UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of Earliest Event Reported): August 5, 2009
PDL BioPharma, Inc.
(Exact name of Company as specified in its charter)
000-19756
(Commission File Number)
| Delaware | 94-3023969 | |
| (State or Other Jurisdiction of Incorporation) |
(I.R.S. Employer Identification No.) |
932 Southwood Boulevard
Incline Village, Nevada 89451
(Address of principal executive offices, with zip code)
(775) 832-8500
(Company’s telephone number, including area code)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the Company under any of the following provisions:
| ¨ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
| ¨ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
| ¨ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
| ¨ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
| Item 7.01. | Regulation FD Disclosure. |
On August 5, 2009, the Company made a presentation at a publicly webcast investor conference hosted by the BMO Capital Markets Healthcare Equity Research Team (the “BMO Conference”). A copy of the Company’s presentation materials has been posted on the Company’s website and is attached hereto as Exhibit 99.1.
The Company has posted a Company Overview presentation on its website. A copy of the Company’s presentation materials is attached hereto as Exhibit 99.2.
| Item 9.01. | Financial Statements and Exhibits. |
(d) Exhibits.
| Exhibit No. |
Description | |
| 99.1 | BMO Conference presentation given on August 5, 2009. | |
| 99.2 | Company Overview presentation posted to the Company’s website. | |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Company has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| PDL BIOPHARMA, INC. | ||
| (Company) | ||
| By: | /s/ Christine Larson | |
| Christine Larson | ||
| Vice President, Chief Financial Officer | ||
Dated: August 10, 2009
EXHIBIT INDEX
| Exhibit No. |
Description | |
| 99.1 | BMO Conference presentation given on August 5, 2009. | |
| 99.2 | Company Overview presentation posted to the Company’s website. | |
 BMO Capital Markets
Focus on Healthcare Conference August 2009 Exhibit 99.1 |
 2 Forward Looking Statements This presentation contains forward-looking statements, including PDL's expectations with respect to its 2009 royalty revenues, expenses, net income, and cash provided by operating activities. 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 products manufactured and sold outside the U.S. versus
manufactured or sold in the U.S.; The ability 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; 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 presentation are discussed in PDL's filings with the SEC, including the "Risk Factors" sections of its annual and quarterly reports filed with the SEC. Copies of PDL's filings with the SEC may be obtained at the "Investors" section of PDL's website at www.pdl.com. PDL expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in PDL's expectations with regard thereto or any change in events, conditions or circumstances on which any such statements are based for any reason, except as required by law, even as new information becomes available or other events occur in the future. All forward-looking statements in this
presentation are qualified in their entirety by this cautionary statement.
|
 3 Agenda Overview of PDL BioPharma 2009 Guidance & Outlook Optimizing Stockholder Return |
 4 PDL - Company Background PDL pioneered the humanization of monoclonal antibodies which enabled the discovery of a new generation of targeted treatments for cancer and immunologic diseases PDL’s primary assets are its antibody humanization patents and royalty assets which consist of its Queen et al. patents and license agreements Licensees consist of large biotechnology and pharmaceutical companies including Genentech, Elan, Wyeth, and Chugai |
 5 PDL - Operating Strategy Maximize the value of PDL’s antibody humanization patents and licensing agreements Reduce expenses with headcount of less than 10 and re- domicile of operations to Nevada with no state tax Distribute royalty revenues, net of operating expenses, debt service, and income taxes via dividends to stockholders To improve stockholder IRR - pursue monetization alternatives if beneficial: Convertible note buybacks Share repurchases Monetization of royalty stream |
