Edison Initiates Coverage on PDL BioPharma

Edison Investment Research, a leading international investment research firm, announces the initiation of full coverage of PDL BioPharma

Jul 21, 2015, 10:45 ET from Edison Investment Research

LONDON, July 21, 2015 /PRNewswire/ --

Highlights of the analysis on PDL BioPharma by Edison's healthcare analysts Maxim Jacobs and Christian Glennie are as follows:

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PDL BioPharma is reinventing itself as a healthcare-focused finance company through a two-pronged strategy, investing in royalty streams and providing high-yield financing life science companies with near-term product launches. This strategy allows investors to gain exposure in healthcare through a relatively low-risk, diversified vehicle. We currently value PDL at $6.84 per basic share.

PDL, which originated as biotechnology company Protein Design Labs in 1986, has morphed from a standard biotechnology company with drugs and high R&D expenses to a diversified manager of royalty and debt assets. This change in business type has enabled it to have an infrastructure with $30m in operating expenses, only 10 employees and a very high profit margin (55% net margin). As a reference, in 2005, it had a total of 977 full-time employees and $445m in operating expenses (and a net loss of over $166m). It is currently receiving royalties from some of the most successful biotech drugs ever (Avastin, Herceptin, etc) and receives a steady stream of high-interest payments from notes it has written for small medical device and diagnostic companies.

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For more information please contact:
Maxim Jacobs    
Edison Investment Research    

Christian Glennie
Edison Investment Research

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SOURCE Edison Investment Research