PDL BioPharma Rises On Better-than-seen Outlook
NEW YORK (AP) ¿ Shares of PDL BioPharma Inc. jumped Monday after the company said it expects a revenue boost in the second quarter from royalties on a mix of drugs, including the blockbuster cancer treatment Avastin and respiratory virus drug Synagis.
The biotechnology stock gained 22 cents, or 3.1 percent, to reach $7.38 in morning trading. Shares have traded between $5.20 and $12.70 over the last 52 weeks.
The Incline Village, Nev.-based company expects revenue of about $125 million during the quarter, up 18 percent from $106 million a year prior. Analysts polled by Thomson Reuters expect revenue of $114.7 million, on average.
The company receives royalties from Genentech Inc. on the cancer treatment Avastin and macular degeneration treatment Lucentis. Genentech is now part of Swiss-based Roche. PDL also receives royalties from Ireland-based Elan on sales of the multiple sclerosis drug Tysabri. Elan's partner on that drug is Biogen Idec Inc.PDL is scheduled to report its second-quarter results Aug. 6. BMO Capital Markets analyst Jason Zhang reaffirmed a "Outperform" rating and a $8 price target, and attributed the higher-than-expected guidance to royalty revenue from the respiratory virus drug Synagis, which is made by Medimmune, part of AstraZeneca. "Because of an ongoing license litigation, the company had previously not included royalty on Synagis sales in its forecast," Zhang said. The latest outlook now includes about $18.7 million from Synagis royalties.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV