PDL BioPharma reported Q119 revenues of $38.9, up 1.0% compared to Q118. Going forward, the company indicated that it would be working intensely to maximize its investment in Evofem, a women’s health company that is preparing to submit an NDA for Amphora, a non-hormonal female contraceptive, in Q419 with a launch expected in H120. The company also announced that it has bought back $80.3m worth of its shares since the beginning of the $100m stock repurchase program announced last September.
PDL announced in April that it had entered into a securities purchase agreement with Evofem, a Nasdaq-listed women’s health company that is developing a nonhormonal contraceptive product. PDL will invest up to $60m in two tranches of $30m each, the first of which is already invested and the second expected to be invested by 10 June 2019 at the company’s discretion. Assuming the investment of both tranches, PDL will own approximately 29% of Evofem and will also have a board seat to help actively manage its investment and provide assistance/expertise.
According to the Centers for Disease Control and Prevention (CDC), 61.7% of the 60.9 million women aged 15–44 use contraception. Almost half of those use either short- or long-acting hormonal oral contraceptive pills or devices such as a ring or a patch. According to EvaluatePharma, $6.5bn worth of hormonal contraceptives were sold in 2018.
The company announced that a generic version of Tekturna was recently launched by Anchen Pharmaceuticals, which is currently competing with the branded version of the product and the authorized generic that was launched by Prasco Laboratories in March. With this in mind, the company plans to terminate all promotional efforts in H219.
We have adjusted our valuation from $816m or $6.37 per basic share to $789m or $6.54 per share. The decrease in value is mainly due to a lower net cash level, while the higher per-share value is due to the lower number of shares outstanding as a result of the share repurchase program.