PDL BioPharma (PDLI) Tops Q1 Earnings, Confirms Guidance - Analyst Blog

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PDL BioPharma Inc.PDLI posted first-quarter 2015 earnings of 50 cents per share, above the year-ago figure of 44 cents. First-quarter earnings, however, missed the Zacks Consensus Estimate of 58 cents per share.

PDL BioPharma generated first-quarter 2015 revenues of $149.7 million, up 9.4% year over year. Revenues also came in below the Zacks Consensus Estimate of $131 million.

Quarter in Detail

PDL BioPharma derived revenues for the first quarter of 2015 primarily from royalties. The company received royalties of $127.8 million from the Queen et al. licenses, representing an increase of 10.2%.

PDL BioPharma receives royalties from the likes of Roche Holdings Ltd. RHHBY and Novartis NVS on worldwide net sales of products like Avastin, Herceptin, Xolair, Kadcyla, Perjeta, Tysabri and Actemra.

Increased royalties from sales of Perjeta, Xolair, Kadcyla, Entyvio, Actemra and Tysabri drove first-quarter revenues. Revenues from royalty rights due to a change in fair value of Depomed royalties came in at $11.4 million on par with the year-ago quarter.

According to the agreement with Roche, inked in Feb 2014, and effective retroactively to Aug 15, 2013, PDL BioPharma will receive a fixed royalty rate of 2.125% on global sales of Avastin, Herceptin, Lucentis Xolair, Kadcyla and Perjeta. Previously, royalties on Roche's products were tiered 1-3% in the U.S. and flat 3% in the ex-U.S. markets. PDL BioPharma is expected to recognize royalties till the first quarter of 2016.

General and administrative (G&A) expenses were $7.7 million in the reported quarter, up 67.3%.

In 2015, the company still expects Depomed royalties of around $49 million.

PDL BioPharma has a Zacks Rank #3 (Hold). A well-ranked stock in the health care space is Actelion Ltd. ALIOF sporting a Zacks Rank #1 (Strong Buy).

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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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