Exhibit 99.3
PDL BioPharma, Inc.
Q1 2014
May 12, 2014
Following are some of the key points regarding PDL’s first quarter 2014 financial and business results.
Net Income
| • | Net income in the first quarter of 2014 was $72.9 million, or $0.44 per diluted share as compared with net income in the first quarter of 2013 of $53.5 million, or $0.36 per diluted share. The increase in net income in the first quarter is primarily due to the increase in royalty revenues. |
2014 Dividends
| • | On January 29, 2014, PDL’s Board of Directors declared regular quarterly dividends of $0.15 per share of common stock, payable on March 12, June 12, September 12 and December 12 of 2014 to all stockholders who own shares of PDL on March 5, June 5, September 5 and December 5 of 2014, the record dates for each of the dividend payments, respectively. On March 12, 2014, PDL paid the first quarterly dividend to stockholders of record totaling $24.0 million using earnings generated in the first quarter of 2014. |
Kaleo Note Purchase
| • | On April 1, 2014, PDL acquired $150 million of secured notes from Accel 300, LLC, a wholly-owned subsidiary of kaleo, Inc. (kaleo). The notes are secured by 100 percent of royalties from kaleo’s first approved product, Auvi-Q™, which uses a new system for the delivery of epinephrine for the treatment of severe allergic reactions that can be life-threatening, i.e., anaphylaxis, and 10 percent of net sales of kaleo’s second proprietary auto-injector based product, EVZIO™, which uses the same technology to deliver naloxone for the treatment of patients who overdose on opioids. |
| • | The secured notes carry interest at 13 percent per annum, paid quarterly in arrears on principal outstanding. The principal balance of the secured notes is repaid to the extent that the revenue interests exceed the quarterly interest payment, as limited by a quarterly payment cap. The final maturity of the secured notes is March 2029, although PDL anticipates repayment in 2020. Kaleo may redeem the secured notes at any time, subject to a redemption premium. |
Updates on Approved Royalty Bearing Products
Avastin® (bevacizumab):
| • | On April 15, 2014, Genentech/Roche reported that 1Q14 worldwide sales were $1.753 billion (assumes CHF1 = USD1.1204) and increased by 9%. |
| ◦ | US: Significant increase in sales in colorectal cancer due to label expansion through multiple lines of therapy. |
| ◦ | EU: Strong sales driven by ovarian and colorectal cancers with the latter due to the label expansion through multiple lines of therapy. |
| ◦ | Japan: Steady growth in Japan in colon, lung, and breast cancers and GBM. |
| • | Genentech/Roche intend to file for approval for treatment of cervical cancer in US and EU in 2014. |
Herceptin® (trastuzumab):
| • | On April 15, 2014, Genentech/Roche reported that 1Q14 worldwide sales were 1.710 billion* (Assumes CHF1 = USD1.1204) and increased by 3%. |
| ◦ | US: Stable market share. |
| ◦ | EU: Volume growth but somewhat offset by price decreases. |
| ◦ | Intl: Growth driven by China and Latin America. |
| • | Subcutaneous formulation launched in 18 countries with good uptake where available. |
Lucentis® (ranibizumab):
| • | On April 15, 2014, Genentech/Roche reported that 1Q14 US sales were $456 million and increased by 8%. |
| ◦ | AMD and RVO: Stable use and increasing size of market. |
| ◦ | DME: Increasing patient share but also expecting competition. |
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PDL BioPharma, Inc.
