Liquidia Corporation (NASDAQ:LQDA), a biopharmaceutical company developing innovative therapies for patients with rare cardiopulmonary diseases, and Taiwan-based biotechnology company Pharmosa Biopharm Inc announced on Wednesday that they have expanded their collaboration to develop L606, an inhaled, sustained-release formulation of treprostinil.

The new agreement expands Liquidia's licensed territory beyond North America to include key markets in Europe, Japan and elsewhere. Pharmosa will retain certain territories, including China, Korea, Taiwan, the Middle East, North Africa, Turkey and Southeast Asia.

Additionally, Liquidia has been granted certain rights to Pharmosa's next-generation nebulisers.

Liquidia will be responsible for the development and commercialisation of L606 in the expanded territory, while Pharmosa will continue to manufacture the drug. Liquidia will pay Pharmosa an upfront fee of USD3.5m and up to USD157.75m in additional milestone payments.

L606 is currently being evaluated in a clinical trial for the treatment of pulmonary arterial hypertension (PAH) and pulmonary hypertension associated with interstitial lung disease (PH-ILD).