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Edited Transcript of PDLI earnings conference call or presentation 11-Mar-20 8:30pm GMT

·28 mins read

Q4 2019 PDL BioPharma Inc Earnings Call INCLINE VILLAGE Apr 9, 2020 (Thomson StreetEvents) -- Edited Transcript of PDL BioPharma Inc earnings conference call or presentation Wednesday, March 11, 2020 at 8:30:00pm GMT TEXT version of Transcript ================================================================================ Corporate Participants ================================================================================ * Dominique P. Monnet PDL BioPharma, Inc. - CEO, President & Director * Edward A. Imbrogno PDL BioPharma, Inc. - VP, CFO & CAO * Jody Cain Lippert/Heilshorn & Associates, Inc. - IR ================================================================================ Conference Call Participants ================================================================================ * Kenneth Craig Atkins Cowen and Company, LLC, Research Division - Research Associate * Maxim Jacobs Edison Investment Research Limited - Managing Partner & Director of Healthcare Research for North America ================================================================================ Presentation -------------------------------------------------------------------------------- Operator [1] -------------------------------------------------------------------------------- Ladies and gentlemen, thank you for standing by. Welcome to the PDL BioPharma 2019 Fourth Quarter and Full Year Conference Call. (Operator Instructions) As a reminder, today's call is being recorded. For opening remarks and introductions, I would now like to turn the call over to Jody Cain. Please go ahead, ma'am. -------------------------------------------------------------------------------- Jody Cain, Lippert/Heilshorn & Associates, Inc. - IR [2] -------------------------------------------------------------------------------- This is Jody Cain with LHA. Thank you all for participating in today's call. Please note that a slide presentation to accompany management's prepared remarks is available in the Investor Relations section of the PDL website at pdl.com. Joining me today from PDL BioPharma are Dominique Monnet, President and CEO; and Ed Imbrogno, Vice President and Chief Financial Officer. Nick Curtis, CEO of LENSAR, one of PDL's operating subsidiaries, will join us for the question-and-answer session. Please turn to Slide 2, and let me remind you that during this call, management will be making forward-looking statements regarding the company's financial performance and other matters. And actual results may differ materially from those expressed in or implied by the forward-looking statements. Factors that may cause differences between current expectations and actual results are described in the company's SEC filings, which are available at sec.gov and in the Investor Relations section of pdl.com. The forward-looking statements made during this call should be considered accurate only as of the date of the live broadcast, March 11, 2020. Although the company may elect to update forward-looking statements from time to time in the future, the company specifically disclaims any duty or obligation to do so, even as new information becomes available or other events occur in the future. Today's conference call remarks will include both GAAP and non-GAAP financial results. PDL believes the non-GAAP financial measures provide investors with useful supplemental information about the financial performance of its business, enable the comparison of financial results between periods where certain items may vary independently of business performance and allow for greater transparency with respect to key metrics used by management in operating the business. These non-GAAP financial measures are presented solely for the information and comparative purposes and should not be regarded as a replacement for corresponding GAAP measures. Reconciliation between GAAP and non-GAAP financial measures can be found at the end of the financial results news release that was issued earlier today. Before turning the call over to Dominique Monnet, I'd like to direct you to Slide 3 and refer you to the upcoming PDL 2020 proxy statement for additional information. I'll now turn the call over to Dominique. -------------------------------------------------------------------------------- Dominique P. Monnet, PDL BioPharma, Inc. - CEO, President & Director [3] -------------------------------------------------------------------------------- Thanks, Jody. Good afternoon, everyone, and thank you for joining us. I would like to start by thanking my PDL colleagues as well as the teams at LENSAR and Noden for another strong quarter and robust results in 2019. While we wrote down some assets at year-end, our strong operating results are a testament to the quality and intrinsic value of our assets as well as to the dedication and skills of our teams. We exceeded all our upwardly revised revenue guidance figures for the year, while at the same time, executing a radical change of strategy. In sum, 2019 was a strong year for PDL. Starting with Slide 4. I want to share with you the progress we have quickly made on our strategy to monetize our assets. You