Research, Charts & Company Announcements
Research Tree provides access to ongoing research coverage, media content and regulatory news on PDL BIOPHARMA INC. We currently have 7 research reports from 1 professional analysts.
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PDL BIOPHARMA INC
PDL BIOPHARMA INC
Less dividend equals more deals
11 Aug 16
PDL reported earnings for Q216 and announced that the company would be suspending dividend payments until further notice. This follows the reduction in dividends that occurred in Q116. Management made this decision strategically to reallocate resources to capitalize on the current hostile financing environment that has increased the attractiveness of alternative deals. It will also be able to take advantage of big pharma divestments using Noden Pharma as a platform for commercialization.
Noden deal closes
15 Jul 16
PDL announced on 6 July 2016 the closing of its equity investment in Noden Pharma, which concurrently acquired the Tekturna pharmaceutical brand from Novartis. Tekturna and Tekturna HCT are blood pressure medications with a combined revenue of $154m in 2015. Noden paid $110m for the brand on closing with an additional $89m due on the first year anniversary. In comparison, PDL made an equity investment of $75m and will provide $32m in a year for an 88% equity stake in Noden. According to management, the total financing needed by Noden is up to $334m and PDL is committed to providing this funding if other sources are unavailable.
PDL's new investment strategy
02 Jun 16
In a change of strategic direction, PDL announced in May 2016 that the company will be acquiring a majority equity stake in the newly formed Noden Pharma. Noden will use the capital along with additional funds from debt to finance the acquisition of the blood pressure drugs Tekturna and Tekturna HCT from Novartis for a total of $294m in upfronts and milestones. PDL is expected to provide $145m in return for an 88% equity stake, but is obligated to finance any shortfalls in additional planned debt financing.
Glumetza generics take toll
12 May 16
PDL BioPharma announced that it has taken a $48m write-down on the fair value of its Depomed royalty assets during Q116. The reason for the writedown was the faster than expected loss of market share for Glumetza and increase in pricing pressure from generic entry. The quarter also marks the last significant payment from the Queen et al royalty streams, amounting to $121m in revenue, but the concurrent timing of the payment and the write-down produced a tax benefit that offset the loss in Glumetza sales.
Improving financial flexibility
04 Mar 16
As the Queen royalty streams approach expiry, PDL has taken steps to preserve its cash flow by announcing a dividend cut for Q1 to $0.05 per share (from $0.15 per share), which would save the company more than $65m on an annualized basis. This allows PDL BioPharma to meet its financial obligations and gives it greater financial flexibility to make either more deals, larger deals or both, as current market conditions are favorable to alternative financing.
Adding long-term revenue streams
22 Oct 15
PDL recently acquired the rights to two revenue streams, which may help its long-term cash flow position. Firstly, it signed a deal of up to $200m ($50m upfront) with Ariad for royalty rights to Iclusig, an approved oncology drug. Secondly, it signed a $65m deal (all upfront) with AcelRx for royalty rights for its sufentanil sublingual tablet system, Zalviso, which has just been approved in the EU and should launch in H116. The two products could provide total peak royalties of around $50m in 2027.
30 Nov 16
Abzena (ABZA): Interim results indicate happy customers (BUY) | Horizonte Minerals* (HZM): Fund raise completed (CORP) | SacOil* (SAC): Half-year trading statement (CORP) | Revolution Bars (RBG): New openings (BUY) | Amino Technologies* (AMO): Multi operator FUSION roll out (CORP)
N+1 Singer - Morning Song 30-11-2016
30 Nov 16
Sanderson has delivered full year results in line with expectations and the 19 October trading update after a strong finish to the year compensated for a slower start. A healthy level of pre-contracted recurring revenue (50%), incremental sales to existing customers and new customer wins at higher average order values helped deliver solid revenue growth in both the Digital Retail (+9%) and Enterprise (+12%) divisions. A decent order book and good sales momentum suggest that the company is on track to deliver on unchanged profit expectations for the current year. We continue to view the valuation (FY17 EV/EBITDA 8.6x) as undemanding given an attractive combination of accelerating growth potential, strong cash generation and growing dividends.
N+1 Singer - Morning Song 29-11-2016
29 Nov 16
Vp has reported another impressive set of interims, confirming strong growth in most markets and a positive outlook. Recent acquisitions are bedding in well and the full year outturn is set to exceed previous expectations (5%/6% EPS upgrades in FY17/FY18). The recent Capital Markets Day provided a reminder of Vp’s qualities (specialist focus, high returns, strong cash generation) and its growth potential, which in our view are not reflected in a modest <11x P/E rating. We firmly believe the shares are due a re-rating and see intrinsic value in excess of 800p.
Food intolerance driving growth
29 Nov 16
Omega Diagnostics Group has an established core business providing high quality in vitro diagnostic tests within three core areas of competence – Food Intolerance, Allergy & Autoimmune, Infectious Disease – that are sold in over 100 countries. The group offers steady low single-digit growth which is profitable and cash generative. Investment in new products has seen the launch of a new panel of automated allergy tests and progress on Visitect CD4 for monitoring of HIV positive patients. Interim results highlighted the opportunities to accelerate growth of the business, particularly Allersys, which has drawn attention from its partner.
Small Cap Breakfast
29 Nov 16
Asia Pacific Investment Partner - the research-driven emerging and frontier markets real estate development business intends to float on AIM and conduct a placing in December RM Secured Direct Lending - The secured direct lending fund intends to float on the Main Market on 15 December raising up to £100m Diversified Oil & Gas— Schedule One now out. $60m to be raised. Expected admission 6 December. Creo Medical Group —UK based medical device company focused on surgical endoscopy, a recent development in minimally invasive surgery. Admission due 7 December. Fundraising details TBA.