PDL to spin off biotech business

REDWOOD CITY, Calif. PDL BioPharma will spin off its biotech business, according to published reports.

PDL expects to capitalize the new company with about $375 million of cash at the completion of the transaction and said the initial capitalization, along with potential milestone payments, non-humanization royalties and payments under collaboration and other agreements, would fund the biotechnology spin-off for about three years based on the company’s current operating plans.

Details about the structure, leadership and financial operations of the two separate companies that would result from the spin-off transaction will be disclosed at a later time, PDL BioPharma said.

The company said it expects that the separation of its assets will be completed by the end of 2008.