 PDL - Select Licensed Products 6 Licensee Product Status Indications Roche (Genentech) Avastin Approved Phase 3 Colorectal Cancer NSCLC Metastatic Breast Cancer Gliobastoma Metastatic Renal Cell Carcinoma Ovarian cancer Prostate cancer Adjuvant settings Herceptin Approved Metastatic Breast HER2+ Cancer Lucentis Approved Phase 3 AMD RVO DME Xolair Approved Phase 3 Moderate -Severe Asthma Pediatric Asthma MedImmune Synagis Approved Respiratory Syncytial Virus Elan Tysabri Approved Multiple Sclerosis Roche/Chugai Actemra Approved (EU& Japan) Rheumatoid Arthritis Wyeth Mylotarg Approved Acute Myeloid Leukemia Wyeth/J&J Bapineuzumab Phase 3 Alzheimer’s Disease Lilly Solanezumab Phase 3 Alzheimer’s Disease |
 PDL - Select Licensed Products 7 Licensee Product Status Indications Roche (Genentech) Avastin Approved Phase 3 Colorectal Cancer NSCLC Metastatic Breast Cancer Gliobastoma Metastatic Renal Cell Carcinoma Ovarian cancer Prostate cancer Adjuvant settings Herceptin Approved Metastatic Breast HER2+ Cancer Lucentis Approved Phase 3 AMD RVO DME Xolair Approved Phase 3 Moderate - Severe Asthma Pediatric Asthma MedImmune Synagis Approved Respiratory Syncytial Virus Elan Tysabri Approved Multiple Sclerosis Roche/Chugai Actemra Approved (EU& Japan) Rheumatoid Arthritis Wyeth Mylotarg Approved Acute Myeloid Leukemia Wyeth/J&J Bapineuzumab Phase 3 Alzheimer’s Disease Lilly Solanezumab Phase 3 Alzheimer’s Disease On July 2, Genentech announced that a Phase 3 trial showed Lucentis significantly improved vision in patients with branch retinal vein occlusion at 6 months On July 30, Genentech announced that a Phase 3 trial from a second study showed Lucentis significantly improved vision in patients with central retinal vein occlusion at 6 months |
 PDL - Select Licensed Products 8 Licensee Product Status Indications Roche (Genentech) Avastin Approved Phase 3 Colorectal Cancer NSCLC Metastatic Breast Cancer Gliobastoma Metastatic Renal Cell Carcinoma Ovarian cancer Prostate cancer Adjuvant settings Herceptin Approved Metastatic Breast HER2+ Cancer Lucentis Approved Phase 3 AMD RVO DME Xolair Approved Phase 3 Moderate-SevereAsthma Pediatric Asthma Med Synagis Approved Respiratory Syncytial Virus Elan Tysabri Approved MultipleSclerosis Roche/Chugai Approved (EU& Japan) Actemra Rheumatoid Arthritis Wyeth Mylotarg Approved Acute Myeloid Leukemia Wyeth/J&J Bapineuzumab Phase 3 Alzheimer’s Disease Lilly Solanezumab Phase 3 Alzheimer’s Disease Immune J&J announced that it would buy $1 billion in Elan stock for 50.1% ownership of a new JV to develop treatments for Alzheimer’s Disease, including bapineuzumab J&J also pledged an initial $500 million to fund development of the drugs
|
 9 PDL - Royalty Revenue & Queen et al. Patents PDL’s revenues consist of royalties generated on sales of licensed products: Sold before the expiration of the Queen et al. patents or Made prior to the expiration of the Queen et al. patents and sold anytime thereafter $0 $50 $100 $150 $200 $250 $300 $350 $400 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009E PDL Royalties by Product ($ in millions) Herceptin Avastin Lucentis Synagis Tysabri Aggregate Other |
 10 10 PDL - Legal & Queen et al. Patents Genentech – settlement in 2003 upheld validity and enforceability of patents Multiple product license with tiered fee structure Option for four additional antigens exercised in 2008 Alexion – settlement in December 2008 upheld validity and enforceability of patents License for Soliris in exchange for $25 million Option for additional licenses at 4% royalty MedImmune – in December 2008, filed declaration of invalidity and non-infringement MedImmune has paid royalties since 1998; most recently for 2009-Q1 sales in May 2009 PDL believes that its exercise of its rights under the MedImmune agreement precludes MedImmune from being entitled to a lower royalty rate because of PDL’s settlement with Alexion UCB Celltech – in September 2008, notified PDL that it does not intend to pay royalties on sales of Cimzia In February 2009, US Patent Office declared an interference proceeding between certain claims of Queen et al. patents and pending claims of Adair et al. UCB Celltech is the assignee of the Adair et al. patent |
