INCLINE VILLAGE, Nev.,
Aug. 31, 2020 /PRNewswire/
-- PDL BioPharma, Inc. ("PDL" or the "Company") (Nasdaq: PDLI)
announces the signing and closing of a definitive agreement for the
sale of three royalty interests for Kybella®,
Zalviso®, and Coflex® (collectively the
"Royalties") to SWK Funding, LLC ("SWK"), a wholly owned subsidiary
of SWK Holdings Corporation (Nasdaq: SWKH), in exchange for PDL to
receive $4.35 million in cash.
"The sale of these Royalties to SWK represents another step in
the execution of our monetization strategy," commented PDL's
President and CEO Dominique
Monnet. "This transaction is expected to generate
meaningful benefits for our stockholders as we move toward
liquidation and dissolution."
In addition to the cash proceeds from the sale to SWK, PDL
believes that this transaction may qualify for Federal tax benefits
under the CARES Act. In connection with its monetization
process, PDL expects to execute transactions in 2020 that may
result in the recognition of ordinary tax losses that, under the
CARES Act, could be applied to prior tax years in which PDL was a
substantial tax payor. At this time, however, there can be no
assurance that such tax benefits will be realized.
BofA Securities, Inc. acted as sole structuring advisor to PDL
for the transaction. BofA Securities, Inc. will
continue the sale process for the Company's royalty interests in
Glumetza®, Jentadueto® XR,
Invokamet® XR, and Synjardy® XR
(collectively "the Assertio Royalties") and the remaining royalty
interest in Cerdelga®.
About SWK Holdings Corporation
SWK Holdings
Corporation ("SWK Holdings") is a specialized finance company with
a focus on the global healthcare sector. SWK Holdings partners with
ethical product marketers and royalty holders to provide flexible
financing solutions at an attractive cost of capital to create
long-term value for both SWK Holdings' business partners and its
investors. SWK Holdings believes its financing structures achieve
an optimal partnership for companies, institutions and inventors
seeking capital for expansion or capital and estate planning by
allowing its partners to monetize future cash flow with minimal
dilution to their equity stakes. SWK Holdings also owns Enteris
Biopharma, whose core Peptelligence™ drug delivery technology
creates oral formulations of peptide-based and BCS class II, III,
and IV small molecules. With Enteris, SWK Holdings has the
opportunity to grow its specialty finance business by actively
building a wholly owned portfolio of milestones and royalties
through licensing activities. Additional information on the life
science finance market is available on SWK Holdings' website at
www.swkhold.com.
About PDL BioPharma, Inc.
Throughout its history,
PDL's mission has been to improve the lives of patients by aiding
in the successful development of innovative therapeutics and
healthcare technologies. PDL BioPharma was founded in 1986 as
Protein Design Labs, Inc. when it pioneered the humanization of
monoclonal antibodies, enabling the discovery of a new generation
of targeted treatments that have had a profound impact on patients
living with different cancers as well as a variety of other
debilitating diseases. In 2006, the Company changed its name
to PDL BioPharma, Inc.
As of December 2019, PDL ceased
making additional strategic transactions and investments and is
pursuing a formal process to unlock the value of its portfolio by
monetizing its assets and ultimately distributing net proceeds to
stockholders in the form of cash or equity.
For more information please visit https://www.pdl.com/
NOTE: PDL, PDL BioPharma, the PDL logo and associated
logos and the PDL BioPharma logo are trademarks or registered
trademarks of, and are proprietary to, PDL BioPharma, Inc. which
reserves all rights therein.
Forward-looking Statements
This press release contains "forward-looking statements" within
the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended, including as it relates to the Company's proposed plan of
complete liquidation, proposed dissolution or transactions
thereunder. 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. Important factors that could impair the value of
the Company's assets and business, including the implementation or
success of the Company's monetization strategy/plan of complete
liquidation and proposed dissolution, are disclosed in the risk
factors contained in the Company's Annual Report on Form 10-K filed
with the SEC on March 11, 2020 and
Quarterly Reports on Form 10-Q, filed with the SEC on May 11, 2020 and August
20, 2020, and subsequent filings. All
forward-looking statements are expressly qualified in their
entirety by such factors. The Company does not undertake any
duty to update any forward-looking statement except as required by
law.
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SOURCE PDL BioPharma, Inc.