PDL BioPharma Announces Elimination of Quarterly Cash Dividend
INCLINE VILLAGE, Nev., Aug. 4, 2016 /PRNewswire/ -- PDL BioPharma, Inc. (NASDAQ: PDLI) (PDL or the Company) today announced that its board of directors has decided to eliminate its quarterly cash dividend.
John P. McLaughlin, president and chief executive officer of PDL, stated, "Since 2009, our dividends have been an important element of our commitment to return value to our shareholders, and the decision to eliminate the dividend was not taken lightly. However, by terminating cash payments to our shareholders, we will be able to make significant strategic investments and financing decisions that we expect will drive long-term growth and greater value for our shareholders."
The decision to eliminate the dividend is based upon a number of factors, all relating to the strong prospects for the long-term growth of PDL, including:
A change in strategic focus to include equity investments and specialty pharmaceutical product acquisitions which have the potential to generate revenues quickly.
More sizable royalty deals that could provide significantly greater long-term benefits to the company and its shareholders.
The expiration of the Queen et al. patents and reduced revenue associated with these assets.
Financing considerations, which include potentially more favorable financing terms related to debt financing should PDL pursue additional financing options.
