PDL BioPharma Inc.
) posted third-quarter earnings of 32 cents per share, in line
with the Zacks Consensus Estimate but above the year-ago figure
of 28 cents. The year-over-year increase was attributable to
PDL BioPharma generated third-quarter 2012 revenues of $85.2
million, up 1.7% year over year. Revenues were slightly above the
guidance of $85 million announced by the company in September
2012. Revenues narrowly missed the Zacks Consensus Estimate of
Quarter in Detail
PDL BioPharma derived revenues for the third quarter of 2012
solely from royalties. PDL BioPharma receives royalties on
worldwide net sales of
Roche Holdings Ltd.
) Avastin and Herceptin; Roche/
) Lucentis and Xolair; and
Elan Corporation/Biogen Idec
Increased royalties on sales of Avastin, Lucentis and Xolair
drove third 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 February 2011. The third-quarter 2012 revenue is
net of this payment.
General and administrative (G&A) expenses were $5.6
million in the reported quarter, up approximately 42.6% due to
the company's efforts to obtain new royalty assets, legal
expenses and compensation related expenses.
On September 14, 2012, PDL BioPharma paid the third quarterly
dividend of 15 cents per share.
The company is expected to provide revenue guidance for the
fourth quarter of 2012 in December 2012.
We currently have a Neutral recommendation on PDL BioPharma.
The stock carries a Zacks #5 Rank (Strong Sell rating) in the
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