UPDATE: Piper Jaffray Initiates Coverage On PDL BioPharma, Inc.

In a report published Tuesday, Piper Jaffary noted its initiation of coverage on PDL BioPharma, Inc.

, granting it a neutral rating and setting a price target of $8.5. Noted in the article by Piper Jaffary, "In December 2014 the major Queen, et al. antibody-humanization patents that have provided the majority of PDL's cash flows will expire. Soon thereafter, the company will return cash to investors or continue to manage other potential royalty streams, or some hybrid of these two options." Questions have persisted as to when/where the royalties that act as the key driver of PDL's valuation will end, and how ongoing legal litigation has created both uncertainty and potential upside. PDLI closed Monday at $8.11 and is currently trading up 1.11% since market open hours.