In late July 2016, PDL BioPharma, Inc. made the second installment payment ($50 million) to ARIAD Pharmaceuticals, Inc. as part of their synthetic-royalty deal.  The payment was due on the first anniversary of the original deal closing (July 2015).  The 2015 agreement included ARIAD receiving $100 million in cash, $50 million upon the deal execution and an additional $50 million in one year.

ARIAD sold the royalty stream on Iclusig® (ponatinib) to PDL.  With the second payment, PDL’s royalty percentage increased to [Content redacted, and available only to subscribers]

PDL BioPharma was formerly known as Protein Design Labs, Inc. and changed its name in 2006.  The company was founded in 1986 and pioneered the humanization of monoclonal antibodies – enabling the discovery of a new generation of targeted treatments for cancer and immunologic diseases for which it receives significant royalty revenue.   Now PDL seeks to acquire pharmaceutical products through equity investments including immediate financial monetization of royalty streams.  PDL still has licenses related to the famous Queen et al patents that cover humanized antibodies, methods for humanizing antibodies, polynucleotide encoding in humanized antibodies and methods of producing humanized antibodies.  The Queen patents did account for around 85% of PDL's total revenue.  These patents expired in 2014 and the revenue being generated from them is quickly diminishing as the last of the orders containing its patents were sold in the first half of 2016.  In February, PDL reduced its dividends and is projected to be only marginally profitable by 2017.

ARIAD Pharmaceuticals, Inc., headquartered in Massachusetts and Switzerland, is focused on cancer medicines.  Their pipeline includes medicines to treat various forms of leukemia and lung cancer.  The company utilizes computational and structural approaches to design small-molecule drugs.  The earliest available records indicate the small-molecule program was developed through a heavy dose of equity investment by Hoechst Marion Roussel (HMR).  (HMR was later acquired by Aventis Pharmaceuticals Inc.)

Featured image copyright: Giovanni Cancemi and Shutterstock ID: 263913671

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