PDL BioPharma Inc.
) posted fourth-quarter earnings of 34 cents per share, ahead of
the Zacks Consensus Estimate of 32 cents and the year-ago figure
of 24 cents. The increase in earnings was attributable to higher
PDL BioPharma generated fourth-quarter 2012 revenues of $86
million, up 18.2% year over year. Revenues were in line with the
company's guidance announced in Dec 2012. Revenues were also in
line with the Zacks Consensus Estimate.
PDL BioPharma's full year 2012 earnings of $1.45 per share
were ahead of the year-ago figure of $1.15. Earnings for the full
year edged passed the Zacks Consensus Estimate of $1.44 per
share. The company generated revenues of $374.5 million for the
year 2012, up 3.4%. Revenues were nominally ahead of the Zacks
Consensus Estimate of $374 million.
Quarter in Detail
PDL BioPharma derived revenues for the fourth quarter of 2012
solely from royalties. PDL BioPharma receives royalties from
Roche Holdings Ltd.
). The royalties are earned on worldwide net sales of products
like Avastin, Herceptin, Lucentis, Xolair and Tysabri.
Increased royalties on sales of Avastin and Herceptin drove
fourth-quarter 2012 royalties.
Effective from the second quarter of 2011, PDL BioPharma
started paying back a portion of the royalties it receives on
Lucentis sales outside the US to Novartis. The payment is made in
accordance with a settlement agreement, which the companies had
entered into in Feb 2011. The fourth-quarter 2012 revenue is net
of this payment.
General and administrative (G&A) expenses were $7.7
million in the reported quarter, up approximately 60.3%.
The company is expected to provide revenue guidance for the
first quarter of 2013 later this month.
In Feb 2013, the US Food and Drug Administration (FDA)
approved Roche's Kadcyla for the second line treatment of HER2+
metastatic breast cancer and first line treatment of those
patients who relapse within six months following adjuvant
therapy. PDL BioPharma expects to receive royalties on sales of
Kadcyla from the second quarter of 2013. Roche is also seeking EU
approval of the product.
PDL BioPharma, a biotechnology company, currently carries a
Zacks Rank #3 (Hold). However other biotechnology companies such
) carry a Zacks Rank #1 (Strong Buy).
CYTOKINETCS INC (CYTK): Free Stock Analysis
NOVARTIS AG-ADR (NVS): Free Stock Analysis
PDL BIOPHARMA (PDLI): Free Stock Analysis
ROCHE HLDG LTD (RHHBY): Get Free Report
To read this article on Zacks.com click here.