PDL BioPharma

US: PDLI

$355.9m market cap

$2.95 last close

PDL has reinvented itself through a three-pronged strategy: investing in royalty streams of marketed and development-stage therapeutics and providing high-yield debt financing to device & diagnostic companies with near-term product launches.

Investment summary

PDL BioPharma is a healthcare-focused company with a three-pronged strategy: investing in royalty streams, providing high-yield financing to life science companies with near-term product launches as well as purchasing all or part of commercial or near-commercial pharmaceutical companies. This strategy allows investors to gain exposure in healthcare through a relatively low-risk, diversified vehicle. PDL recently invested $60m in two tranches of $30m each in Evofem, a women’s health company that is preparing to submit an NDA for Amphora, a non-hormonal female contraceptive, in Q419 with approval expected in Q220. According to the CDC, 61.7% of the 60.9 million women aged 15–44 use contraception and according to Evaluate Pharma, $6.5bn worth of hormonal contraceptives were sold in 2018.

Y/E Dec
Revenue (US$m)
EBITDA (US$m)
PBT (US$m)
EPS (c)
P/E (x)
P/CF (x)
2017A 320.1 218.8 200.3 81.33 3.6 11.3
2018A 198.1 84.1 78.8 45.22 6.5 N/A
2019E 123.5 39.0 34.7 21.23 13.9 N/A
2020E 125.7 41.0 37.5 24.04 12.3 N/A
Last updated on 25/07/2019
Industry outlook

PDL BioPharma is one of the only companies that will give broad exposure to diverse royalty streams as well as corporate debt and high margin approved products.

Last updated on 25/07/2019
Sector
Healthcare
Share price graph
Balance sheet
Forecast net cash (US$m) 279.2
Forecast gearing ratio (%) N/A
Price performance
%
1m
3m
12m
Actual (4.2) (12.7) 14.8
Relative* (7.0) (15.0) 8.8
52-week high/low US$3.8/US$2.3
*% relative to local index
Key management
Peter Garcia CFO
Dominique Monnet President & CEO

Content on PDL BioPharma