- Company provides updated 2006 financial guidance -
FREMONT, Calif., Nov. 2 /PRNewswire-FirstCall/ -- PDL BioPharma, Inc.
(PDL) (Nasdaq: PDLI) today reported financial results for the third quarter
and the nine months ended September 30, 2006:
* Total revenues for the third quarter of 2006 rose 44 percent to
$111.4 million from $77.1 million in the same period of 2005. Third
quarter 2006 revenues included $18.8 million in deferred licensing,
collaboration and other revenues recognized as a result of the
discontinuation of the Roche collaboration for daclizumab in asthma.
* GAAP net loss was $6.7 million, or $0.06 per basic and diluted
share, in the third quarter of 2006, compared with a GAAP net loss
of $45.2 million, or $0.43 per basic and diluted share, in the third
quarter of 2005.
* Non-GAAP net income was $26.5 million, or $0.23 per basic and
diluted share, for the third quarter of 2006, from a non-GAAP net
loss of $4.7 million, or $0.04 per basic and diluted share, in the
third quarter of 2005.
* Cash flow generated from operating activities for the first nine
months of 2006 was $73.0 million, compared to $13.6 million in the
first nine months of 2005. The company ended the third quarter of
2006 with cash, cash equivalents, marketable securities and
restricted cash and investments of $422.3 million compared to $333.9
million at December 31, 2005.
"During the third quarter, increases in Cardene IV sales and strong
partner-driven royalties continued to propel our underlying revenue
growth," PDL BioPharma Chief Executive Officer Mark McDade said. "Our
non-GAAP profit for the quarter reflects the continued positive impact of
our newly diversified revenue stream and bottom-line focus, as well as the
recognition of revenues related to the discontinuation of the Roche asthma
collaboration. At the same time, we remain more focused than ever on
advancing our lead clinical-stage programs, with the Nuvion program in IV
steroid refractory ulcerative colitis tracking towards its next milestone
anticipated in the second quarter of 2007."
Revenues
Total revenues for the third quarter of 2006 consisted of product
sales, royalties and license, collaboration and other revenues.
* Net product sales in the third quarter of 2006 were $41.1 million.
Net product sales for the same period during 2005 totaled $43.6
million, of which $38.4 million were attributable to Cardene(R)
I.V., Retavase(R) and IV Busulfex. Net product sales during 2005
included $5.2 million in sales of four off-patent products that were
divested during the first quarter of 2006.
* Cardene net sales were $28.7 million in the third quarter of
2006, a 34 percent increase from $21.5 million for the same
period in 2005. Included in the third quarter 2006 net sales
were $0.3 million in sales of Cardene SR, the rights to which
the company acquired from Roche in September 2006.
* Retavase net sales were $7.2 million in the third quarter of
2006, a decrease from $11.6 million for the third quarter of
2005 due to challenging market conditions and a continued
decline in the thrombolytic market over this period.
* IV Busulfex net sales were $5.2 million in the third quarter of
2006, compared to $5.4 million for the same period in 2005.
* Royalty revenues for the third quarter of 2006 increased 64 percent
to $42.5 million, compared with $26.0 million in the comparable
period in 2005. Royalty revenues during the third quarter of 2006
reflect royalties PDL received based on worldwide net sales of seven
antibody products licensed under PDL's antibody humanization
patents: Avastin(TM), Herceptin(R), Xolair(R), Raptiva(R) and
Lucentis(TM) from Genentech, Inc.; Synagis(R) from MedImmune, Inc.
and Mylotarg(R) from Wyeth. Royalty revenues during the third
quarter did not reflect sales of Tysabri(R), which was recently
relaunched; PDL expects to begin receiving royalties from such sales
in the fourth quarter.
* License, collaboration and other revenues during the third quarter
of 2006 increased to $27.8 million from $7.5 million in the same
period of 2005, primarily as a result of the recognition in the
third quarter of 2006 of $18.8 million in deferred revenue that the
company would have recognized over the course of several years were
it not for the discontinuation of the company's co-development
collaboration with Roche for daclizumab in asthma.
