PDL BioPharma (PDL) has provided AxoGen (OTC:AXGN) with a total of $20.8 million since August in exchange for royalties on some of AxoGen‘s revenues, reported PR Newswire this week. The deal closed on Tuesday, and John P. McLaughlin, the President and CEO of PDLI, joined the board of directors at AxoGen immediately after the closing.
“We are looking at how we can get attractive revenue-generating assets with an appropriate risk profile for our shareholders,” McLaughlin said recently in an interview with The Wall Street Transcript. “It could be through licensing deals; it could be through loans; it could be buying royalty streams from companies or universities or possibly through buying companies that have royalty streams that are attractive and are unencumbered by other R&D operations. We’re not really interested in getting into substantial R&D operations. Our shareholders like the fact that we focus on commercial-stage assets, and I think that’s how we prefer to stay.”
The transaction closing between PDLI and AxoGen comes at a time when PDLI is in search for revenue-generating assets. In the interview, McLaughlin said despite some of PDLI’s Queen et al. patents expiring by 2014, the company is interested in finding more revenue-generating assets and continue paying a dividend, which currently is at around 8%.
When asked about PDLI as a investment, McLaughlin cites three reasons why investors may want to buy into the company: One, the assets are predominantly commercial stage; two, regular dividend payments; and three, a trading volume of about 1.9 million shares a day.
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