PDL BioPharma

BMS inks $710M development deal with PDL

John Carroll — Wed, 20 Aug 2008 10:20:13 -0400

Bristol-Myers Squibb is paying $30 million upfront in a licensing deal for PDL BioPharma's experimental blood cancer vaccine elotuzumab. And will it pay up to $680 million more if the Phase I cancer therapy hits all of its development and sales milestones. The anti-CS1 antibody binds to a protein that plays a key role in multiple myeloma, flagging it for destruction by the human immune system. BMS agreed to cover 80 percent of the development costs with PDL putting up 20 percent. The two plan to share profits in the U.S. And the deal includes an option to collaborate on PDL241 after it completes preliminary testing.

"Consistent with our company's strategy to integrate external innovation and to expand our capabilities, this collaboration will further strengthen our pipeline of agents targeting hematologic malignancies, which includes SPRYCEL and tanespimycin, an Hsp90 inhibitor from our recent acquisition of Kosan Biosciences," said Francis Cuss, M.D., senior vice president, discovery and exploratory clinical research, Bristol-Myers Squibb.

--read the AP report
--read the Bristol-Myers Squibb release

PDL spins off biotech biz

Fri, 11 Apr 2008 06:59:58 -0400

After struggling for months to sell the company or some of its assets, PDL BioPharma has announced plans to spin off its biotech operations into a publicly-traded company. The new company will be capitalized with $375 million over the next three years. PDL BioPharma will keep its antibody humanization business, along with royalty revenues from its products. In a statement, PDL said the move will allow "investors to invest in and realize the benefits of each asset independently."

Additionally, PDL declared the special cash dividend following receipt of the proceeds from the company's recent sales of its commercial and cardiovascular products, and its biologics manufacturing facility. EKR Therapeutics bought Cardene, Cardene SR, Retavase, ularitide, and other products for $85 million, while Genmab bough PDL's Minnesota-based antibody manufacturing facility. PDL will distribute over $500 million to stockholders.

"...[F]ollowing our stated plan to evaluate mechanisms to distribute to our stockholders the benefit of our royalty stream, we are taking this definitive step of separating our biotechnology operations from our antibody humanization royalty assets, including such royalty revenues from all current and future licensed products. With this plan to spin off the biotechnology operations, investors can realize the value of each asset fully and independently," stated PDL chairperson Karen A. Dawes.

- see PDL's release
- and here's The Wall Street Journal article

Related Articles:
PDL BioPharma puts out 'for sale' sign. PDL report
In last act, PDL chief takes out the axe. Layoff report
PDL chief resigns in wake of investor wrangle. PDL report
PDL BioPharma rises on shareholder complaint. PDL report

ALSO NOTED: PDL offers bonuses to top execs; Radius earns $28.3M for milestone;Cytokinetics surges on positive data; and much m

Wed, 02 Apr 2008 07:59:50 -0400

> PDL BioPharma says it will pay four top executives nearly $1 million in bonuses through the end of next year to keep them on board as the company undergoes a transformation into an antibody development outfit. Story

> Radius Health has completed patient enrollment into its Phase II clinical trial of BA058 for osteoporosis. That milestone won the company a second-tranche financing of $28.3 million for a total second institutional investment of $67.5 million. Release

> Sirtris has won orphan drug status for its closely watched therapy resveratrol as a treatment for MELAS syndrome. Release

> Pfizer scooped up 87 percent of Encysive stock in a tender offer that closed on Monday. The $2.35 offer values Encysive at $195 million and a subsequent offering will now run through Friday for all remaining shares. Encysive has been developing new therapies for high blood pressure. Report

> Replidyne plans to pay its CFO and corporate development officer $250,000 bonuses to stay on with the company as it completes an unspecified deal. The biotech has been looking to partner up on its antibiotic drug faropenem medoxomil. Report

> Positive data for Cytokinetics' heart failure drug CK-452 helped spur the company's stock price. Mid-stage results demonstrate improved heart function in patients taking two doses of the drug. Final results from the Phase IIa are expected in the second half of the year. Report

> Shares of Kamada jumped 13 percent on the news that its late-stage trial in the U.S. for its Alpha-1 Antitrypsin treatment of congenital emphysema posted positive interim results. Release

> An experimental drug has demonstrated an ability to improve memory and slow the effects of aging in rats. Researchers believe the same drug--S18986--can interact with AMPA in human brains. Report

> Japanese scientists have found a way to deliver a payload of artificial molecules designed to prevent cells from secreting collagen, possibly pointing to a new approach to treating cirrhosis. Report

