Highland Capital continues to monitor PDL BioPharma

By Lisa Kerner

Charlotte, N.C., Oct. 29 - PDL BioPharma, Inc. investor Highland Capital Management, LP said it may continue "to engage in discussions with management, the board of directors, other stockholders of the issuer and other relevant parties concerning the business, operations, board composition, management, strategy and future plans" of PDL BioPharma, according to a schedule 13D filing with the Securities and Exchange Commission.

Highland owns 6,111,699 shares, or 5.2%, of PDL BioPharma's outstanding stock, up from its 4.7% stake reported in September.

As previously reported, Highland, in a Sept. 25 letter, urged the company's board of directors to sell PDL BioPharma. The investor also called for the immediate resignations of Dr. Patrick Gage as chairman and Mark McDade as chief executive officer of the Wilmington, N.C., pharmaceutical company.

In its letter, Highland also recommended that:

• The board seek additional expertise in evaluating alternatives for the royalty stream;

• PDL BioPharma move to sell and not reconfigure into an early stage developmental company;

• Dr. Laurence Korn take over as chairman;

• An independent board member be added to fill the vacancy left by Dr. Samuel Broder's resignation; and

• PDL BioPharma issue a press release that "lucidly communicates" that it is "diligently and expeditiously working to sell the entire company."

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