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PDL BioPharma (PDLI) Q2 Earnings Beat, Revenues Rise Y/Y

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

PDL BioPharma, Inc. Price, Consensus and EPS Surprise | PDL BioPharma, Inc. Quote

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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PDL BioPharma, Inc. (PDLI): Free Stock Analysis Report

Enzo Biochem, Inc. (ENZ): Free Stock Analysis Report

Biogen Inc. (BIIB): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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