WASHINGTON (dpa-AFX) - PDL BioPharma, Inc. (PDLI) announced royalty revenue guidance for the first quarter ending March 31, 2012, of approximately $77 million, as compared with actual royalty revenue of $73 million for the first quarter of 2011, a five percent increase.
Total revenue for the first quarter of 2012 is expected to be $6 million less than total revenue for the first quarter of 2011. The decline in expected total revenue is largely attributable to the $10 million settlement received from UCB Pharma S.A. in January 2011 resolving all legal disputes between the two companies, including those relating to UCB's pegylated humanized antibody fragment, Cimzia, and PDL's patents known as the Queen et al. patents.
Analysts polled by Thomson Reuters expect the company to report revenues of $73.70 million for the first-quarter. Analysts' estimates typically exclude special items.
The forecasted growth in royalty revenues is driven by increased fourth quarter 2011 sales of Herceptin, Lucentis, Xolair and Tysabri for which PDL receives royalties in the first quarter of 2012. Sales of Avastin, Herceptin, Lucentis and Xolair (the Genentech Products) are subject to a tiered royalty rate for product that is made or sold in the United States and a flat royalty rate of three percent for product that is manufactured and sold outside of the United States.
Revenue guidance for the first quarter of 2012 is net of an estimated payment due under our February 2011 settlement agreement with Novartis AG. PDL BioPharma said that it pays to Novartis certain amounts based on net sales of Lucentis made by Novartis during calendar year 2011 and beyond. The company said that the amount paid is less than it received in royalties on such sales.
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