PDL BioPharma To Divest Noden Pharma Business To Stanley Capital For $48.25 Mln Cash

(RTTNews) - PDL BioPharma, Inc. (PDLI) announced Thursday the signing of a definitive agreement for the sale of 100% of the outstanding stock in its wholly owned subsidiaries Noden Pharma DAC and Noden USA to Stanley Capital for up to $48.25 million in cash.

After taking into account the expected adjustments for transaction expenses, indebtedness and working capital, payments to PDL are expected to be approximately $12.0 million in connection with the closing of the transaction. The agreement provides for an additional $33 million to be paid to PDL in twelve equal quarterly installments from January 2021 to October 2023. The agreement also provides PDL with the potential for two additional contingent payments totaling $3.25 million.

The transaction is expected to close in August 2020 and is subject to certain customary closing conditions.

The acquisition of Noden is the culmination of years of thematic research into the specialty pharmaceuticals sector, which identified the company as a strong buy and build platform.