J.P. Morgan Remains Uncertain on PDL BioPharma

In a research report published by J.P. Morgan yesterday they reiterate their uncertainty toward PDL BioPharma (NasdaqGS: PDLI) due to OUS royalty disagreements.

PDLI did receive their OUS royalty payment in August but J.P. Morgan feels payment expected at the end of November is uncertain. According to J.P. Morgan, PDLI has filed a complaint against Genentech, Roche, and Novartis in an attempt to obtain a court order stating that Genentech is obligated to pay royalties on OUS sales of Genentech products. Genentech has filed motions to dismiss the complaint.

J.P. Morgan writes, "Given this continued risk and uncertainty regarding timelines for a potential resolution, we are maintaining our Neutral rating."

PDLI closed Wednesday at $5.56.