Shares of Liquidia Technologies Inc (LQDA) surged 5.01% in Monday's trading session, as investors react positively to the company's growth prospects and recent regulatory win. The biopharmaceutical firm, which focuses on developing and commercializing products for unmet patient needs, has been gaining attention for its innovative treatments and strong financial outlook.

One of the key drivers behind Liquidia's stock rally appears to be the recent FDA approval of YUTREPIA, the company's innovative inhalation powder for pulmonary arterial hypertension. This regulatory milestone marks a significant achievement for Liquidia, despite ongoing patent litigation with United Therapeutics. The approval of YUTREPIA positions Liquidia to potentially capture a share of the lucrative pulmonary arterial hypertension market.

Adding to investor optimism is Liquidia's impressive growth forecast. The company is projected to expand its revenue by 43.8% annually, substantially outpacing the average growth rate in the US market. This robust growth outlook, coupled with expectations of profitability within the next three years, has likely contributed to the stock's upward movement. Moreover, analysis suggests that Liquidia's shares may be trading below their estimated fair value, indicating potential for further price appreciation.