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PDL BioPharma 4Q net income climbs 27 percent

INCLINE VILLAGE, Nev. (AP) -- PDL BioPharma Inc. said Friday its net income grew 27 percent in the fourth quarter on greater sales of the cancer drugs Avastin and Herceptin, which PDL helped develop.

The company worked with Swiss drugmaker Roche on Avastin and Herceptin, as well as the eye drug Lucentis and Biogen Idec Inc.'s multiple sclerosis drug Tysabri. PDL gets royalty payments based on sales of the drugs in the previous quarter. Roche said sales of Herceptin grew 14 percent to about $1.58 billion in the third quarter, and Avastin sales rose 11 percent to about $1.6 billion.

PDL said its fourth-quarter net income grew to $49.4 million, or 34 cents per share, from $38.9 million, or 24 cents per share. Revenue rose 18 percent, to $86 million from $72.8 million.

Analysts expected net income of 31 cents per share on $86.1 million in revenue, according to FactSet.

Avastin is used to treat a variety of types of cancer, including forms of the disease affecting the ovaries, lungs, and colon. Herceptin is used to treat breast and stomach cancers.

PDL will also get royalty payments on sales of the new breast cancer treatment Kadcyla. Kadcyla combines Herceptin with a powerful chemotherapy drug and a third chemical linking the medicines together. The chemical keeps the cocktail intact until it binds to a cancer cell. The Food and Drug Administration approved Kadcyla on Feb. 22.

The company said its net income rose 6 percent in 2012, reaching $211.7 million, or $1.45 per share, from $199.4 million, or $1.15 per share. Revenue increased 3 percent, to $374.5 million from $362 million.

Shares of PDL lost 4 cents to $6.95 during the regular trading session Friday, and rose 4 cents to $6.99 in aftermarket trading following the release of the earnings report.