Q1 2014
May 12, 2014
| • | On April 24, 2014, Novartis reported that 1Q14 ex-US sales were $620 million and increased by 6%. |
Tysabri® (natalizumab):
| • | On April 23, 2014, Biogen Idec reported that 1Q14 worldwide sales were $441 million, a decrease of 3% when compared to global in-market sales in 1Q13. |
Xolair® (omalizumab):
| • | On April 15, 2014, Genentech/Roche reported that 1Q14 US sales were $230 million (Assumes CHF1 = USD1.1204) and increased by 15%. |
| • | On April 24, 2014, Novartis reported that 1Q14 ex-US sales were $173 million and increased by 24%. |
| • | On March 6, 2014, Novartis reported that the EU had approved Xolair as an add on therapy for chronic spontaneous idiopathic urticaria. |
| • | On March 21, 2014, Genentech/Roche announced that the FDA had approved Xolair for chronic idiopathic urticaria. |
Actemra® (tocilizumab):
| • | On April 27, 2014, Roche said that the European Commission approved a subcutaneous formulation of RoActemra tocilizumab as monotherapy or in combination with methotrexate to treat moderate to severe rheumatoid arthritis in patients who have inadequate response to or who are intolerant of DMARDs or TNF inhibitors. |
| • | On April 15, 2014, Genentech/Roche reported that 1Q14 worldwide sales increased by 23% year over year. |
| ◦ | US: 1Q14 sales increased 22% year over year to $96 million with growth driven by monotherapy use. |
| ◦ | Japan: 1Q14 sales increased 49% year over year to $59 million. Biggest contributor after launch of subcutaneous formulation. |
| • | On December 20, 2013, Genentech/Roche announced positive CHMP opinion in EU with respect to approval of the subcutaneous formulation. |
| • | On October 21, 2013, Genentech/Roche announced approval of the subcutaneous formulation in US. |
Perjeta® (pertuzumab):
| • | On April 15, 2014, Genentech/Roche reported 1Q14 worldwide sales were $199 million (Assumes CHF1 = USD1.1204) and increased by 274% year over year. |
| ◦ | US: Strong adoption in neo-adjuvant setting and continued growth in first line HER2-positive metastatic breast cancer. |
Kadcyla® (TDM-1 or ado-trastuzumab emtansine):
| • | On April 15, 2014, Genentech/Roche reported 1Q14 worldwide sales were $114 million (Assumes CHF1 = USD1.1204) and increased by 474%. |
| ◦ | US: Increasing use in second line treatment of HER2-positive metastatic breast cancer. |
| ◦ | EU: Launch ongoing. |
| ◦ | Japan: Launch expected in 2Q14. |
Gazyva™ (Obinutuzumab or GA101):
| • | On April 15, 2014, Genentech/Roche announced 1Q14 US sales of $9 million (Assumes CHF1 = USD1.1204). |
| • | Gazyva was approved in the US on November 1, 2013, for previously untreated chronic lymphocytic leukemia in combination with chlorambucil. |
Forward-looking Statements
This document contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Each of these forward-looking statements involves risks and uncertainties. Actual results may differ materially from those, express or implied, in these forward-looking statements. Important factors that could impair the value of the Company's royalty assets, restrict or impede the ability of the Company to invest in new income generating assets and limit the Company's ability to pay dividends are disclosed in the risk factors contained in the Company's Annual Report on Form 10-K filed with the Securities and Exchange Commission, as updated by subsequent filings. All forward-looking statements are expressly qualified in their entirety by such factors. We do not undertake any duty to update any forward looking statement except as required by law.
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PDL BioPharma, Inc.
Q1 2014
May 12, 2014
| Royalty Revenue by Product ($ in 000's) * | ||||||||||
| Avastin | Q1 | Q2 | Q3 | Q4 | Total | |||||
| 2014 | 40,538 | — | — | — | 40,538 | |||||
| 2013 | 33,234 | 46,720 | 32,224 | 32,287 | 144,464 | |||||
| 2012 | 23,215 | 41,670 | 25,955 | 30,041 | 120,882 | |||||
| 2011 | 22,283 | 41,967 | 23,870 | 22,886 | 111,006 | |||||
| 2010 | 16,870 | 44,765 | 29,989 | 24,922 | 116,547 | |||||
| 2009 | 13,605 | 35,161 | 21,060 | 15,141 | 84,966 | |||||
| 2008 | 9,957 | 30,480 | 19,574 | 12,394 | 72,405 | |||||
| 2007 | 8,990 | 21,842 | 17,478 | 9,549 | 57,859 | |||||
| 2006 | 10,438 | 15,572 | 15,405 | 12,536 | 53,952 | |||||