Costs and Expenses
Total costs and expenses were $119.3 million in the third quarter of
2006, compared with $120.0 million in the third quarter of 2005. On a
non-GAAP basis, total costs and expenses in the third quarter of 2006 were
$84.9 million compared to $81.9 million in the third quarter of 2005.
* Cost of product sales was $17.4 million in the third quarter of 2006
compared to $22.2 million in the same period in 2005. Non-GAAP cost
of product sales, which excludes amortization of product rights, was
$6.8 million in the third quarter of 2006, a decrease from $10.3
million in the comparable 2005 period on the same basis. The
decrease in cost of product sales as a percentage of product sales
was due to a more profitable product mix, particularly with respect
to higher sales of Cardene IV, which has higher margins than the
company's other marketed products, a lower average royalty rate paid
on sales of Cardene IV, and lower manufacturing and inventory-
related costs when compared to the 2005 period.
* Research and development (R&D) expenses increased to $70.9 million
in the third quarter of 2006, compared with $49.5 million in the
third quarter of 2005. Research and development expenses in the
third quarter of 2006 included a $5.6 million charge incurred in
connection with the company's acquisition in September 2006 of
certain Cardene-related rights from Roche. On a non-GAAP basis, R&D
expenses in the third quarter of 2006 were $54.8 million, an
increase over the $45.3 million reported in the same period in the
prior year due primarily to expanded clinical development activities
associated with Nuvion.
* Selling, general and administrative (SG&A) expenses were $26.7
million during the third quarter of 2006, compared with $26.8
million in the third quarter of 2005. Non-GAAP SG&A expenses were
$23.3 million compared to $26.3 million in the prior year comparable
period.
* Third quarter 2006 expenses included $6.0 million in stock-based
compensation expenses, a significant increase over the $0.2 million
incurred in the same period in the prior year principally as a
result of the adoption of Statement of Financial Accounting
Standards (SFAS) No. 123( R ) on January 1, 2006.
2006 Financial Outlook
PDL BioPharma is updating its guidance for the full year 2006 to
reflect actual results for the first nine months of the year and its
outlook for the fourth quarter.
* PDL is refining its full year revenue guidance to a range of between
$405 million and $420 million, within the prior guidance range of
between $400 million and $430 million. The company is updating its
expectations for the revenue components as follows: net product
sales of $162 million to $167 million, lower than prior guidance
primarily due to the disappointing performance of Retavase; royalty
revenues of $183 million to $185 million, an increase from previous
guidance due to the continued success of the company's licensees'
product sales; and licensing, collaboration and other revenues of
$60 million to $68 million.
* PDL expects full year cost of product sales, excluding amortization
of product rights, to be approximately 23% as a percentage of net
product sales.
* On a non-GAAP basis, PDL expects total R&D and SG&A expenses in 2006
to be between $311 million and $319 million, a decrease from the
company's prior guidance of between $350 million and $365 million.
* The company now expects R&D expenses of $216 million to $221
million, lower than prior guidance due primarily to recent
strategic decisions to slow development activities for the
ularitide and daclizumab asthma clinical programs until
partnerships are secured.
* SG&A expenses of $95 million to $98 million, a range that is
within the company's previously issued guidance.
* For the full year 2006, PDL expects non-GAAP net income of $55
million to $60 million or, on a diluted per share basis, $0.47 to
$0.51 based on a weighted average number of shares outstanding for
the year of approximately 118 million. This exceeds the company's
previously stated range of $8 million to $23 million of non-GAAP net
income.
This forward-looking guidance excludes certain other expenses based on
current estimates for the full year 2006, including the impact of
stock-based compensation expenses of $23 million to $25 million,
depreciation of property and equipment of $30 million to $32 million and
amortization of intangible assets of approximately $45 million. In
addition, this non-GAAP guidance excludes the following charges recognized
through the third quarter of 2006: $5.9 million in other-acquisition
related charges related to ESP Pharma operations prior to the company's
acquisition of the business and product sales returns of Retavase from
sales made prior to the acquisition of the rights to Retavase in March
2005; a $5.6 million charge incurred in connection with the company's
acquisition in September 2006 of certain Cardene-related rights from Roche;
a $4.1 million charge in the first quarter of 2006 related to the sale of
the company's off-patent products; and $2.6 million in asset impairment
expenses. It also excludes the impact of interest income and other, net,
interest expense and income taxes, the aggregate impact of which the
company expects to have an income positive effect of approximately $3
million in 2006.
