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Last Update: 19-Dec-11 09:38 ET
PDL BioPharma Trades Lower Following A Weak Fourth Quarter Revenue Forecast
PDL BioPharma (PDLI $5.98 -0.03) is trading lower hits morning after forecasting that fourth quarter revenue will be below consensus.
The company said it expects revenue for the fourth quarter to be approx. $72 million, well below the $82.46 million Capital IQ Consensus Estimate.
The forecasted fourth quarter revenue decline is primarily driven by reduced royalties from the third quarter in 2011 sales of Avastin and Herceptin partially offset by increased royalties from third quarter sales of Lucentis and Tysabri. Sales of Avastin, Herceptin, Lucentis, and Xolair (the Genentech (RHHBY) 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.
The revenue guidance for fourth quarter is net of the estimated payment due under their February 2011 settlement agreement with Novartis (NVS), which is based on a portion of the royalties that the co receives for Lucentis sales made by Novartis outside of the United States. The fourth quarter royalty payment received from Genentech included royalties generated on all worldwide sales.
The company said it expects revenue for the fourth quarter to be approx. $72 million, well below the $82.46 million Capital IQ Consensus Estimate.
The forecasted fourth quarter revenue decline is primarily driven by reduced royalties from the third quarter in 2011 sales of Avastin and Herceptin partially offset by increased royalties from third quarter sales of Lucentis and Tysabri. Sales of Avastin, Herceptin, Lucentis, and Xolair (the Genentech (RHHBY) 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.
The revenue guidance for fourth quarter is net of the estimated payment due under their February 2011 settlement agreement with Novartis (NVS), which is based on a portion of the royalties that the co receives for Lucentis sales made by Novartis outside of the United States. The fourth quarter royalty payment received from Genentech included royalties generated on all worldwide sales.
