PDL BioPharma Provides Third Quarter 2012 Royalty Revenue Guidance of $85 Million
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The forecasted growth in royalty revenues is driven by increased second quarter 2012 sales of Herceptin®, Lucentis® and Xolair® for which PDL receives royalties in the third quarter of 2012. Third quarter revenues will include royalties on second quarter sales of Perjeta®, which was approved in the U.S. on
Genentech Products Made or Sold in US |
Royalty Rate |
Net sales up to |
3.0% |
Net sales between |
2.5% |
Net sales between |
2.0% |
Net sales exceeding |
1.0% |
Genentech Products Made and Sold ex-US |
|
Net sales |
3.0% |
The third quarter royalty payment received from
Revenue guidance for the third quarter of 2012 is net of an estimated payment due under our
Roche reported that in 2012 Herceptin global sales growth was driven by expanded access in developing countries, increased and improved HER2 testing and continued uptake in HER2-positive gastric cancer. Additionally, Roche reported that sustained double-digit increases in sales of Herceptin were recorded internationally. Reported worldwide sales for Herceptin increased one percent in the second quarter of 2012 when compared to the same period in 2011. Ex-U.S. manufactured and sold Herceptin sales represented 37 percent of total Herceptin sales in the second quarter of 2012 as compared with 43 percent in the second quarter of 2011.
Reported worldwide sales for Lucentis increased four percent in the second quarter of 2012 when compared to the same period in 2011. Lucentis is approved for the treatment of age-related macular degeneration (AMD) in the U.S. and
Roche reported Avastin global sales were driven by an uptake in
Reported worldwide sales for Tysabri were flat for the second quarter of 2012 compared to the same period in 2011. Tysabri royalties are determined at a flat rate as a percentage of sales regardless of location of manufacture or sale.
The sales information presented above is based on information provided by PDL's licensees in their quarterly reports to the Company as well as from public disclosures made by PDL's licensees.
About
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 revenue generating assets and maximizing the value of its patent portfolio and related assets. For more information, please visit www.pdl.com.
NOTE:
Forward-looking Statements
This press release contains forward-looking statements. 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. Factors that may cause differences between current expectations and actual results include, but are not limited to, the following:
- The expected rate of growth in royalty-bearing product sales by PDL's existing licensees;
- The relative mix of royalty-bearing
Genentech products manufactured and sold outside the U.S. versus made or sold in the U.S.; - The ability of our licensees to receive regulatory approvals to market and launch new royalty-bearing products and whether such products, if launched, will be commercially successful;
- Changes in any of the other assumptions on which PDL's projected royalty revenues are based;
- The outcome of pending litigation or disputes;
- The change in foreign currency exchange rate; and
- The failure of licensees to comply with existing license agreements, including any failure to pay royalties due.
Other factors that may cause PDL's actual results to differ materially from those expressed or implied in the forward-looking statements in this press release are discussed in PDL's filings with the
SOURCE
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