Non-GAAP Financial Information
The non-GAAP financial measures in this press release exclude
depreciation of property and equipment, stock-based compensation expense,
amortization of intangible assets, interest income and other, net, interest
expense, income taxes and certain other items that would otherwise be
included if measured in accordance with generally accepted accounting
principles (GAAP). PDL's management believes that these non-GAAP financial
measures serve as a measure of the performance of PDL's ongoing core
operations. A description of the non- GAAP financial measures for the
periods presented and a reconciliation of this information to the GAAP
financial measures are included in the attached financial tables.
Forward-looking Statements
This press release contains forward-looking statements involving risks
and uncertainties and PDL's actual results may differ materially from
those, express or implied, in the forward-looking statements. The
forward-looking statements include PDL's expectations regarding financial
results, PDL's expectations regarding the continuation of existing and new
collaborative agreements, and the timing of clinical developments as well
as other statements regarding PDL's expectations. Factors that may cause
differences between current expectations and actual results include, but
are not limited to, the following: The continued execution of a
biopharmaceutical business model; changes in PDL's development plans as PDL
and its collaborators consider development plans and alternatives; factors
affecting the clinical timeline such as enrollment rates and availability
of clinical materials; fluctuations in sales that may result from PDL's
integration of newly acquired operations; changes in the market due to
alternative treatments or other actions by competitors; and variability in
expenses particularly on a quarterly basis, due, in principal part, to
total headcount of the organization and the timing of expenses. In
addition, PDL's revenues depend on the success and timing of sales of PDL's
licensees, including in particular the continued success of Avastin and
Herceptin from Genentech, Inc. as well as the seasonality of sales of
Synagis from MedImmune, Inc. In addition, quarterly revenues may be
impacted by PDL's ability to maintain and increase its revenues from
collaborative arrangements such as its co-development agreements with
Biogen Idec and Roche. PDL's net income will be affected by state and
federal taxes, and its revenues and expenses would be affected by new
collaborations, material patent licensing arrangements or other strategic
transactions.
Further, there can be no assurance that results from completed and
ongoing clinical studies will be successful or that ongoing or planned
clinical studies will be completed or initiated on the anticipated
schedules. Other factors that may cause PDL's actual results to differ
materially from those expressed or implied in the forward-looking
statements in this press release are discussed in PDL's filings with the
Securities and Exchange Commission (SEC), including the "Risk Factors"
sections of its annual and quarterly reports filed with the SEC. Copies of
PDL's filings with the SEC may be obtained at the "Investors" section of
PDL's website at http://www.pdl.com. PDL expressly disclaims any obligation
or undertaking to release publicly any updates or revisions to any
forward-looking statements contained herein to reflect any change in PDL's
expectations with regard thereto or any change in events, conditions or
circumstances on which any such statements are based for any reason, except
as required by law, even as new information becomes available or other
events occur in the future. All forward-looking statements in this press
release are qualified in their entirety by this cautionary statement.
About PDL BioPharma
PDL BioPharma, Inc. is a biopharmaceutical company focused on
discovering, developing and commercializing innovative therapies for severe
or life- threatening illnesses. The company currently markets and sells a
portfolio of leading products in the acute-care hospital setting in the
United States and Canada and generates royalties through licensing
agreements with top-tier biotechnology and pharmaceutical companies based
on its pioneering antibody humanization technology. Currently, PDL's
diverse product pipeline includes investigational compounds in Phase 2 or
Phase 3 clinical development for inflammation and autoimmune diseases,
cardiovascular disorders and cancer. The company's research platform is
focused on the discovery and development of antibodies for the treatment of
cancer and autoimmune diseases. For more information, please see PDL's
website at http://www.pdl.com.
