PDL BioPharma (PDLI) Tops Q4 EPS by 3c, Revenues Miss

PDL BioPharma (NASDAQ: PDLI) reported Q4 EPS of $0.11, $0.03 better than the analyst estimate of $0.08. Revenue for the quarter came in at $45.12 million versus the consensus estimate of $46.08 million.

• Total revenues of $45.1 million for the 2018 fourth quarter and $198.1 million for the full year.
• GAAP net income of $16.3 million or $0.11 per diluted share for the 2018 fourth quarter and a GAAP net loss of $68.9 million or $0.47 per share for the full year. The full year loss was a result of a non-cash accounting charge related to the impairment of an intangible asset from Noden Pharma DAC, due to the expected launch of a generic version of aliskiren in the United States.
• Non-GAAP net income attributable to PDL's shareholders of $15.1 million and $56.7 million for the 2018 fourth quarter and full year, respectively. A reconciliation of GAAP to non-GAAP financial results can be found in Table 3 at the end of this news release.
• Cash and cash equivalents of $394.6 million as of December 31, 2018.
• Repurchased 8.7 million shares of common stock in the open market during the fourth quarter of 2018 at an average price of $2.94 per share, or $25.5 million.

"We are pursuing a strategy of acquiring pharmaceutical products and companies to secure assets with good growth prospects," said Dominique Monnet, president and CEO of PDL. "Our focus is on commercial-stage assets with multi-year sales growth potential, or pharmaceutical products in late-stage clinical development. Our strong, liquid balance sheet allows for the quick deployment of funds to secure transactions that meet our stringent investment parameters. Our goal is to build growing and profitable revenue streams from a balanced portfolio of operating company cash flow and, when appropriate, capture further market value through optimally timed exit strategies.

"The commercial launch of an authorized generic of Tekturna® now underway in the U.S., gives us and our partner Prasco laboratories a first-to-market competitive advantage," he added. "With the expectation of a generic entry, we do not expect to pay any additional milestone payments to Novartis, and eliminated our remaining contingent liability of $19.2 million related to future milestones, which is reflected in our fourth quarter financial results."

"We are reporting progress in the $100 million share repurchase program we announced in late September 2018, which we believe reflects a balanced approach to capital allocation and an appropriate means of creating shareholder value," said Peter Garcia, vice president and CFO of PDL. "Since initiating this current program, we have repurchased a total of 19.4 million shares at a cost of $61.0 million."

For earnings history and earnings-related data on PDL BioPharma (PDLI) click here.

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