Drug Company Splits To Remain Competitive
April 11, 2008
PDL Biopharma Inc announced that it will pay a dividend to any shareholder of about $4.25 US dollars after it will split the company.
This will bring the cash benefits of the new company to $375 million US dollars.
The company has an initial cash injection, as well as potential milestone payments, royalties, and sales of its cardiovascular products for the past three years.
After the company is split, it will collect revenue from existing and future royalties of all licensed products. This will distributed as profits to shareholders. The company believes it can achieve sales of more than $240 to $260 million US dollars.
These sales will be on a variety of products, including: Genentech’s cancer drug, and sales of Elan Pharmaceuticals drug Tysabri.