NOTE: PDL BioPharma, the PDL BioPharma logo, Retavase and Busulfex are
considered trademarks and Cardene and Nuvion are registered U.S. trademarks
of PDL BioPharma, Inc. Herceptin and Raptiva are registered trademarks and
Avastin and Lucentis are trademarks of Genentech, Inc. Xolair is a
registered trademark of Novartis AG. Synagis is a registered trademark of
MedImmune, Inc. Mylotarg is a registered trademark of Wyeth. Tysabri is a
registered trademark of Elan Pharmaceuticals, Inc.
PDL BIOPHARMA, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
(unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
2006 2005 2006 2005
REVENUES:
Product sales, net $41,064 $43,594 $117,650 $83,094
Royalties 42,533 26,003 140,524 96,695
License, collaboration and other 27,795 7,536 48,754 17,127
Total revenues 111,392 77,133 306,928 196,916
COSTS AND EXPENSES:
Cost of product sales 17,433 22,209 61,874 43,481
Research and development 70,880 49,480 195,263 125,080
Selling, general and
administrative 26,672 26,795 84,167 54,267
Acquired in-process research and
development - - - 79,417
Other acquisition-related charges 2,615 6,266 5,910 9,473
Asset impairment charges 1,656 15,225 2,556 15,225
Total costs and expenses 119,256 119,975 349,770 326,943
Operating loss (7,864) (42,842) (42,842) (130,027)
Interest income and other, net 5,042 2,027 12,436 6,835
Interest expense (3,693) (2,671) (9,465) (7,522)
Loss before income taxes (6,515) (43,486) (39,871) (130,714)
Income tax expense 208 1,680 441 1,767
Net loss $(6,723) $(45,166) $(40,312) $(132,481)
NET LOSS PER SHARE:
Basic and diluted $(0.06) $(0.43) $(0.36) $(1.30)
Weighted average shares -- basic
and diluted 113,868 105,272 113,293 101,910
In addition to the consolidated financial statements presented in
accordance with GAAP, PDL uses non-GAAP measures of operating performance,
which are adjusted from results based on GAAP to exclude depreciation of
property and equipment; stock-based compensation expense; amortization of
intangible assets; interest income and other, net; interest expense; income
taxes and certain other miscellaneous items. PDL believes that the non-GAAP
results provide added insight into its performance by focusing on results
generated by its ongoing core operations. PDL uses the non-GAAP results
when assessing the performance of its ongoing core operations, in making
resource allocation decisions and for planning and forecasting.
Additionally, PDL considers these non-GAAP results in awarding bonus and
other incentive compensation to its employees, including management. The
non-GAAP financial measures should be considered in addition to, not as a
substitute for, or superior to, the measures of financial performance
prepared in accordance with GAAP. Investors are encouraged to review the
reconciliation of the non-GAAP financial measures to their most directly
comparable GAAP financial measures.
PDL BIOPHARMA, INC.
NON-GAAP CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (1)
(in thousands, except per share amounts)
(unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
2006 2005 2006 2005
REVENUES:
Product sales, net $41,064 $43,594 $117,650 $83,094
Royalties 42,533 26,003 140,524 96,695
License, collaboration and other 27,795 7,536 48,754 17,127
Total revenues 111,392 77,133 306,928 196,916
COSTS AND EXPENSES:
Cost of product sales 6,772 10,302 30,083 18,609
Research and development 54,779 45,302 156,434 113,054
Selling, general and administrative 23,337 26,262 70,583 52,994
Non-GAAP costs and expenses 84,888 81,866 257,100 184,657
Non-GAAP net income (loss) $26,504 $(4,733) $49,828 $12,259
NON-GAAP NET INCOME (LOSS) PER SHARE:
Basic $0.23 $(0.04) $0.44 $0.12
Weighted average shares -- basic 113,868 105,272 113,293 101,910
Diluted $0.23 $(0.04) $0.42 $0.12
Weighted average shares --
diluted (2) 116,594 105,272 117,438 106,460
(1) These non-GAAP condensed consolidated statements of operations
exclude depreciation of property and equipment; stock-based compensation
expense; amortization of intangible assets; interest income and other, net;
interest expense; income taxes and certain other miscellaneous items that
were not classified in the foregoing categories and are identified below.