 11 11 PDL - Convertible Notes $250 million 2.75% convertible subordinated notes due August 2023 Bought back $50 million in open market purchases Current conversion rate is 123.715 shares per $1,000 face amount ($8.08 per share); will adjust in connection with October dividend Holders have a put right in August 2010, August 2013, and August 2018 Price as of July 31 was 107 vs. stock price of $8.25 $250 million 2.00% convertible senior notes due February 2012 Bought back $5 million in open market purchases Current conversion rate is 89.165 shares per $1,000 face amount or $11.22 per share; will adjust in connection with October dividend Price as of July 31 was 93 vs. stock price of $8.25 |
 12 Agenda Overview of PDL BioPharma 2009 Guidance & Outlook Optimizing Stockholder Return |
 PDL - 2009 Revised Guidance 13 Revenue growth driven by product sales of Herceptin, Avastin, Lucentis, and Tysabri Revenue guidance excludes MedImmune royalties due to ongoing legal disputes Approximately 50% of the expense forecast due to legal and other professional fees Increase in expenses due to higher litigation costs, new patent interference and conclusion of activities associated with discontinued commercial and development operations Cash guidance based on anticipated use of $173 million NOL and $20 million tax credit Previous Current Revenue $310 - $325 million Unchanged Operating Expenses $12 - $15 million $20 - $22 million Net Income after taxes $185 - $200 million $200 - $215 million Cash Generated in 2009 $260 - $280 million $285 - $300 million |
 PDL - Roche/Genentech Royalties 14 Roche/Genentech manufacturing integration Close one of the two CHO manufacturing facilities in Vacaville, CA Avastin & Herceptin E. coli manufacturing to transfer to Singapore in 2011/12 Lucentis PDL could see improvement in mix of royalty rates in future years Product made in US Net sales up to $1.5 billion 3.0% Net sales between $1.5 billion and $2.5 billion 2.5% Net sales between $2.5 billion and $4.0 billion 2.0% Net sales over $4.0 billion 1.0% Product made and sold ex-US All sales 3.0% |
 15 Agenda Overview of PDL BioPharma 2009 Guidance & Outlook Optimizing Stockholder Return |
 16 PDL - Optimizing Stockholder Return Intend to distribute royalty revenues, net of operating expenses, debt service and income taxes Declared dividend of $0.50 per share paid on April 1, 2009 Declared dividend of $0.50 per share payable on October 1, 2009 to shareholders of record as of September 17, 2009 In the process of evaluating alternatives Convertible note buyback – gain is taxable but deferrable for 5 years under the American Recovery and Reinvestment Act of 2009 Share repurchases Sale of all or a portion of royalty assets Securitization – formation of SPV and bond issuance |
 17 PDL - Investment Rationale Strong revenue growth from approved products Potential for additional indications from existing products and new product approvals Significantly reduced expenses with no R&D burn Return to stockholders Declared two dividends totaling $1.00 in 2009 Actively exploring other means to enhance stockholder return |
 18 PDL - PDL BioPharma |
 Company Overview
August 200 Exhibit 99.2 9 |
 2 Forward Looking Statements This presentation contains forward-looking statements, including PDL's expectations with respect to its 2009 royalty revenues, expenses, net income, and cash provided by operating activities. 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 products manufactured and sold outside the U.S. versus
manufactured or sold in the U.S.; The ability 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; 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 presentation are discussed in PDL's filings with the SEC, including the "Risk Factors" sections of its annual and quarterly reports filed with the SEC. Copies of PDL's filings with the SEC may be obtained at the "Investors" section of PDL's website at www.pdl.com. PDL expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements contained
herein to reflect any change in PDL's expectations with regard thereto or any change in events, conditions or circumstances on which any such statements are based for any reason, except as required by law, even as new information becomes available or other events occur in the future. All forward-looking statements in this
presentation are qualified in their entirety by this cautionary statement.
