INCLINE VILLAGE, Nev.,
Dec. 9, 2019 /PRNewswire/ -- PDL
BioPharma, Inc. ("PDL" or the "Company") (Nasdaq: PDLI) announced
today that it has completed the strategic review process that it
initiated in September. As a result, the Company has decided
to halt the execution of its growth strategy, cease additional
strategic investments and pursue a formal process to unlock value
by monetizing the Company's assets and returning net proceeds to
shareholders.
The process will be led by PDL's management team and overseen by
a newly formed committee of its Board of Directors. PDL will
explore a variety of potential transactions, including a sale of
the Company, divestiture of its assets or businesses, a spin-off
transaction, a merger or a combination thereof. Net proceeds
obtained from any such transaction will ultimately be distributed
to PDL's shareholders in the form of share repurchases, dividends
or other means to be determined. The process will be
conducted in a disciplined and cost-effective manner that seeks to
maximize returns to shareholders. The Company has not yet
established a definitive timeframe for completing this process.
BofA Securities and MTS Health Partners, L.P. acted as
financial advisors to the Company in connection with its strategic
review.
Dominique Monnet, President and
CEO of PDL, said, "Today's announcement reflects our efforts to
continually assess and do what is best for our shareholders.
Although there is potential to build significant value with the
Company's current healthcare growth strategy, we recognize the
inherent execution risk and the long-term nature of such an
approach. After a careful and thorough review of our
strategic options, we have concluded that a monetization process
will unlock value more quickly and with greater certainty for the
benefit of all PDL shareholders. Accordingly, we will cease
additional strategic investments and instead will look to monetize
our high-quality asset portfolio and distribute net proceeds to our
shareholders."
Dr. Barry Selick, chairman of the
Board of PDL, said, "The Board has worked diligently with PDL's
leadership team and our advisors to evaluate a full range of
alternatives to optimize the value of our assets. The
decision we announced today is consistent with our 30-year track
record of shareholder value creation. On behalf of the entire
Board, I would like to thank our team for their hard work and
success assembling a high-quality portfolio of assets and leading
the optimum way forward in the best interest of our
shareholders."
As it implements the plan described above, PDL will continue to
support the continued growth of LENSAR and the development of its
second-generation technology. PDL believes Evofem is
well-positioned for continued success and is confident in the value
of its investment in that company.
The Company noted that there can be no assurance that one or
more transactions will result from this process. PDL does not
intend to comment further on the process unless and until it
determines that it is necessary or appropriate to do so.
PDL Board of Directors Authorizes Common Stock and
Convertible Note Repurchase Program
In conjunction with today's announcement, PDL's Board has
authorized the repurchase of issued and outstanding shares of the
Company's common stock and convertible notes up to an aggregate
value of $200 million. PDL has
engaged BofA Securities to assist the Company in this repurchase
program. Purchases may be made in open-market transactions,
in block transactions on or off an exchange, in privately
negotiated transactions or by other means as determined by PDL's
management and in accordance with the regulations of the Securities
and Exchange Commission. The repurchase program does not
obligate PDL to acquire any specific number of shares or notes and
may be suspended or terminated at any time.
Conference Call and Webcast
PDL will hold a conference call at 9:00
a.m. Eastern time today.
To access the live conference call via phone, please dial
800-608-8202 from the U.S. and Canada or 702-495-1913 internationally. The
conference ID is 4166582. A telephone replay will be
available beginning approximately one hour after the call through
one week following the call and can be accessed by dialing
855-859-2056 from the U.S. and Canada or 404-537-3406 internationally. The
replay passcode is 4166582.
To access the live and subsequently archived webcast of the
conference call, go to the Investor Relations section of
www.pdl.com and select "Events & Presentations."
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. For more
information please visit www.pdl.com.
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. 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 are disclosed in the risk factors contained in the
Company's Annual Report on Form 10-K, filed with the Securities and
Exchange Commission on March 15, 2019
and subsequent filings. All forward-looking statements are
expressly qualified in their entirety by such factors. We do not
undertake any duty to update any forward-looking statement except
as required by law.
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SOURCE PDL BioPharma, Inc.