During the three months ended September 30, 2006, the miscellaneous
excluded items consisted of (a) a $5.6 million charge incurred in
connection with the company's acquisition in September 2006 of certain
Cardene-related rights from Roche, (b) other acquisition-related charges of
$2.6 million related to the operations of ESP Pharma Holding Company, Inc.
prior to the Company's acquisition of ESP Pharma on March 23, 2005,
primarily product returns, as well as returns of Retavase for sales made
prior to the Company's acquisition of the rights to the product from
Centocor, Inc. on the same date, and (c) an asset impairment charge of $1.7
million for the impairment of an intangible asset related to the
distribution of Retavase. During the three months ended September 30, 2005,
the miscellaneous excluded items consisted of (a) other acquisition-related
charges of $6.3 million and (b) an asset impairment charge of $15.2 million
for the impairment of the off-patent branded products, originally acquired
from ESP Pharma, that the Company sold in the first quarter of 2006.
During the nine months ended September 30, 2006, the miscellaneous
excluded items consisted of (a) a $5.6 million charge incurred in
connection with the company's acquisition in September 2006 of certain
Cardene-related rights from Roche, (b) other acquisition-related charges of
$5.9 million, (c) asset impairment charges of $2.6 million and (d) a $4.1
million charge for payments to Wyeth in consideration of Wyeth's consent to
the Company's transfer of the Company's rights to the off-patent branded
products. During the nine months ended September 30, 2005, the
miscellaneous excluded items consisted of (a) a $79.4 million charge for
acquired in-process research and development related to the ESP Pharma
acquisition, (b) other acquisition- related charges of $9.5 million and (c)
an asset impairment charge of $15.2 million for the impairment of
off-patent branded products.
(2) These weighted average shares exclude 12.4 million shares and 10.6
million shares of common stock underlying the convertible notes we issued
in July 2003 and February 2005, respectively.
PDL BIOPHARMA, INC.
RECONCILIATION OF NON-GAAP CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS TO GAAP
(in thousands, except per share amounts)
(unaudited)
Three Months Ended September 30, 2006
Adjustments
Amortization
of Other
Non-GAAP Intangible Excluded
Results Assets Items
REVENUES:
Product sales, net $41,064 $- $-
Royalties 42,533 - -
License, collaboration and other 27,795 - -
Total revenues 111,392 - -
COSTS AND EXPENSES:
Cost of product sales 6,772 10,661
Research and development 54,779 412 5,621
Selling, general and administrative 23,337 - -
Non-GAAP costs and expenses 84,888
Depreciation of property and
equipment - - 7,411
Stock-based compensation - - 5,992
Other acquisition-related charges - - 2,615
Asset impairment charges - - 1,656
Total costs and expenses 11,073 23,295
Operating loss (11,073) (23,295)
Interest income and other, net - - 5,042
Interest expense - - (3,693)
Income (loss) before income
taxes 26,504 (11,073) (21,946)
Income tax expense - - 208
Net income (loss) $26,504 $(11,073) $(22,154)
NET INCOME (LOSS) PER SHARE:
Basic $0.23
Weighted average shares -- basic 113,868
Diluted $0.23
Weighted average shares -- diluted 116,594
Three Months Ended September 30, 2006
Adjustments
Depreciation Stock-
of Property Based GAAP
and Compensation Results
Equipment Expenses As Reported
REVENUES:
Product sales, net $- $- $41,064
Royalties - - 42,533
License, collaboration and other - - 27,795
Total revenues - - 111,392
COSTS AND EXPENSES:
Cost of product sales - - 17,433
Research and development 6,569 3,499 70,880
Selling, general and
administrative 842 2,493 26,672
Non-GAAP costs and expenses
Depreciation of property and
equipment (7,411) - -
Stock-based compensation - (5,992) -
Other acquisition-related charges - - 2,615
