PDL Biopharma 8K Results of Operations and Financial Condition | PDLI 1 Mar 13

Exhibit 99.3

PDL BioPharma, Inc.

Q4 / Year End 2012

March 1, 2013

Following are some of the key points regarding PDL’s fourth quarter 2012 financial and business results.

Net Income

●	Net income for the fourth quarter of 2012 was $49.4 million or $0.34 per diluted share as compared with net income of $38.9 million or $0.24 per diluted share for the same period of 2011.

●	Net income for full-year 2012 was $211.7 million, or $1.45 per diluted share as compared with net income of $199.4 million in 2011 or $1.15 per diluted share.

2012 and 2013 Dividends

●	We paid $0.15 per share of common stock, or $21.0 million, on December 14, 2012, to our stockholders of record on December 7, 2012, as part of our regular, quarterly dividend policy for 2012.

●

In January 2013, PDL announced that its board of directors declared that the regular, quarterly dividends to be paid to its stockholders in 2013 will be $0.15 per share of common stock. The $0.15 dividends will each be paid on March 12, June 12, September 12 and December 12 of 2013 to all stockholders who own shares of PDL on March 5, June 5, September 5 and December 5 of 2013, the record dates for each of the dividend payments, respectively.

Updates on Approved Royalty Bearing Products

Avastin^® (bevacizumab):

●	On January 30, 2013, Roche reported that 2012 worldwide sales increased by 6% over 2011 sales on a constant exchange basis.

In EU, higher sales were driven by the launch in ovarian cancer, and increased market share in lung cancer and breast cancer.

In Japan, higher sales were driven by increased uptake in colorectal cancer, non-small cell lung cancer and metastatic breast cancer.

●	On November 16, 2012, Genentech/Roche announced that the EU’s CHMP adopted a positive opinion regarding the use of Avastin in second line metastatic colorectal cancer.

A similar application has been granted priority review by the FDA in US.

Avastin is already approved for first line treatment of metastatic colorectal cancer in US and EU.

●	On November 19, 2012, Genentech/Roche reported additional details from a Phase 3 trial in patients with newly diagnosed glioblastoma that showed that treatment with Avastin plus radiation and chemotherapy increased progression-free-survival by 36% compared to radiation and chemotherapy.

Avastin is already approved for second line treatment of glioblastoma in US and EU.

●	On February 7, 2013, the National Institutes of Health announced that a trial in patients with recurrent and metastatic cervical cancer comparing Avastin plus two chemotherapies against two chemotherapies met its primary endpoint of improving median overall survival by 3.7 months.

Genentech/Roche said that they are analyzing the data to evaluate next steps.

Herceptin^® (trastuzumab):

●	On January 30, 2013, Roche reported that 2012 worldwide sales increased by 11% over 2011 sales on a constant exchange basis.

Much of the growth was seen in US and emerging markets.

Also contributing to the sales growth was increased HER2 testing and further uptake in HER2+ gastric cancer.

PDL BioPharma, Inc.

Q4 / Year End 2012

March 1, 2013

Lucentis® (ranibizumab):

●	On January 30, 2013, Roche reported that 2012 US sales decreased by 8% over 2011 sales on a constant exchange basis.

Roche said that it expects further pressure on sales for the treatment of age-related macular degeneration in 2013 partially offset by increased sales for the treatment of diabetic macular edema and stable share for the treatment of retinal vein occlusion.

●	On January 23, 2013, Novartis reported that 2012 ex-US sales increased by 22% over 2011 sales on a constant exchange basis.

Increased sales growth was driven by new launches for the treatment of diabetic macular edema and retinal vein occlusion.

Actemra^® (tocilizumab):

●	On January 30, 2013, Roche reported that 2012 worldwide sales increased by 33% over 2011 sales on a constant exchange basis.

On October 15, 2012, Genentech/Roche announced that the label had been expanded to include patients who had an inadequate response to one or more disease-modifying antirheumatic drugs (DMARDs).

Subcutaneous formulation filed for approval in US and EU in December 2012.

Perjeta™ (pertuzumab):

●	On January 30, 2013, Roche reported that 4Q12 demand increased by 53% over 3Q12 demand.

Over 75% of relevant physicians are already prescribing Perjeta.