may recall that following an extensive strategic review conducted by our management and Board of Directors together with outside legal and financial advisers in the second half of last year, we did remind that selling the company as a whole or in parts was the best approach to unlock its full value for our stockholders. We have begun the process of marketing PDL and our portfolio of assets through a disciplined approach with a focus on maximizing net proceeds for stockholders. And I am very encouraged by the rapid progress we have already made. We put together a comprehensive plan of complete liquidations that was approved by our Board in early February. We have engaged leading investment banks to advise us in the execution of this monetization process, ensuring a broad outreach to potential acquirers whether for a whole company transaction or the divestiture of individual assets. This process is now well underway with clear action plans, responsibilities and resources and a time line agreed upon and regularly reviewed with our Board. We have engaged the following financial advisers to partner with us. BofA Securities is acting as our financial advisers in connection with the sale of the whole company or its royalty portfolio. We have started the process to sell our Noden Pharma subsidiaries and have engaged Torreya to lead these efforts. Torreya is also advising us on the sale of our Evofem Biosciences stock. We remain fully committed to LENSAR's success in the development of its next-generation technology, while we pursue the appropriate path to maximize its value for PDL stockholder. We have engaged SVB Leerink to lead this process and evaluate the opportunities available to LENSAR. SVB Leerink has also been retained to advise our management team and Board of Directors on overall liquidation and distribution strategies. In view of these rapid starts, our goal is now to complete either a whole company sale or the monetization of our 4 key assets by the end of 2020, a significantly accelerated time line compared to the 2 to 3 years we previously communicated. We're exploring a variety of potential transaction, including a sale, a spin-off through share distribution or a combination of transactions. We plan to distribute the net proceeds to stockholder in a tax-efficient manner in the form of share repurchases and dividends or by other means. This is an ambitious plan under an accelerated time line, and we are fully committed to its execution. Underlying our confidence are the high quality of our assets, which we believe makes them attractive acquisition targets, and our team of employees, advisers and Board members who have the expertise to execute this process. We believe that the best approach to minimizing operating costs, including the notable costs of being a public company, is to complete this process quickly without adversely impacting the market value of our assets. This is why we set the ambitious target of completing the sales of our key asset by 2020 year-end. This time line will also help in minimizing fiscal interdependencies and maximizing tax efficiencies. In addition to speed of execution, we have implemented a broad range of cost reduction initiatives as part of our budget for 2020, including the progressive downsizing of the PDL team as we sell assets. And our Board has formed a dedicated cost management committee to oversee this process. Turning to Slide 5. In early February, in addition to approving a plan of complete liquidation, our Board passed a resolution to seek stockholder approval for a dissolution of the company in the event a whole company sales process would not maximize the value from our assets that can be returned to our stockholders. We would plan to include this dissolution proposal in our proxy statement for a vote at our 2020 Annual Meeting. Assuming stockholder approval, we would then target to file a certificate of dissolution in Delaware by 2020 year-end. After dissolution, we anticipate that the company will remain solely to manage potential litigation and resolve claims post dissolution distribution and the monetization of remaining minor passive assets. The company will also handle remaining stockholder matters and administrative issues. Please refer to our upcoming proxy statement for further detail on the dissolution process. On Slide 6 are additional steps we have already taken in connection with our change of strategy. Among these are the announced changes to our Board. Elizabeth O'Farrell, who joined as a Director in June 2018, was named Chairperson at the beginning of 2020, replacing Dr. Barry Selick, who retired after serving on the PDL Board for nearly 11 years. Paul Sandman, who has been a Director for the past 12 years, will retire from the Board at PDL's 2020 Annual Meeting of Stockholders. On behalf of the Board and our entire company, I would like to thank Barry and Paul for their long service to PDL and their many valued contributions. With the appointment of Alan Bazaar and following Paul Sandman's retirement, the PDL Board will be comprised of 7 directors, down from 9, at our 2019 Annual Meeting. This is a highly experienced and diverse Board with 5 of our directors having joined within the past 2 years. Our directors have deep expertise in areas important