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PDL BioPharma, Inc.
(PDL)
today announced royalty revenue guidance for the first
quarter ending March 31, 2013, of approximately $92 million, as compared with
actual royalty revenue of $77 million for the first quarter of 2012, a 19
percent increase.
(Logo: http://photos.prnewswire.com/prnh/20110822/SF55808LOGO )
The forecasted growth in royalty revenues is driven by increased fourth
quarter 2012 sales for all licensed products for which PDL receives royalties
in the first quarter of 2013. Sales of Avastin^®, Herceptin^®, Lucentis^®,
Xolair^® and Perjeta^™ (the Genentech Products) are subject to a tiered
royalty rate for product that is made or sold in the United States and a flat
royalty rate of three percent for product that is manufactured and sold
outside of the United States (ex-US manufactured and sold). The net sales
thresholds and the applicable royalty rates for the Genentech Products are
outlined below: Â
Genentech Products Made or Sold in US Royalty Rate
Net sales up to $1.5 billion 3.0%
Net sales between $1.5 billion and up to $2.5 billion 2.5%
Net sales between $2.5 billion and up to $4.0 billion 2.0%
Net sales exceeding $4.0 billion 1.0%
Genentech Products Made and Sold ex-US
Net sales 3.0%
The first quarter royalty payment received from Genentech included royalties
based on worldwide sales.
Revenue guidance for the first quarter of 2013 is net of an estimated payment
due under our February 2011 settlement agreement with Novartis AG (Novartis).
PDL pays to Novartis certain amounts based on net sales of Lucentis, made by
Novartis, during calendar year 2011 and beyond. The amount paid is less than
we receive in royalties on such sales.
Reported worldwide sales for Avastin sales increased 10 percent in the fourth
quarter of 2012 when compared to the same period in 2011. Ex-U.S.
manufactured and sold Avastin sales represented 50 percent of total Avastin
sales in the fourth quarter of 2012 as compared with 27 percent in the fourth
quarter of 2011.
Reported worldwide sales for Herceptin increased 11 percent in the fourth
quarter of 2012 when compared to the same period in 2011. Ex-U.S. manufactured
and sold Herceptin sales represented 41 percent of total Herceptin sales in
the fourth quarter of 2012 as compared with 35 percent in the fourth quarter
of 2011.
Reported worldwide sales for Lucentis increased 12 percent in the fourth
quarter of 2012 when compared to the same period in 2011. All sales of
Lucentis were from inventory produced in the United States.
Reported worldwide sales for Tysabri increased 16 percent for the fourth
quarter of 2012 compared to the same period in 2011. Tysabri royalties are
determined at a flat rate as a percentage of sales regardless of location of
manufacture or sale.
The sales information presented above is based on information provided by
PDL's licensees in their quarterly reports to the Company as well as from
public disclosures made by PDL's licensees.
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