|
 3 Overview of PDL BioPharma PDL Licensed Royalty Products Outlook & 2009 Guidance Optimizing Stockholder Return PDL BioPharma |
 4 PDL - Company Background PDL pioneered the humanization of monoclonal antibodies which enabled the discovery of a new generation of targeted treatments for cancer and immunologic diseases PDL’s primary assets are its antibody humanization patents and royalty assets which consist of its Queen et al. patents and license agreements Licensees consist of large biotechnology and pharmaceutical companies including Genentech, Elan, Wyeth, and Chugai |
 5 PDL - Operating Strategy PDL is focused on maximizing the value of its antibody humanization patents and related assets PDL re-domiciled its operations to Incline Village, Nevada in December 2008 to reduce its corporate tax rate The company intends to distribute its royalty revenues, net of operating expenses, debt service, and income taxes PDL declared a 2009 semi-annual dividend of $0.50 per share payable on April 1 and October 1 PDL is actively exploring ways of improving after-tax IRR for its stockholders |
 6 PDL - Management & Board of Directors PDL management: John McLaughlin, President & CEO, hired in November 2008 Cris Larson, VP & CFO, hired in December 2008 Chris Stone, VP & General Counsel, hired in February 2009 Karen Wilson, VP Finance, hired in April 2009 PDL independent board members: Joseph Klein III, Managing Director, Gauss Capital Advisors - joined July 2007 Paul Sandman, retired General Counsel, Boston Scientific - joined October 2008 Jody Lindell, President and CEO, SG Mana, former Partner, KPMG - joined March 2009 Fred Frank, Vice Chairman, Peter J. Solomon Company, former VC, Barclays Capital & Lehman Brothers - joined March 2009 Barry Selick, CEO Threshold Pharmaceuticals – joined August 2009 |
 7 PDL - Historical Revenue with Facet Carve-Out PDL stand-alone revenue after divestiture of Facet Biotech comprises royalties, license, and other revenue Facet revenue primarily includes collaboration revenue from its arrangements with Biogen Idec and Bristol-Myers Squib, and its former arrangement with Roche $ in 000's 2008 Q1 Q2 Q3 Q4 Total Combined PDL/Facet revenue 57,329 $ 111,893 $ 77,346 $ 75,398 $ 321,966 $ Facet revenue 7,140 5,361 8,529 6,740 27,770 PDL stand-alone revenue 50,189 $ 106,532 $ 68,817 $ 68,658 $ 294,196 $ 2007 Q1 Q2 Q3 Q4 Total Combined PDL/Facet revenue 58,856 $ 89,057 $ 61,256 $ 49,756 $ 258,925 $ Facet revenue 9,879 7,975 5,641 10,345 33,840 PDL stand-alone revenue 48,977 $ 81,082 $ 55,615 $ 39,411 $ 225,085 $ 2008 Quarter 2007 Quarter |
 8 8 PDL - Legal & Queen et al. Patents Genentech – settlement in 2003 upheld validity and enforceability of patents Multiple product license with tiered fee structure Option for four additional antigens exercised in 2008 Alexion – settlement in December 2008 upheld validity and enforceability of patents License for Soliris in exchange for $25 million Option for additional licenses at 4% royalty MedImmune – in December 2008, filed declaration of invalidity and non-infringement MedImmune has paid royalties since 1998; most recently for 2009-Q1 sales in May 2009 PDL believes that its exercise of its rights under the MedImmune agreement precludes MedImmune from being entitled to a lower royalty rate because of PDL’s settlement with Alexion UCB Celltech – in September 2008, notified PDL that it does not intend to pay royalties on sales of Cimzia In February 2009, US Patent Office declared an interference proceeding between certain claims of Queen et al. patents and pending claims of Adair et al. UCB Celltech is the assignee of the Adair et al. patent |