to our monetization strategy and must have served in senior executive positions at some of the world's leading biopharma companies. We have also taken important steps toward stockholder value creation for a substantial share on convertible notes repurchase program. In early December, we announced that our Board authorized a $200 million share and note buyback program. Shortly thereafter, we retired 80% of our 2021 and 2024 convertible notes for $144 million, comprised of $98 million in cash and 13.4 million shares of our common stock. This reduction in our convertible notes will allow us to monetize our assets with greater flexibility and on more favorable financial terms by significantly lessening the potential impact of provisions of the convertible note indentures on such transactions. Additionally, we avoided $12.6 million in cash coupons interest by retiring the debt early and an additional $9.4 million of accretion interest that would have been due on the 2024 notes at maturity. Following the announced note exchange, the Board authorized a $75 million increase to the repurchase program, bringing the total to $275 million. The Board also approved the implementation of a 10b5-1 plan. In summary, as part of the buyback program, we have repurchased 7 million shares of our common stock at an average price of $3.43 per share. We also retired an additional $13.7 million in principal value of our remaining notes, leaving $17 million in principal value of notes outstanding. On top of that, we have deployed $184 million of the authorized $275 million program with $91 million remaining. Let me now turn in some details to our high-quality assets and the implementation of our process to monetize them. On Slide 7, beginning with LENSAR, net sales for the fourth quarter reached a record $8.5 million. This is a 19% increase from the fourth quarter of 2018 and a 5% increase from the third quarter of 2019. For the full year 2019, LENSAR net sales reached $30.7 million, increasing 25% over the prior year and exceeding our full year 2019 guidance of $27 million to $29 million. LENSAR has been increasingly recognized by ophthalmic surgeons as a technology leader in the femtosecond laser-assisted cataract surgery market, or FLACS. This has supported sustained year-over-year procedure volume growth since the product was launched in 2012, including a 33% gain in procedure volume for 2019. The number of LENSAR procedures worldwide topped 100,000 in 2019. And by year-end, LENSAR held an approximate 13% share of the global FLACS market. Turning to Slide 8. LENSAR is very well positioned for sustained growth by effectively building on its position as an innovator for the treatment of cataracts that require greater accuracy and procedure customization. LENSAR features the best-in-class technology with Streamline IV, which enables the optimized treatment of tissue-specific cataracts and surgeons' management of astigmatism. Between 70% and 90% of cataract patients have treatable, visually significant astigmatism prior to surgery, but this astigmatism remains largely uncorrected post-surgery. We expect LENSAR's current femtosecond laser to continue to gain market share as it addresses a growing unmet need for improved tools and features in the management of astigmatism. It also addresses the demand for improved visual outcomes with more complex intraocular lenses, or IOLs. Laser-assisted cataract surgery is expected to grow at 2.4x the rate of the overall cataract surgery market or at a 7.3% CAGR for 2023, fueled in part by increased adoption of these advanced premium IOLs. Now to Slide 9. Above and beyond its Streamline IV laser, we believe that LENSAR's next-generation system, which we refer to as GEN2, will substantially enhance its growth prospects. GEN2 will combine in a single compact workstation a state-of-the-art femtosecond laser and a phacoemulsification system, providing surgeons the ability to switch seamlessly between the 2 technologies. Further, LENSAR intellectual property secures a premier technology position for GEN2 development and commercialization. GEN2 provides a competitive advantage that is expected to substantially expand LENSAR's position in the market. GEN2 also capitalizes on market trends such as the increase in private equity acquisitions of ophthalmic practices, lower surgeon reimbursement and standard cataract surgery and a move toward in-office cataract surgery. A recent company-sponsored survey conducted by an independent research group among 120 U.S. cataract surgeons supports a large demand potential for GEN2. 40% of surgeons say that GEN2 would increase a number of FLACS procedures they perform. 89% said it is preferable to have the femto laser in the same room as a phaco system, but only 34% currently have this arrangement. 83% would consider acquiring a GEN2 system when it is time to replace a femto laser or a phaco system. 83% and 75% of respondents would consider acquiring a GEN2 system in addition to their current femto system and phaco systems, respectively. 