Value Beacon
Long/short equity

A Short Case For PDL Biopharma: Why The Company Is Worth Less Than $5 A Share

A short case for PDL Biopharma: Simple math to understand why PDLI is worth less than $5 a share

In this note I will attempt to explain why I believe PDL Biopharma (NYSE: PDLI) may have substantial downside risk, why investors may be choosing to ignore this risk, why it only takes simple math to understand the firm's current value, and the catalysts for rapid price discovery in the shares. In short, if I am correct, PDLI may be vulnerable to a 40% sell-off to $5 a share or less from its current price of $8.25.

A (Very) Brief History

PDL Biopharma is a pharmaceutical royalty company. The shares have been well covered in these pages over the past...

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