PDL BioPharma, Inc. PDLI delivered earnings of 9 cents per share in the first quarter of 2019, beating the Zacks Consensus Estimate of 8 cents. Meanwhile, the bottom line matched the 9 cents reported in the year-ago period.
The company’s total revenues grossed $38.9 million in the first quarter, reflecting a 1% increase year over year. This upside is mainly attributable to higher product sales and royalty rights.
Shares of PDL have rallied 13.4% so far this year, outperforming the industry’s increase of 3.4%.
Quarter in Detail
Product revenues in the quarter under review were $26.7 million, up 14.2% year over year. The same included $20 million from the sales of Noden products — Tekturna and Tekturna HCT — and another $6.7 million from the sales of LENSAR laser system in the United States.
PDL recognized $12.3 million in revenues from royalty rights while royalties from PDL's licensees to the Queen et al. patents were less than $0.1 million. Meanwhile, the company did not register any interest revenues in the reported quarter.
Royalty revenues from the Queen et al. licenses were significantly lower than the year-ago period, mainly due to weak product supplies of Biogen’s BIIB multiple sclerosis drug, Tysabri.
On first-quarter conference call, the company stated that it does not expect to report any meaningful Tysabri royalty revenues in the future quarters of 2019.
PDL repurchased 13.1 million shares worth $44.4 million in the quarter. Last September, the company’s board of directors approved a new buyback program of $100 million. Since its initiation, PDL has successfully bought back 15.9 million shares.
In March, the authorized generic version of Tekturna (150 mg/300 mg tablets) was launched in the United States. The unveiling activities were carried out by the privately held pharmaceutical company, Prasco, LLC.
In April this year, PDL invested $30 million in Evofem Biosciences, Inc. EVFM as the first tranche of a planned $60-million transaction. During the first-quarter earnings call, management stated that if PDL exercises its right and completes the full transaction, it will own approximately 30% of Evofem's equity capital.
Evofem is a biopharmaceutical company, which develops products for women's sexual and reproductive health. It's lead investigational drug product, Amphora, is an on-demand, non-hormonal gel contraceptive for women.
PDL BioPharma, Inc. Price, Consensus and EPS Surprise
PDL BioPharma, Inc. price-consensus-eps-surprise-chart | PDL BioPharma, Inc. Quote
Zacks Rank & Other Stock to Consider
PDL currently carries a Zacks Rank #2 (Buy). Another top-ranked stock in the healthcare sector is Gilead Sciences, Inc. GILD, sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Gilead’s earnings estimates have been revised 3.8% upward for 2019 and 1.6% for 2020 over the past 60 days. The stock has risen 5.7% year to date.
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