Fargo reiterated Buy. Broader biotech (XBI) news that moved the stock

What happened

Rapport Therapeutics reported positive topline data from a 253-patient U.S. Phase 2 trial of RAP-219 in adults with acute bipolar I mania: the drug met its primary endpoint with a statistically significant 3.1-point placebo-adjusted improvement on the Young Mania Rating Scale at Week 3 (p=0.045), plus a 0.4-point benefit on the CGI-BP mania severity scale, with all 11 YMRS items numerically improved. Safety was the standout: all treatment-emergent adverse events were mild or moderate, with no severe or serious events — and crucially low sedation (somnolence) and no movement-disorder signals, differentiating it from existing mood stabilizers that are notoriously sedating. Rapport plans an FDA End-of-Phase 2 meeting in Q1 2027 and two Phase 3 trials starting in 2H 2027, with cash of $436.1M funding a runway into 2H 2029. The news was disclosed via an 8-K filed October 20 at 6:05 AM ET.

What happened

U.S. District Judge Richard G. Andrews (Delaware) ruled Wednesday afternoon that rival Liquidia infringed claims 1 and 14 of United Therapeutics' U.S. Patent No. 11,826,327 — covering inhaled treprostinil for pulmonary hypertension associated with interstitial lung disease (PH-ILD), including dry-powder delivery — while invalidating the four other claims United had asserted. The judge ordered both sides to file proposed final judgments and remedies within one week; United has already sought an injunction that could restrict Yutrepia sales. Stocks diverged sharply: United Therapeutics jumped 12.6% to $541.89 (near its 52-week high of $596.76), Liquidia collapsed 57.2% to $30.26, and MannKind, partnered with United on Tyvaso, popped 16.8%. Leerink Partners analyst Roanna Ruiz called the ruling 'a positive upside surprise for UTHR.' Liquidia CEO Roger Jeffs said the company disagrees and will 'pursue all available appellate options.'