> The recent revelation in the New York Times that a tobacco company had quietly--some say secretly--funded a research program on lung cancer prompted the Boston Globe to go out in search of tobacco money behind local research groups. It didn't have to go very far. Report

> Intermune announced that an early-stage study of its experimental hepatitis C drug met safety endpoints and appears effective. The news sent its shares up 18 percent. Release

> A federal court struck down new patent rules that had several drugmakers up in arms, including GlaxoSmithKline. Report

And Finally... Should the feds fund studies to compare drugs' effectiveness? The idea appears to be gaining traction. Report

PDL BioPharma puts out 'for sale' sign

Tue, 02 Oct 2007 06:59:58 -0400

The troubled PDL BioPharma has put out the 'for sale' sign in an attempt to find a buyer for the company as a whole or of its key assets. This comes in addition to an earlier announcement that PDL would be selling its three approved drugs--Cardene, Retavase and Busulfex.

PDL also announced that CEO Mark McDade has officially stepped down. McDade has weathered a storm of criticism from Third Point, PDL's largest shareholder, on his handling of the company and its finances. McDade recently announced this decision to resign despite an outside investigation that found no wrongdoing on his part. PDL's board has elected L. Patrick Gage, Ph.D., as interim CEO.

- see PDL's release for more

Related Articles:
In last act, PDL chief takes out the axe. Report
PDL chief resigns in wake of investor wrangle. Report
Biotech CEOs face rising fury of angry investors. Report
PDL BioPharma rises on shareholder complaint. Report
PDL therapy fails endpoints in Phase III. Report

In last act, PDL chief takes out the axe

Wed, 29 Aug 2007 06:59:58 -0400

Mark McDade has already announced that he's leaving his post as CEO of PDL BioPharma at the end of the year. And last night he revealed some very good reasons for hitting the exit. First, the company's late-stage therapy Nuvion, for ulcerative colitis, was axed after researchers harvested some discouraging efficacy data. PDL said in the same breath that it is putting its three approved drugs--Cardene, Retavase and Busulfex, all acquired in the ESP Pharma buyout two years ago--up for sale and is terminating 250 workers as it concentrates its development work on cancer and immunological diseases. A company spokesperson says that more layoffs are coming.

That could be seen as a vindication of sorts for Third Point, a big PDL investor which has directed a stream of scathing reviews McDade's way. An internal investigation has cleared McDade of Third Point's claim that McDade was incompetent and blowing the company's money, but he announced plans to resign soon nevertheless. With this kind of news to deliver, sooner may look a lot better than later.

- see PDL's release on the changes

Related Articles:
PDL chief resigns in wake of investor wrangle. Report
Biotech CEOs face rising fury of angry investors. Report
PDL BioPharma rises on shareholder complaint. Report
PDL therapy fails endpoints in Phase III. Report

PDL chief resigns in wake of investor wrangle

Tue, 21 Aug 2007 06:59:56 -0400

Another biotech CEO bites the dust after tangling with a key investor. PDL BioPharma's CEO has decided to step aside after a company probe cleared him of charges leveled by the biotech's biggest shareholder. Mark McDade says he will leave by the end of this year, following a bitter fight with Third Point, which claimed the CEO had dropped the ball on a big deal with a major pharma company, missed projections and bungled the company's finances. The company's finance committee, though, concluded that there was no merit to Third Point's claims. Analysts generally applauded the planned exit, which triggered a surge in PDL's shares.

- check out the announcement on McDade's resignation
- here's the report on PDL from Forbes

Related Articles:
Biotech CEOs face rising fury of angry investors. Report
PDL BioPharma rises on shareholder complaint. Report
PDL therapy fails endpoints in Phase III. Report

Biotech CEOs face rising fury of angry investors

Thu, 26 Jul 2007 06:59:56 -0400

The San Francisco Chronicle reports that a growing number of biotech execs have had to ward off the angry attacks of shareholder activists who protest the way they're running their companies. Case in point: PDL BioPharma CEO Mark McDade, who faced protests over his real estate deal for swanky new offices in Redwood City, CA. And hedge fund managers and other investors are turning up the heat on other CEOs with a questionable track record for handling money. Third Point LLC is responsible for much of this flak, mounting attacks on PDL, Ligand and Nabi. MedImmune and ImClone can both also attest to the trend.

- here's the article from the San Francisco Chronicle

Related Articles:
PDL BioPharma rises on shareholder complaint. Report
Icahn takes control of ImClone as CEO departs. Report
Nabi CEO walks after hedge fund balks. Report