Breaking News
Get 40% Off 0
🔎 See NVDA's full ProTips for an instant risks or rewards Claim 40% OFF

PDL BioPharma (PDLI) Misses On Q4 Earnings, To Dissolve By Year-End

By Zacks Investment ResearchStock MarketsMar 12, 2020 12:16AM ET
www.investing.com/analysis/pdl-biopharma-pdli-misses-on-q4-earnings-to-dissolve-by-yearend-200515604
PDL BioPharma (PDLI) Misses On Q4 Earnings, To Dissolve By Year-End
By Zacks Investment Research   |  Mar 12, 2020 12:16AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
 
PDLI
0.00%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
ASRT
-0.96%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
EVFM
-4.38%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
KDNY
+0.00%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 

PDL BioPharma, Inc. (NASDAQ:PDLI) reported earnings of 2 cents per share (including the impact of stock-based compensation expense) in the fourth quarter of 2019, missing the Zacks Consensus Estimate of 5 cents. The bottom line was also lower than the year-ago earnings of 10 cents.

The company reported total revenues of a negative $5.8 million in the quarter against the positive $46 million generated in the prior year. The negative revenues were due to a change in the fair value of royalty rights for the type II diabetes products acquired from Assertio Therapeutics (NASDAQ:ASRT) .

Notably, along with the earnings release, PDL announced a plan to dissolve the company by the end of the ongoing year. The monetization of the assets is currently underway and the company targets to file a certificate of dissolution under the Delaware Law by 2020 end.

Shares of PDL were down 2.3% in after-hours trading on Wednesday following the above news. In fact, the stock has lost 12.6% in the past year compared with the industry’s decrease of 12.1%.

Quarter in Detail

Product revenues in the quarter were $21 million, down 19.3% year over year. The same included $12.4 million from the sales of Noden products, namely Tekturna and Tekturna HCT, and another $8.5 million from the sales of LENSAR laser system in the United States.

Notably, revenues from LENSAR laser system increased 19% year over year and also 4.9% sequentially. Per the company, the majority of its top-line growth was owing to revenues recognized from the ex-U.S. markets. Additionally, in the fourth quarter, LENSAR procedure volume surged 41% year over year.

On the conference call, management stated that the branded Tekturna and its authorized generic version captured 73% market share in the United States at the end of the reported quarter, remaining flat sequentially. In March 2019, the authorized generic version of Tekturna (150 mg/300 mg tablets) hit the market in the United States.

During the fourth quarter, PDL recognized negative revenues of $26.8 million from royalty rights against the positive $19.1 million revenues reported in the prior-year period.

As of Dec 31, 2019, PDL had cash, cash equivalents, marketable securities worth $193.5 million compared with $294.3 million as of Sep 30, 2019.

Full-Year Results

PDL generated revenues of $54.8 in 2019, plunging 72.3% year over year.

Liquidation Updates

We remind investors that in December 2019, PDL completed the strategic review process, which was initiated in September. The company decided to halt the execution of its growth strategy, cease additional investments and seek value by monetizing the assets as well as returning net proceeds to its shareholders.

Per the company, last month, PDL’s board of directors approved a formal plan of complete liquidation and passed a resolution to seek stockholder approval at its next annual stockholders' meeting to dissolve the company under the Delaware state law.

Moreover, PDL engaged financial advisors to evaluate the sale of its holdings in Evofem Biosciences, Inc. (NASDAQ:EVFM) common stock, its portfolio of royalty assets plus its Noden and LENSAR subsidiaries.

PDL BioPharma, Inc. Price, Consensus and EPS Surprise

Zacks Rank & Key Pick

PDL currently carries a Zacks Rank #3 (Hold). A better-ranked stock in the biotech sector is Aduro Biotech, Inc. (NASDAQ:ADRO) , which sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Aduro’s loss per share estimates have been narrowed 16.3% for 2020 over the past 60 days.

The Hottest Tech Mega-Trend of All

Last year, it generated $24 billion in global revenues. By 2020, it's predicted to blast through the roof to $77.6 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.

See Zacks' 3 Best Stocks to Play This Trend >>



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

Aduro Biotech, Inc. (ADRO): Free Stock Analysis Report

Neothetics, Inc. (EVFM): Free Stock Analysis Report

ASSERTIO THERAPEUTICS, INC (ASRT): Free Stock Analysis Report

Original post

Zacks Investment Research
PDL BioPharma (PDLI) Misses On Q4 Earnings, To Dissolve By Year-End
 

Related Articles

PDL BioPharma (PDLI) Misses On Q4 Earnings, To Dissolve By Year-End

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.
  • Any comment you publish, together with your investing.com profile, will be public on investing.com and may be indexed and available through third party search engines, such as Google.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email