PDL BioPharma Announces Sale of Kybella®, Zalviso® and Coflex® Royalties to SWK Holdings Corporation
INCLINE VILLAGE, Nev., Aug. 31, 2020 /PRNewswire/ -- PDL BioPharma Inc ("PDL" or the "Company") (Nasdaq: PDLI) announces the signing and closing of a definitive agreement for the sale of three royalty interests for Kybella®, Zalviso®, and Coflex® (collectively the "Royalties") to SWK Funding, LLC ("SWK"), a wholly owned subsidiary of SWK Holdings Corporation (Nasdaq: SWKH), in exchange for PDL to receive $4.35 million in cash.
"The sale of these Royalties to SWK represents another step in the execution of our monetization strategy," commented PDL's President and CEO Dominique Monnet. "This transaction is expected to generate meaningful benefits for our stockholders as we move toward liquidation and dissolution."
In addition to the cash proceeds from the sale to SWK, PDL believes that this transaction may qualify for Federal tax benefits under the CARES Act. In connection with its monetization process, PDL expects to execute transactions in 2020 that may result in the recognition of ordinary tax losses that, under the CARES Act, could be applied to prior tax years in which PDL was a substantial tax payor. At this time, however, there can be no assurance that such tax benefits will be realized.
BofA Securities, Inc. acted as sole structuring advisor to PDL for the transaction. BofA Securities, Inc. will continue the sale process for the Company's royalty interests in Glumetza®, Jentadueto® XR, Invokamet® XR, and Synjardy® XR (collectively "the Assertio Royalties") and the remaining royalty interest in Cerdelga®.
About SWK Holdings Corporation
About PDL BioPharma, Inc.
As of December 2019, PDL ceased making additional strategic transactions and investments and is pursuing a formal process to unlock the value of its portfolio by monetizing its assets and ultimately distributing net proceeds to stockholders in the form of cash or equity.
For more information please visit https://www.pdl.com/
NOTE: PDL, PDL BioPharma, the PDL logo and associated logos and the PDL BioPharma logo are trademarks or registered trademarks of, and are proprietary to, PDL BioPharma, Inc. which reserves all rights therein.
This press release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including as it relates to the Company's proposed plan of complete liquidation, proposed dissolution or transactions thereunder. Each of these forward-looking statements involves risks and uncertainties. Actual results may differ materially from those, express or implied, in these forward-looking statements. Important factors that could impair the value of the Company's assets and business, including the implementation or success of the Company's monetization strategy/plan of complete liquidation and proposed dissolution, are disclosed in the risk factors contained in the Company's Annual Report on Form 10-K filed with the SEC on March 11, 2020 and Quarterly Reports on Form 10-Q, filed with the SEC on May 11, 2020 and August 20, 2020, and subsequent filings. All forward-looking statements are expressly qualified in their entirety by such factors. The Company does not undertake any duty to update any forward-looking statement except as required by law.
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SOURCE PDL BioPharma, Inc.
Company Codes: NASDAQ-NMS:PDLI, NASDAQ-NMS:SWKH