PDL BioPharma, Inc.PDLI reported earnings of 26 cents per share in the second quarter of 2017, surpassing both the Zacks Consensus Estimate and the year-ago earnings of 9 cents per share.
The company generated total revenue of $143.8 million in the quarter, significantly skyrocketing 583% compared with the year-earlier figure of $21 million. This increase in revenue is mainly driven by royalties from PDL BioPharma's licensees to the Queen et al. patents. Also, a rise in royalty rights - change in fair value - contributed to higher revenues this quarter. This was primarily due to the current period's increase in fair value of the Depomed royalty asset.
Notably, the company received cash payments of $34.6 million from the royalty rights acquired from Depomed, primarily related to Glumetza, a product marketed by Valeant Pharmaceuticals International, Inc. VRX . An authorized generic version of Glumetza was also launched by a Valeant subsidiary in February for which, PDL BioPharma receives 50% of the gross margin.
The company's shares rallied more than 10% at after-hours trading on Monday. Shares of the company have outperformed the industry so far this year. The shares have climbed 12.7% compared with the industry's increase of 8.9%.
Quarter in Detail
Revenues included royalties of $16.3 million from licenses to the Queen et al. patents, which consisted of royalties earned on sales of Tysabri, net royalty payments from the acquired royalty rights and a change in fair value of the royalty rights assets of 83.7 million, interest revenues of $5.5 million, product revenues of $18.2 million (sales of Noden products - Tekturna and Tekturna HCT in the U.S. and leasing of the LENSAR Laser System) and license and other revenues of $19.5 million.
Revenues of $16.2 million from the Queen et al. licenses were higher than the year-ago figure of $14.2 million, courtesy higher royalties on Tysabri from Biogen Inc. BIIB .
Research and development (R&D) expense for the quarter came in at $4.2 million. No R&D costs were recorded in the year-ago quarter.
General and administrative expenses surged 61.4% to nearly $11.3 million from the year-ago figure.
PDL BioPharma, Inc. Price, Consensus and EPS Surprise
Zacks Rank & Key Picks
PDL BioPharma currently carries a Zacks Rank #3 (Hold). A better-ranked stock in the healthcare sector is Enzo Biochem, Inc. ENZ , carrying a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank stocks here .
Enzo Biochem's loss per share estimates narrowed down from 12 cents to 7 cents for 2017 and from 11 cents to 3 cents for 2018, over the last 60 days. The company delivered positive earnings surprises in all the trailing four quarters with an average beat of 55.83%. The company's share price has surged 64.5% year to date.
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