PDL BioPharma

US: PDLI

$474m market cap

$3.7 last close

PDL has reinvented itself through a three-pronged strategy: investing in royalty streams of marketed and development-stage therapeutics and providing high-yield debt financing to device & diagnostic companies with near-term product launches.

Investment summary

PDL BioPharma is a healthcare-focused company with a three-pronged strategy: investing in royalty streams, providing high-yield financing to life science companies with near-term product launches as well as purchasing approved drugs to be sold by Noden Pharma. This strategy allows investors to gain exposure in healthcare through a relatively low-risk, diversified vehicle. PDL reported Q318 revenues of $67.9m, up 8.2% compared to Q317 and up 45.8% sequentially, with that growth mainly due to an increase in the fair value of the Assertio (formerly Depomed) royalty rights. Lee’s Pharmaceutical Holdings, Noden’s partner in China, is expected to launch Tekturna/Rasilez in H119. The company recently announced a $100m stock repurchase plan which could buy back over a quarter of shares outstanding.

Y/E Dec
Revenue (US$m)
EBITDA (US$m)
PBT (US$m)
EPS (c)
P/E (x)
P/CF (x)
2016A 244.3 193.1 175.5 77.72 4.8 6.0
2017A 320.1 218.8 200.3 81.33 4.5 14.2
2018E 189.4 71.8 66.1 46.11 8.0 N/A
2019E 126.9 31.9 34.9 20.65 17.9 N/A
Last updated on 20/03/2019
Industry outlook

PDL BioPharma is one of the only companies that will give broad exposure to diverse royalty streams as well as corporate debt and high margin approved products.

Last updated on 20/03/2019
Sector
Healthcare
Share price graph
Balance sheet
Forecast net cash (US$m) 321.8
Forecast gearing ratio (%) N/A
Price performance
%
1m
3m
12m
Actual 5.7 38.1 31.7
Relative* 4.2 20.6 26.7
52-week high/low US$3.8/US$2.3
*% relative to local index
Key management
John Mclaughlin CEO
Peter Garcia CFO