"The issue with the patent is novelty. Is it sufficiently novel as a method to suspend a drug in a liquid using a particular type of chemistry. "
According to the following, LTP's product should easily qualify as novel. It does provide a new dosage regime because less of the drug is required from the nasal spray compared to the oral form and the new dosage regime definitely provides a technical benefit because the drug reaches maximum concentration in the blood in a fraction of the time compared to the oral delivery. So the novelty test already should be satisfied even before considering the novelty of suspending the drug in liquid form to allow delivering it nasally rather than orally.
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