Edison Initiates Coverage on PDL BioPharma

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:

     (Logo: http://photos.prnewswire.com/prnh/20130417/608168 )

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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About Edison: Edison, the investment intelligence firm, is the future of investor interaction with corporates. Our team of over 100 analysts and investment professionals works with leading companies, fund managers and investment banks worldwide to support their capital markets activities. We provide services to more than 400 retained corporate and investor clients from our offices in London, New York, Frankfurt, Sydney and Wellington. Edison is authorised and regulated by the Financial Conduct Authority (http://www.fsa.gov.uk/register/firmBasicDetails.do?sid=181584).

Edison is not an adviser or broker-dealer and does not provide investment advice. Edison's reports are not solicitations to buy or sell any securities.

For more information please contact:
Maxim Jacobs    
Edison Investment Research    
+1-646-653-7027

Christian Glennie
Edison Investment Research
+44-(0)20-3077-5727
[email protected]

Contact details: Learn more at http://www.edisongroup.com and connect with Edison on:

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SOURCE Edison Investment Research

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