Kadcyla™ (TDM-1 or ado-trastuzumab emtansine):

●	On February 22, 2013, Genentech/Roche announced that the FDA had approved the product for second line treatment of HER2+ metastatic breast cancer and first line treatment for those patients who relapse within six months following adjuvant therapy.

A similar application has been accepted for review in EU.

Kadcyla will be available in the US within two weeks.

Pricing is $9,800 per month, significantly higher than many estimates in the financial community.

Updates on Select Development Stage Potential Royalty Bearing Products

Obinutuzumab:

●

On January 30, 2013, Genentech/Roche announced positive results from Stage 1 of a Phase 3 trial in patients with previously untreated chronic lymphocytic leukemiathat showed treatment with obinutuzumab plus chemotherapy significantly reduced the risk of disease worsening or death compared to treatment with chemotherapy.

Stage1 also included a pre-planned progression-free-survival (PFS) futility analysis comparing obinutuzumab plus chemotherapy to Rituxan plus chemotherapy. The goal of the futility analysis was to evaluate the likelihood that the study would meet its pre-specified endpoint criteria during Stage 2 analysis - improved efficacy (PFS) in the direct comparison of obinutuzumab plus chemotherapy to Rituxan plus chemotherapy.

The independent Data and Safety Monitoring Board (DSMB) assessment concluded that Stage 2 of the study should continue until its final analysis.

PDL BioPharma, Inc.

Q4 / Year End 2012

March 1, 2013

Solanezumab:

●	On August 24, 2012, Lilly announced that both of its Phase 3 trials did not meet the primary endpoints of cognitive and functional benefit.

A pre-specified secondary subgroup analysis of the pooled data from both trials showed that solanezumab slowed the cognitive decline in patients with mild disease but not patients with moderate disease.

●	On December 12, 2012, Lilly said that it will commence an additional Phase 3 trial in patients with mild Alzheimer’s disease by no later than 3Q2013.

●	If solanezumab were to receive marketing authorization, PDL would receive a patent royalty of 3% in addition to a 12.5 year know-how royalty of 2% from date of first sale.

●	On January 18, 2013, the NIH's National Institute of Aging (NIA) announced that it and other federal agencies will fund a three year trial investigating the use of solanezumab in 1,000 patients with abnormal amyloid protein buildup but who are at the pre-symptomatic stage of Alzheimer's disease.

The leading hypothesis explaining Alzheimer's disease is that abnormal amyloid accumulates into clumps on the brain, which clumps secrete toxins causing neuronal damage in brain tissue that eventually results in cognitive deficits.

NIA selected solanezumab after considering a number of anti-amyloid treatments.

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. 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.

PDL BioPharma, Inc.

Q4 / Year End 2012

March 1, 2013

Royalty Revenue by Product ($ in 000's) *

Avastin	Q1		Q2		Q3		Q4		Total
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
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
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
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
2012		-		-		58		250		308
2011		-		-		-		-		-
2010		-		-		-		-		-
2009		-		-		-		-		-
2008		-		-		-		-		-
2007		-		-		-		-		-
2006		-		-		-		-		-

Tysabri	Q1		Q2		Q3		Q4		Total
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
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		-		-		-		-		-

* As reported to PDL by its licensees

Totals may not sum due to rounding

PDL BioPharma, Inc.

Q4 / Year End 2012

March 1, 2013

Reported Net Sales Revenue by Product ($ in 000's) *

Avastin	Q1		Q2		Q3		Q4		Total
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
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
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
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
2012		-		-		5,080		25,000		30,079
2011		-		-		-		-		-
2010		-		-		-		-		-
2009		-		-		-		-		-
2008		-		-		-		-		-
2007		-		-		-		-		-
2006		-		-		-		-		-

Tysabri	Q1		Q2		Q3		Q4		Total
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
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		-		-		-		-		-

* As reported to PDL by its licensees
Totals may not sum due to rounding

PDL BioPharma, Inc.

