PDL BioPharma Announces Fourth Quarter and Full Year 2012 Financial Results

 PDL BioPharma Announces Fourth Quarter and Full Year 2012 Financial Results

PR Newswire

INCLINE VILLAGE, Nev., March 1, 2013

INCLINE VILLAGE, Nev., March 1, 2013 /PRNewswire/ --PDL BioPharma, Inc. (PDL)
(NASDAQ: PDLI) today reported financial results for the fourth quarter and
full year ended December 31, 2012.

(Logo: http://photos.prnewswire.com/prnh/20110822/SF55808LOGO)

Total revenues in 2012 were $374.5 million, compared to $362.0 million in
2011, with royalty revenues increasing seven percent over full year 2011. For
the fourth quarter of 2012, total revenues were $86.0 million, compared to
$72.8 million in the fourth quarter of 2011.

Royalty revenues for the fourth quarter of 2012 are based on third quarter
product sales by PDL's licensees. The fourth quarter 2012 revenue growth was
primarily driven by increased royalties from third quarter 2012 sales of
Herceptin^® and Avastin^®, which are marketed by Genentech and Roche. Royalty
revenue for the fourth quarter and 2012 are net of payments made under our
February 2011 settlement agreement with Novartis Pharma AG.

Operating expenses in 2012 were $25.5 million, compared with $18.3 million in
2011. For the fourth quarter of 2012, general and administrative expenses were
$7.7 million compared with $4.8 million for the same period of 2011.

Net income in 2012 was $211.7 million, or $1.45 per diluted share as compared
with net income of $199.4 million in 2011 or $1.15 per diluted share. Net
income for the fourth quarter of 2012 was $49.4 million or $0.34 per diluted
share as compared with net income of $38.9 million or $0.24 per diluted share
for the same period of 2011.

Net cash provided by operating activities in 2012 was $210.2 million, compared
with $169.8 million in 2011. At December 31, 2012, PDL had cash, cash
equivalents and investments of $148.7 million, compared with $227.9 million at
December 31, 2011. The reduction in cash relates primarily to the Company's
income generating asset transactions, repayment of the Company's non-recourse
notes and dividend payments.

Recent Developments

Kadcyla™ or T-DM1, a New Royalty-Bearing Product of PDL

On February 22, 2013, Genentech announced that the U.S. Food and Drug
Administration (FDA) approved Trastuzumab emstansine (T-DM1), now named
Kadcyla. Kadcyla was approved for second line treatment of HER2+ metastatic
breast cancer and first line treatment for those patients who relapse within
six months following adjuvant therapy. Roche has submitted a Marketing
Authorization Application to the European Medicines Agency (EMA) for the same
indication. Kadcyla is a licensed product of Genentech and has been priced at
$9800 per month. PDL expects to receive royalties on sales of Kadcyla in the
quarter following the first quarter of sales in accordance with Genentech's
license agreements with PDL.

Avastin, a Royalty-Bearing Product of PDL

In October, Genentech and Roche announced that the European Commission
approved Avastin in combination with standard chemotherapy (carboplatin and
gemcitabine) as a treatment for women with first recurrence of
platinum-sensitive ovarian cancer. In November, the European Medicines Agency
adopted a positive opinion regarding the use of Avastin in second-line
metastatic colorectal cancer. Also in November, additional details were
announced regarding Phase 3 patients with newly diagnosed glioblastoma, who
were treated with Avastin plus radiation and chemotherapy, which showed an
increase in progression-free survival of 36 percent when compared to radiation
and chemotherapy.

Obinutuzumab, a Potential Royalty-Bearing Product of PDL

In January, Genentech announced Phase 3 results from an obinutuzumab (GA101)
trial showing a significant improvement in progression-free survival in people
with chronic lymphocytic leukemia (CLL). Data from this trial will be
submitted to European regulatory authorities and to the U.S. Food and Drug
Administration (FDA) for potential approval.

2013 Dividends

On January30, 2013, PDL's Board of Directors declared regular quarterly
dividends of $0.15 per share of common stock, payable on March 12, June 12,
September 12 and December 12 of 2013 to all stockholders who own shares of PDL
on March 5, June 5, September 5 and December 5 of 2013, the record dates for
each of the dividend payments, respectively.

Revenue Guidance for 2013

As previously announced, PDL will continue to provide revenue guidance for
each quarter in the third month of that quarter. First quarter 2013 revenue
guidance will be provided in early March.

Conference Call Details

PDL will hold a conference call to discuss financial results at 4:30 p.m. ET
today, March 1, 2013.

To access the live conference call via phone, please dial (800) 668-4132 from
the United States and Canada or (224) 357-2196 internationally. Please dial in
approximately 10 minutes prior to the start of the call. A telephone replay
will be available beginning approximately one hour after the call through
March 8, 2013, and may be accessed by dialing (855) 859-2056 from the United
States and Canada or (404) 537-3406 internationally. The replay passcode is
12523654.

