INCLINE VILLAGE, Nev.,
Aug. 1, 2016 /PRNewswire/ -- PDL
BioPharma, Inc. (PDL or the Company) (NASDAQ: PDLI) today announced
that it has funded the second tranche of $50
million to ARIAD Pharmaceuticals, Inc. (ARIAD) (NASDAQ:
ARIA) which was due on the first anniversary of the closing date
under the terms of the ARIAD Royalty Agreement. This agreement was
entered into in July 2015, in
exchange for royalties on the net revenues of Iclusig®
(ponatinib). As a result of the second tranche payment, under
the terms of the ARIAD Royalty Agreement, PDL's royalty
percentage will increase to 5.0% of the U.S. and European net
revenues of Iclusig and 5.0% of the payments ARIAD receives
elsewhere in the world until December 31,
2018 (subject to agreed-upon annual maximum payments).
Beginning January 1, 2019 and
thereafter, the royalty rate will increase to 6.5% in all
jurisdictions and continue until December
31, 2033, subject to a put option of PDL upon the occurrence
of specified events and a call option of ARIAD.
In May of 2016, PDL and ARIAD agreed to amend the ARIAD Royalty
Agreement, as a result of ARIAD's share purchase agreement with
Incyte Corporation (Incyte), to include net sales of Iclusig made
by Incyte once it takes over ARIAD's commercialization operations
with respect to Iclusig in the European Union and certain other
countries. In addition, the Company and ARIAD agreed to restructure
future funding under the Royalty Agreement such that ARIAD's option
to draw up to an additional $100
million between January and July of 2016 was reduced to a
maximum amount of up to an additional $40
million, which can be drawn at ARIAD's option in July of
2017.
About PDL BioPharma, Inc.
PDL seeks to acquire pharmaceutical products through equity
investments and also provide growth capital and financing solutions
to late-stage public and private healthcare companies, including
immediate financial monetization of royalty streams to companies,
academic institutions, and inventors. PDL has committed over
$1.4 billion and funded approximately
$1.1 billion in these investments to
date. PDL evaluates its investments based on the quality of the
income generating assets and potential returns on investment. PDL
is currently focused on acquiring and managing income generating
assets, and maximizing value for its stockholders.
The Company was formerly known as Protein Design Labs, Inc. and
changed its name to PDL BioPharma, Inc. in 2006. PDL was founded in
1986 and is headquartered in Incline
Village, Nevada. PDL pioneered the humanization of
monoclonal antibodies and, by doing so, enabled the discovery of a
new generation of targeted treatments for cancer and immunologic
diseases for which it receives significant royalty revenue. For
more information, please visit www.pdl.com.
PDL BioPharma and the PDL BioPharma logo are considered
trademarks of PDL BioPharma, Inc.
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SOURCE PDL BioPharma, Inc.