PDL BioPharma, Inc. produces and markets biopharmaceutical products. It operates through the following segments: Income Generating Assets, Pharmaceutical, and Medical Devices. The Income Generating Assets segment consists of revenues derived from notes and other long-term receivables, royalty rights-at fair value, equity investments, and royalties from issued patents in the United States and elsewhere. The Pharmaceutical segment covers revenues from branded prescription medicine products being sold under the name Tekturna and Tekturna HCT in the United States, and Rasilez and Rasilez HCT for the rest of the world. The Medical Devices segment handles revenues from the LENSAR Laser System sales. The company was founded by Cary L. Queen and Laurence Jay Korn in 1986 and is headquartered in Incline Village, NV.
Our strategic investment in Evofem Biosciences, Inc. (“Evofem”) is subject to risks, and any other strategic investments that we may make from time to time may be subject to risks.
We may not achieve the expected benefits from our strategic investment in Evofem.
Our strategic investment in Evofem will depend heavily on whether Evofem can successfully develop, gain approval for and commercialize its lead product candidate, Amphora, for prevention of pregnancy. Failure of Evofem to successfully develop, gain approval or commercialize Amphora for prevention of pregnancy would likely cause its business to fail, which would diminish the value of our investment in Evofem.
Our Strategic Positions business is subject to liquidity risks.
ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
We seek to provide a significant return for our stockholders by acquiring commercial stage pharmaceutical assets with multiple year revenue growth potential as well as late clinical stage pharmaceutical products. Our leadership team has extensive experience in acquiring, commercializing and managing the life cycle of therapeutic products domestically and internationally across a number of indications and modalities. We intend to leverage this experience by pursuing the acquisition, growth and potential monetization of pharmaceutical products and companies.
Historically, we generated a substantial portion of our revenues through the license agreements related to patents covering the humanization of antibodies, which we refer to as the Queen et al. patents. In 2012, we began providing alternative sources of capital through royalty monetizations and debt facilities, and, in 2016, we began acquiring commercial-stage products and launching specialized companies dedicated to the commercialization of these products. To date, we have consummated seventeen such transactions, the following ten of which are active and outstanding: