Notable News Spotlight: PDL BioPharma(Nasdaq:PDLI)

PDL BioPharma (Nasdaq:PDLI) spotted trading -26.22% off 52-week high price. On the other end, the stock has been noted 27.56% away from the low price over the last 52-weeks. The stock changed -2.05% to recent value of $2.87. The stock transacted 959024 shares during most recent day however it has an average volume of 1082.16K shares. The company has 123.26M of outstanding shares and 117.44M shares were floated in the market.  

On Aug. 7, 2019, PDL BioPharma(Nasdaq:PDLI) released financial results for the three and six months ended June 30, 2019:

Second Quarter and Recent Financial Highlights

•           Generally Accepted Accounting Principles (GAAP) net loss attributable to PDL’s shareholders of $4.4 million or $0.04 per share.

•           Non-GAAP net income attributable to PDL’s shareholders of $12.7 million. A reconciliation of GAAP to non-GAAP financial results can be found in Table 3 at the end of this news release.

•           Cash and cash equivalents of $284.9 million as of June 30, 2019.

•           Invested $60.0 million in Evofem Biosciences (Evofem) in the second quarter of 2019.

•           Investment in Evofem resulted in an unrealized gain of $45.5 million due to the significant increase in Evofem’s stock price at the end of the second quarter of 2019.

•           Repurchased 8.0 million shares of common stock in the open market during the second quarter of 2019 for $26.0 million. The $100 million share repurchase program was completed in July 2019.

Our investment in Evofem reflects our strategic shift with a focus on applying our capital and expertise to support the successful development and commercialization of innovative therapeutics by our partner companies, said Dominique Monnet, president and CEO of PDL. We are transitioning away from our legacy portfolio of passive investments to build a focused portfolio of actively managed companies with exciting revenue growth potential.

Indeed, a highlight of the second quarter is the completion of our $60 million equity investment in Evofem Biosciences, he added. We are committed to working with Evofem’s experienced and inspired management team to support the successful launch of its flagship product, Amphora®, with the ultimate goal of building the company into a leader in women’s health. This investment is a strong fit with our mission of creating value for shareholders and patients alike by enabling partner companies to maximize the potential of their novel therapeutics that address underserved needs. We expect to have an active role in managing this investment, as I have been appointed to the Evofem board of directors and PDL also has a board observer.

We see significant revenue potential with Evofem’s investigational non-hormonal, on-demand contraceptive, Amphora, which addresses a considerable market opportunity, Monnet continued. Evofem is preparing for a U.S. commercial launch in 2020, subject to FDA product approval, and has a well-defined commercial strategy designed to maximize product adoption and a strong balance sheet to support precommercial activities.

The disappointing non-cash writedown of the fair market value of the AcelRx royalty asset underlines the importance of shifting our business model from passive investments to actively managed assets. We are pleased with the continued performance of our operating companies, Noden and LENSAR, which are both on target with the execution of their 2019 plans. We continue to receive significant royalties from the Assertio royalty asset and have ample cash on hand to execute on our business strategy. We expect cash flow generated by our current business will be in excess of our operational needs, thereby providing additional cash to invest in our future. We continue to review numerous opportunities and consider a broad range of potential transactions to build our portfolio, concluded Monnet.

 Its earnings per share (EPS) expected to touch remained -166.30% for this year while earning per share for the next 5-years is expected to reach at 14.00%. PDLI has a gross margin of 74.50% and an operating margin of -22.40% while its profit margin remained -32.10% for the last 12 months. 

 According to the most recent quarter its current ratio was 11 that represents company’s ability to meet its current financial obligations. The price moved ahead of -5.65% from the mean of 20 days, -4.98% from mean of 50 days SMA and performed -8.81% from mean of 200 days price. Company’s performance for the week was -0.35%, -8.89% for month and YTD performance remained -1.03%.

Leave a Reply

Your email address will not be published. Required fields are marked *