| Herceptin | Q1 | Q2 | Q3 | Q4 | Total | |||||
| 2014 | 37,863 | — | — | — | 37,863 | |||||
| 2013 | 30,287 | 47,353 | 30,961 | 33,038 | 141,640 | |||||
| 2012 | 25,702 | 44,628 | 30,433 | 28,307 | 129,070 | |||||
| 2011 | 25,089 | 42,209 | 31,933 | 21,812 | 121,042 | |||||
| 2010 | 23,402 | 38,555 | 27,952 | 25,441 | 115,350 | |||||
| 2009 | 16,003 | 32,331 | 26,830 | 18,615 | 93,779 | |||||
| 2008 | 14,092 | 34,383 | 28,122 | 20,282 | 96,880 | |||||
| 2007 | 19,035 | 28,188 | 22,582 | 14,802 | 84,608 | |||||
| 2006 | 15,142 | 19,716 | 21,557 | 20,354 | 76,769 | |||||
| Lucentis | Q1 | Q2 | Q3 | Q4 | Total | |||||
| 2014 | 17,104 | — | — | — | 17,104 | |||||
| 2013 | 12,032 | 30,066 | 13,536 | 12,127 | 67,760 | |||||
| 2012 | 10,791 | 27,938 | 12,552 | 11,097 | 62,377 | |||||
| 2011 | 8,878 | 24,313 | 12,157 | 10,750 | 56,099 | |||||
| 2010 | 7,220 | 19,091 | 10,841 | 8,047 | 45,198 | |||||
| 2009 | 4,621 | 12,863 | 8,123 | 6,152 | 31,759 | |||||
| 2008 | 3,636 | 11,060 | 7,631 | 4,549 | 26,876 | |||||
| 2007 | 2,931 | 6,543 | 6,579 | 3,517 | 19,570 | |||||
| 2006 | — | — | 289 | 3,335 | 3,624 | |||||
| Xolair | Q1 | Q2 | Q3 | Q4 | Total | |||||
| 2014 | 9,559 | — | — | — | 9,559 | |||||
| 2013 | 5,930 | 10,025 | 7,334 | 7,330 | 30,619 | |||||
| 2012 | 5,447 | 8,609 | 6,504 | 6,145 | 26,705 | |||||
| 2011 | 4,590 | 7,621 | 5,916 | 5,823 | 23,949 | |||||
| 2010 | 3,723 | 6,386 | 4,980 | 4,652 | 19,741 | |||||
| 2009 | 2,665 | 5,082 | 4,085 | 3,722 | 15,553 | |||||
| 2008 | 1,488 | 4,866 | 3,569 | 2,927 | 12,850 | |||||
| 2007 | 1,684 | 3,942 | 3,332 | 2,184 | 11,142 | |||||
| 2006 | 2,263 | 2,969 | 3,041 | 2,495 | 10,768 | |||||
| Perjeta | Q1 | Q2 | Q3 | Q4 | Total | |||||
| 2014 | 3,892 | — | — | — | 3,892 | |||||
| 2013 | 340 | 1,414 | 748 | 879 | 3,381 | |||||
| 2012 | — | — | 58 | 250 | 308 | |||||
| 2011 | — | — | — | — | — | |||||
| 2010 | — | — | — | — | — | |||||
| 2009 | — | — | — | — | — | |||||
| 2008 | — | — | — | — | — | |||||
| 2007 | — | — | — | — | — | |||||
| 2006 | — | — | — | — | — | |||||
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PDL BioPharma, Inc.
Q1 2014
May 12, 2014
| Royalty Revenue by Product ($ in 000's) * | ||||||||||
| Kadcyla | Q1 | Q2 | Q3 | Q4 | Total | |||||
| 2014 | 2,393 | — | — | — | 2,393 | |||||
| 2013 | — | 551 | 830 | 859 | 2,240 | |||||
| 2012 | — | — | — | — | — | |||||
| 2011 | — | — | — | — | — | |||||
| 2010 | — | — | — | — | — | |||||
| 2009 | — | — | — | — | — | |||||
| 2008 | — | — | — | — | — | |||||
| 2007 | — | — | — | — | — | |||||
| 2006 | — | — | — | — | — | |||||
| Tysabri | Q1 | Q2 | Q3 | Q4 | Total | |||||
| 2014 | 12,857 | — | — | — | 12,857 | |||||
| 2013 | 12,965 | 13,616 | 11,622 | 12,100 | 50,304 | |||||
| 2012 | 11,233 | 12,202 | 11,749 | 12,255 | 47,439 | |||||
| 2011 | 9,891 | 10,796 | 11,588 | 11,450 | 43,725 | |||||
| 2010 | 8,791 | 8,788 | 8,735 | 9,440 | 35,754 | |||||
| 2009 | 6,656 | 7,050 | 7,642 | 8,564 | 29,912 | |||||
| 2008 | 3,883 | 5,042 | 5,949 | 6,992 | 21,866 | |||||
| 2007 | 839 | 1,611 | 2,084 | 2,836 | 7,370 | |||||
| 2006 | — | — | — | 237 | 237 | |||||
| Actemra | Q1 | Q2 | Q3 | Q4 | Total | |||||
| 2014 | 3,446 | — | — | — | 3,446 | |||||
| 2013 | 2,631 | 2,816 | 2,939 | 3,744 | 12,131 | |||||
| 2012 | 1,705 | 2,074 | 2,145 | 2,462 | 8,385 | |||||
| 2011 | 913 | 1,136 | 1,401 | 1,460 | 4,910 | |||||
| 2010 | 1,587 | 237 | 315 | 688 | 2,827 | |||||
| 2009 | 585 | 537 | 909 | 1,197 | 3,228 | |||||
| 2008 | 44 | — | 146 | 369 | 559 | |||||
| 2007 | 32 | — | — | 17 | 49 | |||||
| 2006 | — | — | — | — | — | |||||
| Gazyva | Q1 | Q2 | Q3 | Q4 | Total | |||||
| 2014 | 51 | — | — | — | 51 | |||||
| 2013 | — | — | — | — | — | |||||
| 2012 | — | — | — | — | — | |||||
| 2011 | — | — | — | — | — | |||||
| 2010 | — | — | — | — | — | |||||
| 2009 | — | — | — | — | — | |||||
| 2008 | — | — | — | — | — | |||||
| 2007 | — | — | — | — | — | |||||
| 2006 | — | — | — | — | — | |||||
| * As reported to PDL by its licensees | ||||||||||
| Totals may not sum due to rounding | ||||||||||
| Q1 2014 royalty revenue by product above do not include a $5 million payment received from Genentech in Q1 2014 for a retroactive settlement payment from 2013. | ||||||||||
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PDL BioPharma, Inc.