Q4 / Year End 2012

March 1, 2013

Manufacturing Location & Sales - Genentech / Roche & Novartis ($ in 000's) *

Avastin Sales	2011 - Q3			2011 - Q4			2012 - Q1			2012 - Q2			2012 - Q3			2012 - Q4
US Made & Sold		688,966			684,878			652,824			724,483			679,914			710,501
US Made & ex-US Sold		587,975			375,830			448,037			532,979			428,976			281,905
ex-US Made & Sold		304,155			409,286			401,896			316,265			442,437			670,572
Total		1,581,095			1,469,994			1,502,757			1,573,727			1,551,327			1,662,977
US Made & Sold		44	%		47	%		43	%		46	%		44	%		43	%
US Made & ex-US Sold		37	%		26	%		30	%		34	%		28	%		17	%
ex-US Made & Sold		19	%		28	%		27	%		20	%		29	%		40	%

Herceptin Sales	2011 - Q3			2011 - Q4			2012 - Q1			2012 - Q2			2012 - Q3			2012 - Q4
US Made & Sold		445,395			453,168			456,920			497,109			503,612			515,790
US Made & ex-US Sold		495,086			612,908			523,353			466,477			545,625			552,127
ex-US Made & Sold		702,416			366,695			534,982			661,727			614,459			582,578
Total		1,642,898			1,432,771			1,515,255			1,625,313			1,663,695			1,650,495
US Made & Sold		27	%		32	%		30	%		31	%		30	%		31	%
US Made & ex-US Sold		30	%		43	%		35	%		29	%		33	%		33	%
ex-US Made & Sold		43	%		26	%		35	%		41	%		37	%		35	%

Lucentis Sales	2011 - Q3			2011 - Q4			2012 - Q1			2012 - Q2			2012 - Q3			2012 - Q4
US Made & Sold		422,335			428,884			433,428			412,131			385,746			381,592
US Made & ex-US Sold		630,474			646,131			645,665			674,411			711,795			728,103
ex-US Made & Sold		-			-			-			-			-			-
Total		1,052,809			1,075,015			1,079,092			1,086,543			1,097,541			1,109,695
US Made & Sold		40	%		40	%		40	%		38	%		35	%		34	%
US Made & ex-US Sold		60	%		60	%		60	%		62	%		65	%		66	%
ex-US Made & Sold		0	%		0	%		0	%		0	%		0	%		0	%

Xolair Sales	2011 - Q3			2011 - Q4			2012 - Q1			2012 - Q2			2012 - Q3			2012 - Q4
US Made & Sold		184,837			188,728			185,505			193,600			211,702			210,892
US Made & ex-US Sold		-			-			-			-			-			-
ex-US Made & Sold		126,037			126,184			124,729			121,039			136,094			129,540
Total		310,874			314,911			310,234			314,638			347,796			340,431
US Made & Sold		59	%		60	%		60	%		62	%		61	%		62	%
US Made & ex-US Sold		0	%		0	%		0	%		0	%		0	%		0	%
ex-US Made & Sold		41	%		40	%		40	%		38	%		39	%		38	%

Perjeta Sales	2011 - Q3			2011 - Q4			2012 - Q1			2012 - Q2			2012 - Q3			2012 - Q4
US Made & Sold		-			-			-			-			5,080			24,571
US Made & ex-US Sold		-			-			-			-			-			428
ex-US Made & Sold		-			-			-			-			-			-
Total		-			-			-			-			5,080			25,000
US Made & Sold		0	%		0	%		0	%		0	%		100	%		98	%
US Made & ex-US Sold		0	%		0	%		0	%		0	%		0	%		2	%
ex-US Made & Sold		0	%		0	%		0	%		0	%		0	%		0	%

Total Sales	2011 - Q3			2011 - Q4			2012 - Q1			2012 - Q2			2012 - Q3			2012 - Q4
US Made & Sold		1,741,534			1,755,657			1,728,678			1,827,323			1,786,053			1,843,345
US Made & ex-US Sold		1,713,535			1,634,869			1,617,054			1,673,867			1,686,395			1,562,564
ex-US Made & Sold		1,132,608			902,165			1,061,607			1,099,031			1,192,990			1,382,690
Total		4,587,677			4,292,691			4,407,339			4,600,221			4,665,438			4,788,598
US Made & Sold		38	%		41	%		39	%		40	%		38	%		38	%
US Made & ex-US Sold		37	%		38	%		37	%		36	%		36	%		33	%
ex-US Made & Sold		25	%		21	%		24	%		24	%		26	%		29	%

* As reported to PDL by its licensees

Totals may not sum due to rounding

PDL Biopharma (PDLI) 8-KResults of Operations and Financial Condition