66% say that GEN2 addresses unmet needs in cataract surgery with an average of 6.9 on a 10-point scale. And finally, the combination femto-phaco configuration ranked higher than the stand-alone laser for all 5 brands tested in the survey. The development of GEN2 is progressing well and on schedule. LENSAR is targeting submission of a 510(k) application with the U.S. FDA by the end of 2021, with commercial launch expected in 2022. We remain committed to LENSAR and the development of its next-generation technology while we pursue the optimal path to monetize this investment. Our past capitalization of LENSAR has positioned it for growth, which has resulted in positive revenue and volume growth and the current capitalization, allowing it to continue with its growth initiatives. Turning to our current portfolio of royalty assets on Slide 10. We received $21 million in net cash priorities from all of our royalty rights in the fourth quarter of 2019, up from $20.9 million in the year ago quarter. However, net royalty revenues, which includes cash royalties received as well as changes in fair value of our royalty rights assets, were negative $26.8 million compared with positive $19.1 million in the prior year period. The decrease in royalty revenue is primarily related to the decrease in fair value of the royalty rights for the type 2 diabetes products acquired from Assertio Therapeutics. This basket of royalty right has already been a very good investment for PDL. It was acquired for $260.5 million from Depomed, now Assertio, in 2013, and for year-end 2019 returned more than $452 million. Bausch Health markets Glumetza, our single largest royalty contributor. In the second half of 2019, they signaled an accelerated shift in channel mix that was expected to result in a substantial decline in net selling prices that would impact the run rate for Glumetza net sales in the fourth quarter and beyond, and in turn, PDL revenues from these assets. In addition, expected delays in the international launches of the XR combination products marketed by Lilly and Janssen in our Assertio asset pool together led to a net value impairment of $46.3 million for this royalty asset in the fourth quarter. Notwithstanding this impairment as well as the impairment of our AcelRx royalties in Q2, we are very pleased with the high quality of royalty assets and expect they will continue to produce strong cash flows, making them attractive acquisition candidates in a market where demand for royalty assets is high. We received $79.3 million in net cash royalties in 2019 compared to -- compared with $78 million in 2018, far exceeding the raised guidance we announced on our last earnings call. Switching to Noden Pharma on Slide 11. Due to changes in our strategy for Noden as a result of our monetization plan, we recorded an impairment of its intangible asset value of $22.5 million in the fourth quarter, which speaks more to our longer-term plans for this entity than it does for its current operating results. Our actions in 2019 to increase the profitability of Tekturna in the U.S. and to mitigate the impact of generic competitions paid off. Excluding the year-end impairment charge, Noden achieved operational profitability with net operating income of $3.4 million for 2019. We significantly reduced the Noden cost structure by eliminating our domestic sales organization in 2018 and by terminating all promotional efforts following the generic launch in 2019. We are pleased that branded Tekturna and our authorized generics are together maintaining a 73% share at year-end. Moving on to Evofem Biosciences on Slide 12. Evofem was a strong performer for PDL in 2019 with our investment in this publicly traded women's health company generating immediate returns. Our 28% equity stake at Evofem posted a net gain of $18.3 million for the fourth quarter, with shares of Evofem increasing 71% between our initial investment in April 2019 to year-end. Although Evofem's share price has declined recently, together with the broader equity market, it remains above our acquisition price. We are proud of our work with Evofem. During 2019, we assisted their talented management team in achieving major regulatory and clinical milestones. In late November, Evofem resubmitted a new drug application with the FDA for its drug candidate, Amphora, for the prevention of pregnancy. Very soon thereafter, Evofem reported positive top line result from the AMPREVENCE Phase IIb trial evaluating Amphora for the prevention of chlamydia and gonorrhea. We expect additional catalysts for value creation in 2020 with a PDUFA date for Amphora for prevention of pregnancy in late May, based on an anticipated 6-month FDA review. Commercial launch of Amphora for the prevention of pregnancy subject to FDA approval is anticipated in the second half of 2020. So in summary, we are very confident in our ability to execute our monetization plan and to unlock significant value for our stockholders. With that, I'd like to turn the call over to Ed Imbrogno to discuss our financial results. Ed? -------------------------------------------------------------------------------- Edward A. Imbrogno, PDL BioPharma, Inc. - VP, CFO & CAO [4] -------------------------------------------------------------------------------- Thank you, Dominique. Please turn to our income statement on Slide 13. Total revenues for the fourth quarter of 2019 were negative $5.8 million and included $21 million in product revenue and negative $26.8 million in revenue from royalty rights