To access the live and subsequently archived webcast of the conference call,
go to the Company's website at http://www.pdl.com and go to "Company
Presentations & Events." Please connect to the website at least 15 minutes
prior to the call to allow for any software download that may be necessary.

About PDL BioPharma

PDL pioneered the humanization of monoclonal antibodies and, by doing so,
enabled the discovery of a new generation of targeted treatments for cancer
and immunologic diseases. Today, PDL is focused on intellectual property asset
management, investing in new income generating assets and maximizing value for
its shareholders. For more information, please visit www.pdl.com.

NOTE: PDL BioPharma and the PDL BioPharma logo are considered trademarks of
PDL BioPharma, Inc.

Forward-looking Statements

This press release contains "forward-looking statements" within the meaning of
Section 27A of the Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended. Each of these forward-looking
statements involves risks and uncertainties.Actual results may differ
materially from those, express or implied, in these forward-looking
statements.Important factors that could impair the value of the Company's
royalty assets, restrict or impede the ability of the Company to invest in new
income generating assets and limit the Company's ability to pay dividends are
disclosed in the risk factors contained in the Company's Annual Report on Form
10-K filed with the Securities and Exchange Commission. All forward-looking
statements are expressly qualified in their entirety by such factors. We do
not undertake any duty to update any forward-looking statement except as
required by law.



PDL BIOPHARMA, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME DATA
(Unaudited)
(In thousands, except per share amounts)
                               Three Months Ended     Year Ended
                               December 31,           December 31,
                               2012       2011        2012         2011
Revenues
Royalties                      $86,046    $ 72,808   $374,525     $351,641
License and other              -          -           -            10,400
Total revenues                 86,046     72,808      374,525      362,041
Operating Expenses
General and administrative     7,732      4,822       25,469       18,338
expenses
Operating income               78,314     67,986      349,056      343,703
Non-operating expense, net
Loss on retirement or
conversion of convertible      -          -           -            (766)
notes
Interest and other income,     4,728      130         7,113        593
net
Interest expense               (5,950)    (8,161)     (29,036)     (36,102)
Total non-operating expense,   (1,222)    (8,031)     (21,923)     (36,275)
net
Income before income taxes     77,092     59,955      327,133      307,428
Income tax expense             27,684     21,013      115,464      108,039
Net income                     $49,408    $ 38,942   $211,669     $199,389
Net income per share
Basic                          $  0.35  $   0.28  $   1.52  $   1.43
Diluted                        $  0.34  $   0.24  $   1.45  $   1.15
Shares used to compute income  139,764    139,680     139,711      139,663
per basic share
Shares used to compute income  145,419    167,683     146,403      177,441
per diluted share
Cash dividends declared per    $    -  $    -  $   0.60  $   0.60
common share



PDL BIOPHARMA, INC.
CONDENSED CONSOLIDATED BALANCE SHEET DATA
(Unaudited)
(In thousands)
                                  December 31,
                                  2012                   2011
Cash, cash equivalents and        $      148,689   $      227,946
investments
Total assets                      $      279,966   $      269,471
Convertible notes payable         $      309,952   $      316,615
Non-recourse notes payable        $            $       93,370
                                   -
Total stockholders' deficit       $                $      (204,273)
                                  (68,122)



PDL BIOPHARMA, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW DATA
(Unaudited)
(In thousands)
                                                            Year Ended
                                                            December 31,
                                                            2012      2011
Net income                                                  $211,669  $199,389
Adjustments to reconcile net income to net cash provided    26,644    43,574
by operating activities
Changes in assets and liabilities                           (28,097)  (73,181)
Net cash provided by operating activities                   $210,216  $169,782



PDL BIOPHARMA, INC.
MIX OF EX-U.S. SALES AND EX-U.S.-BASED MANUFACTURING AND SALES
OF GENENTECH PRODUCTS
(Unaudited)
                                             Three Months Ended  Year Ended
                                             December 31,         December 31,
                                             2012        2011     2012    2011
Avastin
          % Ex-U.S. Sold                     57%         53%      56%     55%
          % Ex-U.S.-based Manufactured and   40%         28%      29%     21%
          Sold
Herceptin
          % Ex-U.S. Sold                     69%         68%      69%     71%
          % Ex-U.S.-based Manufactured and   35%         26%      37%     35%
          Sold
Lucentis
          % Ex-U.S. Sold                     66%         60%      63%     59%
          % Ex-U.S.-based Manufactured and   0%          0%       0%      0%
          Sold
Xolair
          % Ex-U.S. Sold                     38%         40%      39%     40%
          % Ex-U.S.-based Manufactured and   38%         40%      39%     40%
          Sold





SOURCE PDL BioPharma, Inc.

Website: http://www.pdl.com
Contact: John McLaughlin, PDL BioPharma, Inc., +1-775-832-8500,
john.mclaughlin@pdl.com, or Jennifer Williams, Cook Williams Communications,
+1-360-668-3701, jennifer@cwcomm.org
 
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