PDL BioPharma Inc (“PDL” or the “Company”) (Nasdaq: PDLI) announces the signing and closing of a definitive agreement for the sale of three royalty interests for Kybella®, Zalviso®, and Coflex® (collectively the “Royalties”) to SWK Funding, LLC (“SWK”), a wholly owned subsidiary of SWK Holdings Corporation (Nasdaq: SWKH), in exchange for PDL to receive $4.35 million in cash.
“The sale of these Royalties to SWK represents another step in the execution of our monetization strategy,” commented PDL’s President and CEO Dominique Monnet. “This transaction is expected to generate meaningful benefits for our stockholders as we move toward liquidation and dissolution.”
In addition to the cash proceeds from the sale to SWK, PDL believes that this transaction may qualify for Federal tax benefits under the CARES Act. In connection with its monetization process, PDL expects to execute transactions in 2020 that may result in the recognition of ordinary tax losses that, under the CARES Act, could be applied to prior tax years in which PDL was a substantial tax payor. At this time, however, there can be no assurance that such tax benefits will be realized.
BofA Securities, Inc. acted as sole structuring advisor to PDL for the transaction. BofA Securities, Inc. will continue the sale process for the Company’s royalty interests in Glumetza®, Jentadueto® XR, Invokamet® XR, and Synjardy® XR (collectively “the Assertio Royalties”) and the remaining royalty interest in Cerdelga®.
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Source: Biospace
