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PDL BioPharma says it expects $125M in 2Q revenue

INCLINE VILLAGE, Nev. (AP) -- PDL BioPharma Inc. said Wednesday it expects about $125 million in revenue in the second quarter on greater payments from sales of the breast cancer drug Herceptin, the eye drug Lucentis, and the multiple sclerosis drug Tysabri.

The company said royalty revenue increased about 2 percent compared to the second quarter of 2011, when it reported $122.1 million in royalty revenue. PDL helped develop several drugs marketed by Genentech, a unit of the Swiss pharmaceutical company Roche AG. It also helped develop Tysabri, which is marketed by Biogen Idec Inc. and Elan Corp. PLC. Its revenue in the second quarter is based on sales Genentech and Elan made in the first quarter.

The revenue estimate does not include a payment PDL makes to Novartis AG on Lucentis sales.

Analysts expected PDL to report $129.6 million in second-quarter revenue, according to FactSet.

PDL said Herceptin sales grew 4 percent in the first quarter. The drug is used to treat a type of breast cancer that overproduces a particular protein, and PDL said Roche attributed the improvement in sales to increased use of genetic testing for breast cancer, as well as better-quality testing. It also cited greater use of Herceptin in developing countries, including Latin America and Asia-Pacific region countries, and greater use of the drug as a treatment for stomach cancer.

Sales of Lucentis climbed 15 percent after the drug won additional marketing approvals in the U.S. and Europe. Sales of the cancer drug Avastin declined 1 percent after the Food and Drug Administration revoked its approval as a treatment for breast cancer. Sales of the asthma drug Xolair also improved.

PDL said first-quarter sales of Tysabri grew 13 percent.

Shares of PDL BioPharma rose 9 cents to $6.47 Wednesday and the stock was unchanged in aftermarket trading.