INCLINE VILLAGE, Nev.,
Sept. 9, 2020 /PRNewswire/
-- PDL BioPharma, Inc. ("PDL" or the "Company") (Nasdaq: PDLI)
announces the closing of the sale of its wholly owned subsidiaries
Noden Pharma DAC and Noden Pharma USA (collectively "Noden") to Stanley Capital.
The total value of the transaction will result in payments to
PDL of up to $52.83 million in cash,
$4.58 million greater than previously
announced.
"After running an extensive process, we are excited about
closing this transaction with Stanley Capital," commented PDL's
President and CEO Dominique
Monnet. "It represents the completion of a key
divestiture for PDL and an exciting opportunity for the Noden
team."
Payments to PDL, in connection with the closing of the
transaction, are $12.72 million.
The agreement provides for an additional $33 million to be paid to PDL in 12 equal
quarterly installments from January
2021 to October 2023 and two
potential contingent payments totaling $3.25
million. There is an additional $3.86 million to be paid to PDL in four equal
quarterly installments from January
2023 to October 2023, due
primarily to the incremental cash accumulated in the business since
July 31, 2020.
Together with their advisors, Torreya and SVB Leerink, PDL's
board of directors and management team evaluated a number of
potential transactions to maximize stockholder value for
Noden. Torreya was retained by PDL to explore potential
strategic transactions and assist in the disposition of Noden,
while SVB Leerink has been engaged by PDL to advise on overall
liquidation and distribution strategies.
In addition to the cash proceeds from the sale to Stanley
Capital, PDL believes that this transaction may qualify for some
Federal tax benefit 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.
About Noden
Noden Pharma DAC is a global specialty pharmaceutical company
that is focused on acquiring prescription medicines across a range
of therapeutic areas. Noden Pharma DAC holds exclusive
worldwide rights to manufacture, market and sell Tekturna® and
Tekturna HCT® (or Rasilez® and Rasilez HTC® outside of the United States), which contain aliskiren, a
direct renin inhibitor, for the treatment of hypertension. In
March 2019, Noden announced the U.S
commercial launch of an authorized generic form of Tekturna,
aliskiren hemifumarate 150 mg and 300 mg tablets with the same drug
formulation as Tekturna. Noden Pharma DAC is headquartered in
Dublin, Ireland and Noden Pharma
USA Inc. is incorporated in
Delaware. For more information on Noden Pharma DAC please
visit www.nodenpharma.com.
About Stanley Capital
Stanley Capital is a private equity partnership pursuing
repeatable relative value and thematic investment strategies in
technology, healthcare, and sustainability, targeting businesses
with Enterprise Values of $250mn to
$2.5bn.
Stanley Capital is focused on high-quality platform companies in
resilient and growth subsectors, identified through deep sector
research and operating networks, working with management teams to
transform investments through enabling growth and market
consolidation.
The partnership was founded in London in 2019 by Simon Cottle, James
Brooks and Patrick Hargutt and is supported by a broad team
of operating partners to assist with value creation execution.
For more information please
visit https://stanley-capital.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.