PDL BioPharma Inc (NASDAQ:PDLI) reported that it has entered into a settlement deal with certain subsidiary firms of Merck & Co., Inc. to resolve the patent breach case related to Keytruda humanized antibody offering.
Under the settlement terms, Merck will compensate PDL a one-time, payment of $19.5 million, and the firm will allow Merck an entirely paid-up, royalty free, license to certain of the firm’s Queen et al. rights for use, pertaining to Keytruda, and an agreement not to indict Merck for any royalties concerning Keytruda. Moreover, the parties agreed to terminate all claims in the pertinent legal proceedings.
The experts view
John P. McLaughlin, the CEO and President of PDL BioPharma, reported that they are delighted to resolve this patent breach case with Merck with a satisfactory monetary settlement to company as well as removing potential future litigation charges related to this subject for both parties. As a result of the announced deal, the company anticipate to recognize license revenue of $19.5 million for the second quarter closing June 30, 2017.
PDL seeks to offer a considerable return for its stockholders by managing and acquiring a portfolio of firms, royalty agreements, debt facilities and products in the pharmaceutical, medical device and biotech industries. A few years ago, PDL began providing different sources of capital via debt facilities and royalty monetization and in 2016, started making equity investments in some of the commercial stage entities. The company has committed more than $1.4 billion and funded around $1.1 billion in the committed investments to date.
Last year was a notable year for PDL; one in which they advanced from different prospects in the specialty pharma sector and noted it an added tool to enhance overall shareholder value. As the company enters into the second quarter of 2017, the management focus will shift on Noden product commercialization, and getting additional specialty pharma resources.
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