PDL out of red ahead of biotech spin-off

USA-based biotechnology company PDL BioPharma has returned to profit in the third quarter of 2008, compared to the same period of the year before, on increased revenue from its royalty division and lower costs in its biotechnology business, which it is preparing to spin-off into new company Facet Biotech (Marketletter October 6).

Revenue rose 26% to $77.3 million, driven by higher royalties from an increase in the amount of Herceptin (trastuzumab) production being conducted outside the USA. R&D costs were cut by 6% to $44.7 million due to the termination of the firm's Nuvion (visilizumab) program after a Data Monitoring Committee review concluded that the product had an inferior efficacy and safety profile to other available ulcerative colitis therapies (Marketletter September 10), according to the firm.

Net income reached $55.7 million, or $0.47 per share, versus a net loss of $5.7 million, or $0.05 loss per share. During the year so far, the firm has managed to increase its cash and cash equivalent reserves by 27% to reach $558.6 million.