PDL BioPharma, Inc. (PDLI - Free Report) announced that it has committed to an equity investment in privately held Noden Pharma DAC in a bid to acquire global rights to manufacture, market and sell Tekturna and Tekturna HCT.
Under the terms of the agreement, PDL BioPharma will pay equity contributions of approximately $107 million to Noden in the first year and an initial equity investment of $75 million upon the closing of the transaction. It will also pay an additional $32 million equity contribution at the end of one year of closing the transaction.
Moreover, Noden expects to obtain debt financing with regard to the equity investment. PDL BioPharma may contribute additional amounts of equity depending upon the amount of debt obtained by Noden, and requirement for specified milestone payments or other purposes.
PDL BioPharma's investment will eventually reach 88% equity interest in Noden. The company will consolidate Noden's financial statements into its own, which will be immediately accretive to earnings.
We remind investors that Noden Pharma had executed a purchase agreement with Novartis AG (NVS - Free Report) to acquire rights to Tekturna and Tekturna HCT for the treatment of hypertension. Tekturna and Tekturna HCT are marketed in ex-U.S. countries as Rasilez and Rasilez HCT, respectively.
We note that the active ingredient of Tekturna and Tekturna HCT, aliskiren, is indicated for the treatment of hypertension. In 2015, Tekturna and Tekturna HCT generated revenues of $154 million.
PDL BioPharma currently carries a Zacks Rank #4 (Sell). A couple of better-ranked stocks in the health care sector are Bristol-Myers Squibb Company (BMY - Free Report) and Pfizer Inc. (PFE - Free Report) , both sporting a Zacks Rank #1 (Strong Buy).
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Zacks Names "Single Best Pick to Double"
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It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
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PDL BioPharma, Inc. (PDLI - Free Report) announced that it has committed to an equity investment in privately held Noden Pharma DAC in a bid to acquire global rights to manufacture, market and sell Tekturna and Tekturna HCT.
Under the terms of the agreement, PDL BioPharma will pay equity contributions of approximately $107 million to Noden in the first year and an initial equity investment of $75 million upon the closing of the transaction. It will also pay an additional $32 million equity contribution at the end of one year of closing the transaction.
Moreover, Noden expects to obtain debt financing with regard to the equity investment. PDL BioPharma may contribute additional amounts of equity depending upon the amount of debt obtained by Noden, and requirement for specified milestone payments or other purposes.
PDL BioPharma's investment will eventually reach 88% equity interest in Noden. The company will consolidate Noden's financial statements into its own, which will be immediately accretive to earnings.
We remind investors that Noden Pharma had executed a purchase agreement with Novartis AG (NVS - Free Report) to acquire rights to Tekturna and Tekturna HCT for the treatment of hypertension. Tekturna and Tekturna HCT are marketed in ex-U.S. countries as Rasilez and Rasilez HCT, respectively.
We note that the active ingredient of Tekturna and Tekturna HCT, aliskiren, is indicated for the treatment of hypertension. In 2015, Tekturna and Tekturna HCT generated revenues of $154 million.
PDL BioPharma currently carries a Zacks Rank #4 (Sell). A couple of better-ranked stocks in the health care sector are Bristol-Myers Squibb Company (BMY - Free Report) and Pfizer Inc. (PFE - Free Report) , both sporting a Zacks Rank #1 (Strong Buy).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free report >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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