PDL BioPharma declares $502 million dividend, plans to spin off biotechnology assets

By Lisa Kerner

Charlotte, N.C., April 10 - PDL BioPharma, Inc.'s board of directors declared a special cash dividend of $4.25 per share of common stock and will distribute approximately $502 million to stockholders of record on May 5 using proceeds from recent asset sales.

PDL sold its commercial and cardiovascular products, as well as its biologics manufacturing facility.

The board also decided that the Wilmington, N.C., pharmaceutical company will separate its antibody humanization royalty assets from its biotechnology operations by the end of 2008, a PDL news release said.

PDL said it will spin off its biotechnology assets into a separate publicly traded entity, allowing investors to realize "the value of each asset fully and independently."

According to the news release, PDL expects to capitalize the new company with some $375 million of cash at the completion of the transaction.

As of Dec. 31, PDL's cash, cash equivalents, marketable securities and restricted cash and investments totaled $440.8 million, the release said.

PDL said it will continue to hold the rights to antibody humanization royalty revenues from all current and future licensed products following the spinoff.

The company expects 2008 royalty revenues to be $240 million to $260 million.

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