change in fair value. Among the highlights, product revenue from LENSAR was $8.5 million, up 19% from the prior year period and up 5% from the third quarter of 2019. LENSAR procedure volume for the fourth quarter increased 41% over the prior year period. Product revenue from Noden Pharma was $12.4 million compared with $18.8 million in the prior year period, with revenue of $4.3 million in the U.S. and $8.1 million in the rest of the world. As Dominique mentioned, U.S. market share for branded Tekturna and our authorized generic was 73%, relatively unchanged from the third quarter of 2019. Net royalty payments from acquired royalty rights and a change in fair value of the royalty rights assets were negative $26.8 million compared with positive $19.1 million in the prior year period. The reduction was primarily related to the decrease in fair value of the royalty rights for the type 2 diabetes products acquired from Assertio Therapeutics. Turning to operating expenses. In the fourth quarter of 2019, total operating expenses were $64 million compared with $11.6 million for the prior year period. The increase in operating expenses was a result of the following factors: an impairment in the Noden intangible assets of $22.5 million due to a change in strategy for Noden, as previously mentioned; a prior year benefit for the release of the Noden continued consideration liability of $19.2 million with no comparable adjustment in 2019; a $10.8 million impairment of the CareView Communications note receivable compared to an $8.2 million impairment in the prior year quarter; higher R&D costs for LENSAR associated with the development of its next-generation technology; higher G&A expenses, primarily due to higher compensation costs, which were mainly the result of the prior year expense reversal of a significant portion of the employee long-term incentive award; increased professional service expense and an increase in cost of goods sold, primarily due to Noden product sales outside of the United States, which were partially offset by a decrease in sales and marketing expenses for our Noden subsidiary. For the 3 months ended December 31, 2019, our net loss was $54.9 million or $0.48 per share, and this compares with net income of $16.3 million or $0.11 per diluted share for the prior year period. Moving on to our full year results on the same slide. Total revenues for 2019 were $54.8 million and included $85.8 million in product revenue and a negative $31 million in revenue from royalty rights change in fair value. Product revenue from LENSAR was $30.7 million, up 25% from 2018. LENSAR procedure volume for 2019 increased 33% from the prior year. Product revenue from Noden Pharma was $55.1 million compared with $80.8 million for 2018. Sales for 2019 were comprised of $25.3 million in the U.S. and $29.8 million in the rest of the world compared with $40.5 million and $40.3 million, respectively, in the prior year. The decline in sales of branded Tekturna in the U.S. is due primarily to the launch of an authorized generic of Tekturna and the launch of a third-party generic of aliskiren late in the first quarter of 2019. The decline in sales in the rest of the world is due to lower sales volume of Rasilez in certain territories, in part reflecting additional measures to maximize product profitability. Revenue from royalty rights change in fair value was negative $31 million for 2019 compared with positive $85.3 million for the prior year. The decrease is primarily related to a noncash adjustment to the AcelRx and Assertio royalty asset fair value of negative $60 million and negative $46.3 million, respectively. Interest revenue decreased by $2.3 million from 2018 due to modifications to our agreement with CareView Communications with deferred interest payments for 2019. Royalties from PDL's licensees to the Queen et al. patents were minimal for 2019 compared with $4.5 million for 2018, reflecting the runout of the royalties on the sales of Tysabri. Operating expenses for 2019 decreased by 38% to $154.6 million compared with $248.7 million for 2018. The decrease primarily resulted from the following factors: a $22.5 million impairment for the Noden intangible asset in 2019 compared with a $152.3 million impairment in 2018; lower intangible asset amortization of $9.5 million due to the 2018 impairment; decreased sales and marketing expenses of $8.7 million, primarily due to Noden's reduction in sales force and change to a nonpersonal promotion strategy in anticipation of a launch of a third-party generic form of aliskiren in 2018 and the discontinuance of the nonpersonal promotion strategy in early 2019 upon the launch of our authorized generic. These were partially offset by the prior year benefit for the release of a Noden contingent consideration liability of $41.6 million; increased cost of goods sold of $5.2 million, primarily due to termination provisions in a Noden supply agreement amended in June 2019 involving end of contract fees as well as increased LENSAR product sales; increased research and development expenses of $4.4 million, primarily related to the acquisition of intellectual property supporting our second-generation LENSAR product; and a $10.8 million impairment of the CareView Communication note receivable in 2019 