Plan to purchase @6
PDL BioPharma reported Q4 revenue of $49.8 million and non-GAAP EPS
of $0.04, which includes revenue from discontinued operations, below consensus of $110.8 million and
$0.18. 260 jobs are to be cut. Management also indicated that they failed to obtain any firm offers for the sale of the company.
PDL BioPharma announced that it is planning to sell its key assets, and if possible the entire business. The company is seeking strategic alternatives. Wachovia Securities expects that the company will be able to sell its drug and drug pipeline. Further, Wachovia feels that this business is worth $12-13 per share and the company can expect a premium of 10-20 percent. This news and a rating upgrade from ‘Market Perform’ to ‘Outperform’ resulted in an increase in the stock price of PDL BioPharma.
PDL BioPharma plans to sell its commercial assets (such as Cardene and IV Busulfex products) and reduce its workforce. Further, the company will also terminate Nuvion phase 3 program in ulcerative colitis, citing poor safety profile and insufficient efficacy as the reason.