 9 9 PDL - Convertible Notes $250 million 2.75% convertible subordinated notes due August 2023 Bought back $50 million in open market purchases Current conversion rate is 123.715 shares per $1,000 face amount ($8.08 per share); will adjust in connection with October dividend Holders have a put right in August 2010, August 2013, and August 2018 Price as of July 31 was 107 vs. stock price of $8.25 $250 million 2.00% convertible senior notes due February 2012 Bought back $5 million in open market purchases Current conversion rate is 89.165 shares per $1,000 face amount or $11.22 per share; will adjust in connection with October dividend Price as of July 31 was 93 vs. stock price of $8.25 |
 10 PDL BioPharma Overview of PDL BioPharma PDL Licensed Royalty Products Outlook & 2009 Guidance Optimizing Stockholder Return |
 11 PDL - Royalty Revenue & Queen et al. Patents PDL’s revenues consist of royalties generated on sales of licensed products: Sold before the expiration of the Queen et al. patents or Made prior to the expiration of the Queen et al. patents and sold anytime thereafter $0 $50 $100 $150 $200 $250 $300 $350 $400 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009E PDL Royalties by Product ($ in millions) Herceptin Avastin Lucentis Synagis Tysabri Aggregate Other |
 PDL - Select Licensed Products 12 Licensee Product Status Indications Roche (Genentech) Avastin Approved Phase 3 Colorectal Cancer NSCLC Metastatic Breast Cancer Gliobastoma Metastatic Renal Cell Carcinoma Ovarian cancer Prostate cancer Adjuvant settings Herceptin Approved Metastatic Breast HER2+ Cancer Lucentis Approved Phase 3 AMD RVO DME Xolair Approved Phase 3 Moderate -Severe Asthma Pediatric Asthma MedImmune Synagis Approved Respiratory Syncytial Virus Elan Tysabri Approved Multiple Sclerosis Roche/Chugai Actemra Approved (EU& Japan) Rheumatoid Arthritis Wyeth Mylotarg Approved Acute Myeloid Leukemia Wyeth/J&J Bapineuzumab Phase 3 Alzheimer’s Disease Lilly Solanezumab Phase 3 Alzheimer’s Disease |
 Licensee Product Status Indications Roche (Genentech) Avastin Approved Phase 3 Colorectal Cancer Metastatic Breast NSCLC Cancer Gliobastoma Metastatic Renal Cell Carcinoma Ovarian cancer Prostate cancer Adjuvant settings Herceptin Approved Metastatic Breast HER2+ Cancer Lucentis Approved Phase 3 AMD RVO DME Xolair Approved Phase 3 Moderate -Severe Asthma Pediatric Asthma MedImmune Synagis Approved Respiratory Syncytial Virus Elan Tysabri Approved Multiple Sclerosis Roche/Chugai Actemra Approved (EU& Japan) Rheumatoid Arthritis Wyeth Mylotarg Approved Acute Myeloid Leukemia Wyeth/J&J Bapineuzumab Phase 3 Alzheimer’s Disease Lilly Solanezumab Phase 3 Alzheimer’s Disease PDL - Select Licensed Products 13 On July 2, Genentech announced that a Phase 3 trial showed Lucentis significantly improved vision in patients with branch retinal vein occlusion at 6 months On July 30, Genentech announced that a Phase 3 trial from a second study showed Lucentis significantly improved vision in patients with central retinal vein occlusion at 6 months |
 PDL - Select Licensed Products 14 Licensee Product Status Indications Roche(Genentech) Avastin Approved Phase 3 Colorectal Cancer NSCLC Metastatic BreastCancer Gliobastoma Metastatic Renal Cell Carcinoma Ovarian cancer Prostatecancer Adjuvant settings Herceptin Approved MetastaticBreast HER2+ Cancer Lucentis Approved Phase 3 AMD RVO DME Xolair Approved Phase 3 Moderate-SevereAsthma Pediatric Asthma MedImmune Synagis Approved Respiratory Syncytial Virus Elan Tysabri Approved MultipleSclerosis Roche/Chugai Actemra Approved (EU& Japan) RheumatoidArthritis Wyeth Mylotarg Approved Acute MyeloidLeukemia Wyeth/J&J Bapineuzumab Phase 3 Alzheimer’s Disease Lilly Solanezumab Phase 3 Alzheimer’s Disease J&J announced that it would buy $1 billion in Elan stock for 50.1% ownership of a new JV to develop treatments for Alzheimer’s Disease, including bapineuzumab J&J also pledged an initial $500 million to fund development of the drugs
