Ebb & Flow

Investors lopped off one-third of PDL Biopharma's value last Wednesday after the company announced late Tuesday that it was taking itself off the auction block after failing to receive any firm offers to purchase its biotech R&D business.

The $600 million decline in market cap - the shares fell $5.13 (32%) to $10.71 on Wednesday - accounts for the $500 million that PDL plans to distribute to shareholders from the sale of its marketed products and manufacturing facility over the last few months. Those transactions brought in $525 million in cash with the potential for an additional $85 million in milestones and royalties. The remaining $25 million will cover tax and transaction costs (see BioCentury, Feb. 25). ...