PDL Biopharma (PDLI) 10-Q 2013 Q2 Quarterly report

Exhibit 12.1

PDL BIOPHARMA, INC.

COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES

(Unaudited)

(Amount in thousands, except for ratios)

											For the Six Months Ended June 30, 2013
	For the Years Ended December 31,
	2008		2009		2010		2011		2012
Earnings:
Income before income taxes	$	243,334	$	280,285	$	150,370	$	307,428	$	327,133	$	218,245
Add: fixed charges	14,285		19,430		43,578		36,153		29,097		12,081
Earnings	$	257,619	$	299,715	$	193,948	$	343,581	$	356,230	$	230,326
Fixed Charges:
Interest expense1	$	14,219	$	19,357	$	43,529	$	36,102	$	29,036	$	12,051
Estimated interest portion of rent expense2	66		73		49		51		61		30
Fixed charges	$	14,285	19,430		$	43,578	$	36,153	$	29,097	$	12,081
Ratio of earnings to fixed charges	18.03		15.43		4.45		9.50		12.24		19.07

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¹Interest expense includes amortization of debt discount and expenses.

² Represents the estimated portion of operating lease rental expense that is considered by us to be representative of interest and amortization of discount related to indebtedness.