Q1 2014
May 12, 2014
| Reported Net Sales Revenue by Product ($ in 000's) * | ||||||||||
| Avastin | Q1 | Q2 | Q3 | Q4 | Total | |||||
| 2014 | 1,786,912 | — | — | — | 1,786,912 | |||||
| 2013 | 1,653,108 | 1,694,678 | 1,746,135 | 1,819,877 | 6,913,798 | |||||
| 2012 | 1,502,757 | 1,573,727 | 1,551,327 | 1,662,977 | 6,290,788 | |||||
| 2011 | 1,597,461 | 1,582,705 | 1,581,095 | 1,469,994 | 6,231,255 | |||||
| 2010 | 1,506,788 | 1,596,892 | 1,594,707 | 1,646,218 | 6,344,605 | |||||
| 2009 | 1,345,487 | 1,295,536 | 1,439,730 | 1,514,053 | 5,594,806 | |||||
| 2008 | 980,715 | 1,084,930 | 1,180,427 | 1,239,382 | 4,485,454 | |||||
| 2007 | 678,068 | 746,587 | 797,013 | 875,084 | 3,096,752 | |||||
| 2006 | 439,318 | 516,052 | 570,551 | 592,897 | 2,118,817 | |||||
| Herceptin | Q1 | Q2 | Q3 | Q4 | Total | |||||
| 2014 | 1,731,564 | — | — | — | 1,731,564 | |||||
| 2013 | 1,681,574 | 1,744,145 | 1,681,860 | 1,726,551 | 6,834,130 | |||||
| 2012 | 1,515,255 | 1,625,313 | 1,663,695 | 1,650,495 | 6,454,759 | |||||
| 2011 | 1,391,568 | 1,559,975 | 1,642,898 | 1,432,771 | 6,027,211 | |||||
| 2010 | 1,270,846 | 1,349,512 | 1,300,934 | 1,409,310 | 5,330,602 | |||||
| 2009 | 1,210,268 | 1,133,993 | 1,226,435 | 1,278,626 | 4,849,323 | |||||
| 2008 | 1,105,426 | 1,195,215 | 1,211,982 | 1,186,806 | 4,699,428 | |||||
| 2007 | 891,761 | 949,556 | 979,602 | 1,015,033 | 3,835,952 | |||||
| 2006 | 529,585 | 659,719 | 761,099 | 803,576 | 2,753,979 | |||||
| Lucentis | Q1 | Q2 | Q3 | Q4 | Total | |||||
| 2014 | 818,376 | — | — | — | 818,376 | |||||
| 2013 | 1,203,179 | 1,171,423 | 1,200,791 | 1,212,651 | 4,788,045 | |||||
| 2012 | 1,079,092 | 1,086,543 | 1,097,541 | 1,109,695 | 4,372,871 | |||||
| 2011 | 887,757 | 943,418 | 1,052,809 | 1,075,015 | 3,958,999 | |||||
| 2010 | 721,967 | 698,890 | 745,376 | 804,684 | 2,970,917 | |||||
| 2009 | 462,103 | 469,736 | 555,296 | 615,212 | 2,102,347 | |||||
| 2008 | 363,615 | 393,682 | 460,167 | 454,922 | 1,672,386 | |||||
| 2007 | 224,820 | 219,579 | 299,995 | 322,300 | 1,066,695 | |||||
| 2006 | — | — | 10,689 | 157,742 | 168,431 | |||||
| Xolair | Q1 | Q2 | Q3 | Q4 | Total | |||||
| 2014 | 425,243 | — | — | — | 425,243 | |||||
| 2013 | 341,309 | 365,778 | 391,900 | 401,333 | 1,500,321 | |||||
| 2012 | 310,234 | 314,638 | 347,796 | 340,431 | 1,313,100 | |||||
| 2011 | 267,754 | 277,642 | 310,874 | 314,911 | 1,171,182 | |||||
| 2010 | 228,859 | 225,878 | 251,055 | 263,389 | 969,179 | |||||
| 2009 | 184,669 | 181,086 | 211,006 | 219,693 | 796,454 | |||||
| 2008 | 137,875 | 169,521 | 177,179 | 183,753 | 668,329 | |||||
| 2007 | 129,172 | 130,700 | 144,250 | 147,754 | 551,876 | |||||