|
 15 Agenda Overview of PDL BioPharma PDL Licensed Royalty Products Outlook & 2009 Guidance Optimizing Stockholder Return |
 PDL - 2009 GAAP Guidance 16 Original revenue guidance of $310 - $325 excluding Medlmmune is unchanged, the above revenue guidance includes actual Q1 & Q2 Medlmmune royalties of $36 million Revenue growth driven by product sales of Herceptin, Avastin, Lucentis, and Tysabri Anticipate Q3 & Q4 revenue will benefit form weakening US$ - EUR plan rate was $1.34 vs. current of $1.42 and GBP plan rate was $1.48 vs. Current rate of $1.64 Approximately 50% of the expense forecast due to legal and other professional fees $ in millions Guidance Revenue $345 - $360 Operating Expense 20 - 22 Cash Used by Operating Activities 18 - 20 Net Interest Expense 10 - 12 Net Income before Tax 310 - 330 Income Tax Expense 110 - 115 Net Income after Tax $200 - $215 |
 PDL - Roche/Genentech Royalties 17 Roche/Genentech manufacturing integration Close one of the two CHO manufacturing facilities in Vacaville, CA Avastin & Herceptin E. coli manufacturing to transfer to Singapore in 2011/12 Lucentis PDL could see improvement in mix of royalty rates in future years Product made in US Net sales up to $1.5 billion 3.0% Net sales between $1.5 billion and $2.5 billion 2.5% Net sales between $2.5 billion and $4.0 billion 2.0% Net sales over $4.0 billion 1.0% Product made and sold ex-US All sales 3.0% |
 18 PDL - 2009 Cash Guidance Available NOL at the end of 2008 was $219 million of which $173 will be used in 2009 Of the total NOL, $46.8 million is due to the EOS Biotech acquisition in 2003 The section 382 limitation on the use of the EOS NOL is $24.2 million in 2009 and $1.8 million per year thereafter Available tax credits at the end of 2008 were $36 million: When using tax credits, the minimum effective tax rate on net income after NOL is 20% Remaining tax credits of $12+ million will be used in the upcoming year $ in millions Net Income before Tax $310 $330 Available NOL 173 173 Net Income after NOL 137 157 Tax @ 35% (48) (55) Tax Credits 21 24 Net Income after Tax 285 $ 300 $ Cash Guidance |
 19 Overview of PDL BioPharma PDL Licensed Royalty Products Outlook & 2009 Guidance Optimizing Stockholder Return PDL BioPharma |
 20 PDL - Optimizing Stockholder Return Intend to distribute royalty revenues, net of operating expenses, debt service and income taxes Declared dividend of $0.50 per share paid on April 1, 2009 Declared dividend of $0.50 per share payable on October 1, 2009 to shareholders of record as of September 17, 2009 In the process of evaluating alternatives Convertible note buyback – gain is taxable but deferrable for 5 years under the American Recovery and Reinvestment Act of 2009 Share repurchases Sale of all or a portion of royalty assets Securitization – formation of SPV and bond issuance |
 21 PDL - Investment Rationale Strong revenue growth from approved products Potential for additional indications from existing products and new product approvals Significantly reduced expenses with no R&D burn Return to stockholders Declared two dividends totaling $1.00 in 2009 Actively exploring other means to enhance stockholder return |
 22 PDL BioPharma |