NEW YORK (TheStreet) -- Shares of PDL BioPharma  (PDLI - Get Report)  were dropping 14.4% to $3.03 on heavy trading volume late Friday morning after the company posted 2016 second-quarter results after Thursday's closing bell.

Revenue for the quarter was $21.0 million, far below estimates of $33.46 million.

Revenues declined 85% year-over-year, attributed mainly to the decrease in royalty rights following the expiration of a patent license agreement with Genentech.

The Incline Village, NV-based biopharmaceuticals company posted adjusted earnings of 9 cents per diluted share for the period, higher than estimates of 8 cents per share.

PDL also eliminated its quarterly cash dividend in order to make "significant strategic investments and financing decisions" to drive long-term growth, according to a company statement.

Over 2.52 million shares of the stock have traded so far today, higher than the 30-day daily average of 1.14 million shares.

Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.

TheStreet Ratings rated this stock as a "hold" with a ratings score of C.

The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, attractive valuation levels and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, a generally disappointing performance in the stock itself and feeble growth in the company's earnings per share.

You can view the full analysis from the report here: PDLI