Asset impairment charges - - 1,656
Total costs and expenses - - 119,256
Operating loss - - (7,864)
Interest income and other, net - - 5,042
Interest expense - - (3,693)
Income (loss) before income
taxes - - (6,515)
Income tax expense - - 208
Net income (loss) $- $- $(6,723)
NET INCOME (LOSS) PER SHARE:
Basic $(0.06)
Weighted average shares -- basic 113,868
Diluted $(0.06)
Weighted average shares -- diluted 113,868
Three Months Ended September 30, 2005
Adjustments
Amortization
of Other
Non-GAAP Intangible Excluded
Results Assets Items
REVENUES:
Product sales, net $43,594 $- $-
Royalties 26,003 - -
License, collaboration and other 7,536 - -
Total revenues 77,133 - -
COSTS AND EXPENSES:
Cost of product sales 10,302 11,907 -
Research and development 45,302 486 -
Selling, general and administrative 26,262 - -
Non-GAAP costs and expenses 81,866
Depreciation of property and
equipment - - 4,039
Stock-based compensation - - 186
Other acquisition-related charges - - 6,266
Asset impairment charges 15,225
Total costs and expenses 12,393 25,716
Operating income (loss) (12,393) (25,716)
Interest income and other, net - - 2,027
Interest expense - - (2,671)
Income (loss) before income
taxes (4,733) (12,393) (26,360)
Income tax expense - - 1,680
Net income (loss) $(4,733) $(12,393) $(28,040)
NET INCOME (LOSS) PER SHARE:
Basic $(0.04)
Weighted average shares - basic 105,272
Diluted $(0.04)
Weighted average shares - diluted 105,272
Three Months Ended September 30, 2005
Adjustments
Depreciation Stock-
of Property Based GAAP
and Compensation Results
Equipment Expenses As Reported
REVENUES:
Product sales, net $- $- $43,594
Royalties - - 26,003
License, collaboration and other - - 7,536
Total revenues - - 77,133
COSTS AND EXPENSES:
Cost of product sales - - 22,209
Research and development 3,624 68 49,480
Selling, general and
administrative 415 118 26,795
Non-GAAP costs and expenses
Depreciation of property and
equipment (4,039) - -
Stock-based compensation - (186) -
Other acquisition-related charges - - 6,266
Asset impairment charges 15,225
Total costs and expenses - - 119,975
Operating income (loss) - - (42,842)
Interest income and other, net - - 2,027
Interest expense - - (2,671)
Income (loss) before income
taxes - - (43,486)
Income tax expense - - 1,680
Net income (loss) $- $- $(45,166)
NET INCOME (LOSS) PER SHARE:
Basic $(0.43)
Weighted average shares - basic 105,272
Diluted $(0.43)
Weighted average shares - diluted 105,272
PDL BIOPHARMA, INC.
RECONCILIATION OF NON-GAAP CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS TO GAAP
(in thousands, except per share amounts)
(unaudited)
Nine Months Ended September 30, 2006
Adjustments
Amortization
of Other
Non-GAAP Intangible Excluded
Results Assets Items
REVENUES:
Product sales, net $117,650 $- $-
Royalties 140,524 - -
License, collaboration and other 48,754 - -
Total revenues 306,928 - -
COSTS AND EXPENSES:
Cost of product sales 30,083 31,791 -
Research and development 156,434 1,386 5,621
Selling, general and administrative 70,583 - 4,123
Non-GAAP costs and expenses 257,100
Depreciation of property and
equipment - - 23,543
Stock-based compensation - - 17,740
Other acquisition-related charges - - 5,910
Asset impairment charges - - 2,556
Total costs and expenses 33,177 59,493
Operating loss (33,177) (59,493)
Interest income and other, net - - 12,436
Interest expense - - (9,465)
Income (loss) before income
taxes 49,828 (33,177) (56,522)
Income tax expense - - 441
Net income (loss) $49,828 $(33,177) $(56,963)
NET INCOME (LOSS) PER SHARE:
Basic $0.44
Weighted average shares -- basic 113,293
Diluted $0.42
Weighted average shares -- diluted 117,438
Nine Months Ended September 30, 2006
Adjustments
Depreciation Stock-
of Property Based GAAP
and Compensation Results
Equipment Expenses As Reported
REVENUES:
Product sales, net $- $- $117,650
Royalties - - 140,524
License, collaboration and other - - 48,754
Total revenues - - 306,928
COSTS AND EXPENSES:
Cost of product sales - - 61,874
Research and development 21,550 10,272 195,263
Selling, general and
administrative 1,993 7,468 84,167
Non-GAAP costs and expenses
Depreciation of property and
equipment (23,543) - -
Stock-based compensation - (17,740) -
Other acquisition-related charges - - 5,910
Asset impairment charges - - 2,556
Total costs and expenses - - 349,770
Operating loss - - (42,842)
Interest income and other, net - - 12,436
Interest expense - - (9,465)
Income (loss) before income
taxes - - (39,871)
Income tax expense - - 441
Net income (loss) $- $- $(40,312)
NET INCOME (LOSS) PER SHARE:
Basic $(0.36)
Weighted average shares -- basic 113,293
Diluted $(0.36)
Weighted average shares -- diluted 113,293
Nine Months Ended September 30, 2005
Adjustments
Amortization
of Other
Non-GAAP Intangible Excluded
Results Assets Items
REVENUES:
Product sales, net $83,094 $- $-
Royalties 96,695 - -
License, collaboration and other 17,127 - -
Total revenues 196,916 - -
COSTS AND EXPENSES:
Cost of product sales 18,609 24,872 -
Research and development 113,054 1,622 -
Selling, general and administrative 52,994 14 -
Non-GAAP costs and expenses 184,657
Depreciation of property and
equipment - - 11,151
Stock-based compensation - - 512
Acquired in-process research and
development - - 79,417
Other acquisition-related charges - - 9,473
Asset impairment charges 15,225
Total costs and expenses 26,508 115,778
Operating income (loss) (26,508) (115,778)
Interest income and other, net - - 6,835
Interest expense - - (7,522)
Income (loss) before income
taxes 12,259 (26,508) (116,465)
Income tax expense - - 1,767
Net income (loss) $12,259 $(26,508) $(118,232)
NET INCOME (LOSS) PER SHARE:
Basic $0.12
Weighted average shares - basic 101,910
Diluted $0.12
Weighted average shares - diluted 106,460
Nine Months Ended September 30, 2005
Adjustments
Depreciation Stock-
of Property Based GAAP
and Compensation Results
Equipment Expenses As Reported
REVENUES:
Product sales, net $- $- $83,094
Royalties - - 96,695
License, collaboration and other - - 17,127
Total revenues - - 196,916
COSTS AND EXPENSES:
Cost of product sales - - 43,481
Research and development 10,188 216 125,080
Selling, general and
administrative 963 296 54,267
Non-GAAP costs and expenses
Depreciation of property and
equipment (11,151) - -
Stock-based compensation - (512) -
Acquired in-process research and
development - - 79,417
Other acquisition-related charges - - 9,473
Asset impairment charges 15,225
Total costs and expenses - - 326,943
Operating income (loss) - - (130,027)
Interest income and other, net - - 6,835
Interest expense - - (7,522)
Income (loss) before income
taxes - - (130,714)
Income tax expense - - 1,767
Net income (loss) $- $- $(132,481)
NET INCOME (LOSS) PER SHARE:
Basic $(1.30)
Weighted average shares - basic 101,910
Diluted $(1.30)
Weighted average shares - diluted 101,910
PDL BIOPHARMA, INC.
CONDENSED CONSOLIDATED BALANCE SHEET DATA
(in thousands)
(unaudited)
September 30, December 31,
2006 2005
Cash, cash equivalents, marketable
securities, and restricted cash and
investments $422,268 $333,922
Total assets $1,196,783 $1,163,154
Total stockholders' equity $540,687 $526,065
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW DATA
(in thousands)
(unaudited)
Nine Months Ended September 30,
2006 2005
Net loss $(40,312) $(132,481)
Adjustments to reconcile net loss to
net cash provided by operating
activities 79,302 134,792
Changes in assets and liabilities 34,057 11,252
Net cash provided by operating
activities $73,047 $13,563
SOURCE PDL BioPharma, Inc.
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Related links:
http://www.pdl.com
CONTACT:
Ami Knoefler, Corporate and Investor
Relations, +1-510-284-8851, of ami.knoefler@pdl.com, or Jean
Suzuki, Corporate Relations, +1-510-574-1550, or
jean.suzuki@pdl.com, both of PDL BioPharma, Inc.
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