Refocus, restructure--cut revenue? In the wake of its CEO's exit announcement, PDL BioPharma is selling all three of its marketed drugs and laying off 250 workers. By paring off Cardene (hypertension), Retavase (heart attacks), and Busulfex (leukemia), the company can focus on what it does best: develop antibody drugs for cancer and immune disorders. PDL acquired the three marketed products in its $325 million buyout of ESP Pharma.
PDL lost $160 million last year, and its chairman says near-term earnings will fall further with the sale of these drugs--but he doesn't expect much impact on the stock, because major shareholders had been asking the company to overhaul its strategy. So far, PDL shares have dropped 16 percent on the news.
- see PDL's release on the changes