| 2006 | 95,241 | 99,354 | 112,608 | 118,002 | 425,204 | |||||
| Perjeta | Q1 | Q2 | Q3 | Q4 | Total | |||||
| 2014 | 158,809 | — | — | — | 158,809 | |||||
| 2013 | 34,008 | 55,076 | 66,353 | 87,949 | 243,386 | |||||
| 2012 | — | — | 5,080 | 25,000 | 30,079 | |||||
| 2011 | — | — | — | — | — | |||||
| 2010 | — | — | — | — | — | |||||
| 2009 | — | — | — | — | — | |||||
| 2008 | — | — | — | — | — | |||||
| 2007 | — | — | — | — | — | |||||
| 2006 | — | — | — | — | — | |||||
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PDL BioPharma, Inc.
Q1 2014
May 12, 2014
| Reported Net Sales Revenue by Product ($ in 000's) * | ||||||||||
| Kadcyla | Q1 | Q2 | Q3 | Q4 | Total | |||||
| 2014 | 91,031 | — | — | — | 91,031 | |||||
| 2013 | — | 21,459 | 73,626 | 85,906 | 180,991 | |||||
| 2012 | — | — | — | — | — | |||||
| 2011 | — | — | — | — | — | |||||
| 2010 | — | — | — | — | — | |||||
| 2009 | — | — | — | — | — | |||||
| 2008 | — | — | — | — | — | |||||
| 2007 | — | — | — | — | — | |||||
| 2006 | — | — | — | — | — | |||||
| Tysabri | Q1 | Q2 | Q3 | Q4 | Total | |||||
| 2014 | 428,561 | — | — | — | 428,561 | |||||
| 2013 | 434,677 | 451,358 | 387,407 | 403,334 | 1,676,776 | |||||
| 2012 | 374,430 | 401,743 | 391,623 | 408,711 | 1,576,508 | |||||
| 2011 | 329,696 | 356,876 | 388,758 | 381,618 | 1,456,948 | |||||
| 2010 | 293,047 | 287,925 | 293,664 | 316,657 | 1,191,292 | |||||
| 2009 | 221,854 | 229,993 | 257,240 | 285,481 | 994,569 | |||||
| 2008 | 129,430 | 163,076 | 200,783 | 233,070 | 726,359 | |||||
| 2007 | 30,468 | 48,715 | 71,972 | 94,521 | 245,675 | |||||
| 2006 | — | — | — | 7,890 | 7,890 | |||||
| Actemra | Q1 | Q2 | Q3 | Q4 | Total | |||||
| 2014 | 114,865 | — | — | — | ||||||
| 2013 | 87,703 | 91,374 | 97,961 | 124,815 | 401,852 | |||||
| 2012 | 56,662 | 66,624 | 71,505 | 82,053 | 276,843 | |||||
| 2011 | 30,433 | 35,370 | 46,709 | 48,671 | 161,183 | |||||
| 2010 | 52,908 | 5,405 | 10,493 | 22,919 | 91,725 | |||||
| 2009 | 19,504 | 17,920 | 30,313 | 39,888 | 107,625 | |||||
| 2008 | 1,452 | 1,377 | 5,981 | 12,305 | 21,115 | |||||
| 2007 | — | — | — | 1,137 | 1,137 | |||||
| 2006 | — | — | — | — | — | |||||
| Gazyva | Q1 | Q2 | Q3 | Q4 | Total | |||||
| 2014 | 3,095 | — | — | — | 3,095 | |||||
| 2013 | — | — | — | — | — | |||||
| 2012 | — | — | — | — | — | |||||
| 2011 | — | — | — | — | — | |||||
| 2010 | — | — | — | — | — | |||||
| 2009 | — | — | — | — | — | |||||
| 2008 | — | — | — | — | — | |||||
| 2007 | — | — | — | — | — | |||||
| 2006 | — | — | — | — | — | |||||
| * As reported to PDL by its licensee | ||||||||||
| Totals may not sum due to rounding | ||||||||||
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