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PDL BioPharma (PDLI) Q4 Earnings Top Mark, Revenues Fall Y/Y

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PDL BioPharma, Inc. (PDLI - Free Report) delivered earnings of 10 cents per share in the fourth quarter of 2018, beating the Zacks Consensus Estimate of 8 cents. However, the bottom line was lower than 17 cents in the year-ago period.

The company’s total revenues grossed $45.1 million in fourth-quarter 2018, reflecting a 28.4% decrease year over year. This downside is mainly attributable to a decline in royalties as well as lower product sales.

Shares of PDL have rallied 20% so far this year, outperforming the industry’s increase of 14.5%.

Full-Year Results

PDL generated revenues of $198.1 million in 2018, declining 38.1% year over year. Net income per share for 2018 was 39 cents compared with 64 cents in 2017.

Quarter in Detail

We remind investors that Mr. Dominique Monnet assumed the role of the new chief executive officer (CEO) and president following the retirement of PDL’s former CEO John P. McLaughlin’s at the end of 2018.

Product revenues for the quarter under review were $26 million, down 20.2% year over year. The same included $18.8 million from the sales of Noden products — Tekturna and Tekturna HCT — and $7.2 million from the sales of LENSAR laser system in the United States.

PDL recognized $19.1 million in revenues from royalty rights while royalties from PDL's licensees to the Queen et al. patents and interest revenues were both less than $0.1 million.

Royalty revenues from the Queen et al. licenses were significantly lower than the year-ago period, mainly due to lower product supplies of Biogen’s (BIIB - Free Report) multiple sclerosis drug, Tysabri.

Other Updates

PDL repurchased 8.7 million shares worth $25.5 million in the reported quarter. Last September, the company’s board of directors approved a new $100 million worth share buyback program of the company's common stock. Since the initiation of this program, PDL has successfully repurchased 19.4 million shares.

Earlier this month, the authorized generic version of Tekturna (150 mg/300 mg tablets) was launched in the United States. The unveiling activities were carried out by the privately held pharmaceutical company Prasco, LLC. This introduction does not include an authorized generic version of Tekturna HCT.

PDL BioPharma, Inc. Price, Consensus and EPS Surprise

Zacks Rank & Other Stocks to Consider

PDL currently carries a Zacks Rank #2 (Buy). Other top-ranked stocks in the biotech sector include Celgene Corporation and Trevena, Inc. (TRVN - Free Report) , both sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Celgene’s earnings estimates have moved 3.8% north for 2019 and 3.9% for 2020 over the past 60 days. The stock has surged 37.8% so far this year.

Trevena’s loss per share estimates have been narrowed 12.9% for 2019 and 11% for 2020 in the last 60 days. The stock has skyrocketed 239.5% year to date.

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