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