PDL BioPharma Inc (NASDAQ:PDLI) was founded as Protein Design Labs, Inc. in 1986. Its founders were motivated by the need to impact patients living with different cancers and other debilitating diseases. Throughout its history, the company has pioneered and enabled discovering a new generation of targeted treatments.
Today, PDL has taken another direction into its monetization strategy. The biopharma, Inc. has sold its three royalty interests for Kybella®, Zalviso®, and Coflex® to SWK Funding, LLC. The wholly-owned subsidiary of SWK Holdings Corporation will part with $4.35 million in cash through a definitive agreement. The deal is also expected to play a significant role in benefiting its stockholders during its liquidation and dissolution.
SWK Holdings Partners with Ethical Product Marketers and Royalty Holders
PDL will not only receive cash from the sale of royalties but may also receive the qualification for Federal tax benefits under the CARES Act. Additionally, once the transaction is executed, there could be a recognition of ordinary tax losses, which again could be applied to prior tax years for which PDL was a contributor.
SWK Holdings Corporation has come a long way as a specialized finance company but with a primary target on the global healthcare sector. Nonetheless, it also works with life science companies, institutions, and inventors, thanks to its broad experience related to structured financing and investment. Partnerships with ethical product marketers and royalty holders enable the corporation to offer flexible and long-term financing solutions with attractive costs.
SWK Holdings is confident about achieving other optimal partnerships through its financing structures. Besides, there hundred so inventors and companies seeking capital for expansion. Thus there are more opportunities to grow its specialty finance business.
PDL is Pursuing Both Short Term and the Intermediate-Term Returns
PDL’s investment is primarily with companies with pharmaceutical products. The company says returns from such are attractive even though they are either short term or intermediate-term.
Apart from royalty monetization, the company also applies debt structures and hybrids as investments to build value for its stockholders and will soon bring on board equity investments.