compared with an $8.2 million impairment in 2018. For 2019, our GAAP net loss was $70.4 million or $0.59 per share compared with a GAAP net loss of $68.9 million or $0.47 per share for the prior year. Turning to our non-GAAP financial results on Slide 14. We adjusted our Q4 2019 GAAP net loss of $54.9 million for the mark-to-market changes in fair value, amortization of intangible assets and other noncash items. This resulted in non-GAAP net income of $4.2 million in the fourth quarter of 2019, which compares with $15.7 million for the prior year period. We adjusted our full year 2019 GAAP net loss of $70.4 million with the same adjustments as the fourth quarter, which resulted in non-GAAP net income of $39.1 million as compared with non-GAAP net income of $60.4 million for 2018. Turning to our balance sheet on Slide 15. We had cash and cash equivalents of $193.5 million as of December 31, 2019, compared with $394.6 million as of December 31, 2018. This reduction in cash is a result of $97.9 million used to repurchase debt, $86.9 million used for our stock repurchase program, $60 million used for our investment in Evofem, net cash used in operations of $32.4 million and costs incurred in the exchange of convertible debt of $4.4 million. The reduction was partially offset by the proceeds from royalty rights of $79.3 million and cash proceeds from the sale of intangible assets of $5 million. With that, we're ready to open the call for questions. Operator? -------------------------------------------------------------------------------- Dominique P. Monnet, PDL BioPharma, Inc. - CEO, President & Director [5] -------------------------------------------------------------------------------- So while we are waiting for the first question, I'd like to congratulate Ed Imbrogno on his promotion to Chief Financial Officer, which we announced on Monday. Ed has made highly valued contributions since joining PDL in October of 2018 and will continue to be instrumental for monetization strategy. Okay, operator, we're ready for the first question. ================================================================================ Questions and Answers -------------------------------------------------------------------------------- Operator [1] -------------------------------------------------------------------------------- (Operator Instructions) Your first question will come from Max Jacobs of Edison Group. -------------------------------------------------------------------------------- Maxim Jacobs, Edison Investment Research Limited - Managing Partner & Director of Healthcare Research for North America [2] -------------------------------------------------------------------------------- And Congratulations, Ed. -------------------------------------------------------------------------------- Edward A. Imbrogno, PDL BioPharma, Inc. - VP, CFO & CAO [3] -------------------------------------------------------------------------------- Thank you. -------------------------------------------------------------------------------- Maxim Jacobs, Edison Investment Research Limited - Managing Partner & Director of Healthcare Research for North America [4] -------------------------------------------------------------------------------- So I was just wondering, in terms of the sale of the company as a whole, what kinds of companies or what kinds of buyers are you targeting for that? Are they more on the financial side, sort of like a private equity firm? -------------------------------------------------------------------------------- Dominique P. Monnet, PDL BioPharma, Inc. - CEO, President & Director [5] -------------------------------------------------------------------------------- That's a very good question, Max. I think we are only reaching out now. And as I mentioned, BofA Securities is going to be leading that effort. We want to make sure that we reach out to any potential buyers. It is likely that this transaction, because of the nature of our portfolio, is going to be more financial buyers than strategic ones. I think you -- I think it's embedded in your question, and I think it's a fair assumption. Beyond that, it's a process which is ongoing now. So we will keep you informed as it progresses. -------------------------------------------------------------------------------- Maxim Jacobs, Edison Investment Research Limited - Managing Partner & Director of Healthcare Research for North America [6] -------------------------------------------------------------------------------- Okay, great. That's very helpful. And then kind of related to that, I mean, since these are financial buyers, do you think that the current market turmoil might impact the timing of the monetization? -------------------------------------------------------------------------------- Dominique P. Monnet, PDL BioPharma, Inc. - CEO, President & Director [7] -------------------------------------------------------------------------------- It is possible for some of our assets. I mean like if you look at the Evofem stock holding, although it is higher that -- as I mentioned, that the price at which we acquired those shares are a little less than a year ago. I think we -- the rest of the asset, I am not sure are going to be very sensitive to that. I think we have royalties which