PDL BioPharma (PDLI) Reports Q2 Revenues Above Consensus

PDL BioPharma (NASDAQ: PDLI) reported Q2 EPS of ($0.76), versus $0.06 reported last year. Revenue for the quarter came in at $46.6 million versus the consensus estimate of $44.66 million.

• Total revenues of $46.6 million.
• GAAP net loss attributable to PDL\'s shareholders of $112.3 million or $(0.76) per share.
• GAAP net loss includes a one-time $133.3 million, net of tax, non-cash accounting charge related to the impairment of an intangible asset from Noden Pharma DAC, due to the increased probability of a generic version of aliskiren being launched in the United States by Anchen, offset by a $19.7 million, net of tax, non-cash decrease in the fair value of the contingent liability related to a reduced estimate of the probability in paying milestones to Novartis for Tekturna®.
• Non-GAAP net income attributable to PDL\'s shareholders of $14.7 million. A reconciliation of GAAP to non-GAAP financial results can be found in Table 3 at the end of this news release.
• Cash, cash equivalents, short-term investments and other investments of $395.7 million as of June 30, 2018.
• Repurchased 6.8 million shares of common stock in the open market during the quarter for $19.4 million.

"Our financial results for the second quarter reflect higher product sales resulting from our change in strategy to equity and product investments, and we continue to have a strong cash balance to pursue acquisitions. While we are disappointed with the write down of the Noden asset, the impairment is not an indication of the performance of the business this quarter, but rather is based upon uncertainty in the future generic aliskiren competition in the United States," said John P. McLaughlin, CEO of PDL.

"Last week we announced an amended agreement with Depomed to purchase Depomed's remaining interests in future royalties for $20 million in a transaction we view as highly attractive to our shareholders," he added. "While we are shifting our strategy away from royalty agreements, our familiarity with the Depomed assets and our past success with them supported this investment decision. We expect to begin realizing a return on this investment by late 2020 with meaningful cash returns expected through 2026."

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

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