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PDL BioPharma (PDLI) owns a dominant intellectual property position in the humanization of monoclonal antibodies, and is monetizing this technology through royalty bearing licenses for some of the best-selling antibody drugs, such as Herceptin, Avastin, Actemra , Lucentis, Xolair, Perjeta, Kadcyla (all from Roche), and Tysabri (Biogen Idec). However, its major income-generating asset, Queen et al patents, is about to expire in December 2014. To overcome this situation, PDL BioPharma has taken $40 million debt, providing the company with 15.5% interest rate through October 2018. This deal provides an improved return on capital and will provide financial strength to support operations; still, it doesn't provide a long-term source of revenue to support operations beyond 2015. The expiration...

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