truly are in high demand right now. If anything, in that current environment, the value of these royalties is at least as strong as it was before. And with regard to other transactions, we'll see how it evolves. And we will make sure that -- we are not in a hurry, although we do want to aim at completing that process by year-end. We certainly are not going to do that in a way which would impact negatively the value of the assets. So at this point, because we are less dependent on our share price, at least the value of the share of PDL today is going to be counted in the sum of the proceeds which are going to be returned to shareholders in the form of redemptions. And so I think from that perspective, for somebody who is taking a moderate medium-term perspective, the turmoil in the market really is not affecting us very much besides a short-term impact on our share price. -------------------------------------------------------------------------------- Operator [8] -------------------------------------------------------------------------------- Your next question will come from Kenneth Atkins with Cowen and Company. -------------------------------------------------------------------------------- Kenneth Craig Atkins, Cowen and Company, LLC, Research Division - Research Associate [9] -------------------------------------------------------------------------------- You mentioned during the call that the time line for monetization of your assets has accelerated versus prior guidance. Have you received any indications of interest for specific assets? Or what gives you confidence that the monetization process can be completed during 2020? -------------------------------------------------------------------------------- Dominique P. Monnet, PDL BioPharma, Inc. - CEO, President & Director [10] -------------------------------------------------------------------------------- Well, we put together a plan in partnership with the 4 -- I mean, the 3 key partners, which I mentioned. And we will look at this, and we really believe that we can execute within that time line. I think, clearly, some elements -- we are right now in an environment which has changed very rapidly, so it is possible that it would entail some delays. But at this point, our commitment is to try to kind of complete that process within a year. We think it is feasible to get that done. And it is bringing a number of significant benefits, including in terms of eliminating some fiscal interdependencies. And so we -- that's where we stand now. Now it is a target, Kenneth. And I think we will see how it pans out. The expression of interest, I cannot comment on that now. The process are ongoing, and they are still in the early stage, but we are encouraged so far with the expression of interest we have received. -------------------------------------------------------------------------------- Kenneth Craig Atkins, Cowen and Company, LLC, Research Division - Research Associate [11] -------------------------------------------------------------------------------- Okay. And then for Evofem, would you wait for an FDA decision for Amphora before selling your holdings in the common stock? Or what's your thinking there? -------------------------------------------------------------------------------- Dominique P. Monnet, PDL BioPharma, Inc. - CEO, President & Director [12] -------------------------------------------------------------------------------- Well, I think there are a number of options. I think, clearly, we have an eye on the catalyst for value creations, and we are -- we really are exploring the different options that we have right now. And in partnership with Torreya. We're also getting some input at this point from SVB Leerink on an overall strategy. As I mentioned, we have engaged them with the Board to advise us on overall liquidation and monetization strategies. But we're working with Torreya on this, and we'll see where and what approach, we believe, is going to be maximizing the value that we can return to our shareholders. Thank you. I'm sorry we missed your health care conference. I think we had the coronavirus on -- in our sight, and we didn't want to take any risk on that perspective, but thanks again for the invitation. -------------------------------------------------------------------------------- Operator [13] -------------------------------------------------------------------------------- At this time, there are no further questions. I would now like to turn the conference back over to Dominique for any closing remarks at this time. -------------------------------------------------------------------------------- Dominique P. Monnet, PDL BioPharma, Inc. - CEO, President & Director [14] -------------------------------------------------------------------------------- Well, thank you very much to all of you for joining us today. We look forward to updating you on our progress during our next quarterly call in May. In the meantime, we wish you a wonderful rest of your day. -------------------------------------------------------------------------------- Operator [15] -------------------------------------------------------------------------------- Ladies and gentlemen, this concludes today's conference call. Thank you for participating. You may now disconnect.