INCLINE VILLAGE, Nev.,
Aug. 12, 2020 /PRNewswire/ -- PDL
BioPharma, Inc. ("PDL" or the "Company") (Nasdaq: PDLI) announces
it has entered into a settlement agreement (the "Settlement
Agreement") with related entities of Defined Diagnostics, LLC
(f/k/a Wellstat Diagnostics, LLC) ("Wellstat Diagnostics" and,
together with such related entities, the "Wellstat Parties")
resolving previously reported litigation relating to loans made to
Wellstat Diagnostics by PDL. The loans totaling $44,100,000 were made pursuant to a loan
agreement between Wellstat Diagnostics and PDL dated August 2013, and the notes were carried on PDL's
balance sheet for $51,391,184 as of
June 30, 2020.
Under the terms of the Settlement Agreement, the parties agreed
that the Wellstat Parties would pay an amount of $7,500,000 upon the signing of the Agreement and
either (1) $5,000,000 by February 10, 2021 and $55,000,000 by July 26,
2021; or (2) $67,500,000 by
July 26, 2021. Further under the
terms of the Agreement, upon payment of either $5,000,000 prior to April
21, 2021 or completion of the payment of $67,500,000 by July 26,
2021, the Company will transfer to Wellstat Diagnostics on
an "as is" and "where is" basis certain assets currently owned by
the Company which were obtained through the Company's credit bid in
2017 for the assets of Wellstat Diagnostics. If the Wellstat
Parties fail to make payment in full by July
26, 2021, the Company shall be authorized to record and
confess judgment against the Wellstat Parties for an amount of
$92,500,000 or such lesser amount as
may be owed under the Agreement.
"We are pleased that we have finally
reached this settlement with the Wellstat parties. We look forward
to receiving the agreed payments, which should increase the net
proceeds from our monetization strategy that we can ultimately
distribute to our stockholders," commented PDL's President
and CEO Dominique Monnet. "I
commend our legal team, led by our General Counsel Christopher Stone, for their dedication and
persistence."
In September 2019, PDL announced
that the Supreme Court of New York County of New York, Commercial Division, issued a
summary judgment in favor of PDL in the Company's litigation with
Wellstat Diagnostics recognizing the validity and enforceability of
guarantees on the loans made by the guarantors under the loan
facility.
About PDL BioPharma, Inc.
Throughout its history, PDL's mission has been to improve the
lives of patients by aiding in the successful development of
innovative therapeutics and healthcare technologies. PDL
BioPharma was founded in 1986 as Protein Design Labs, Inc. when it
pioneered the humanization of monoclonal antibodies, enabling the
discovery of a new generation of targeted treatments that have had
a profound impact on patients living with different cancers as well
as a variety of other debilitating diseases. In 2006, the
Company changed its name to PDL BioPharma, Inc.
As of December 2019, PDL ceased
making additional strategic transactions and investments and is
pursuing a formal process to unlock the value of its portfolio by
monetizing its assets and ultimately distributing net proceeds to
stockholders in the form of cash or equity.
For more information please visit https://www.pdl.com/.
NOTE: PDL, PDL BioPharma, the PDL logo and associated logos
and the PDL BioPharma logo are trademarks or registered trademarks
of, and are proprietary to, PDL BioPharma, Inc., which reserves all
rights therein.
About this Settlement Agreement
The Company entered into this Settlement Agreement with
Samuel J. Wohlstadter, Nadine H. Wohlstadter, Hyperion Catalysis
International, Wellstat Vaccines, LLC, Wellstat ImmunoTherapeutics,
LLC, Wellstat BioCatalysis, LLC, Wellstat AVT Investment, LLC,
Wellstat Biologics Corporation, Wellstat Management Company, LLC,
Wellstat Ophthalmics Corporation, Wellstat Therapeutics
Corporation, Wellstat Therapeutics EU Limited, Duck Farm, Inc.,
Hebron Valley Farms, Inc., HVF, Inc., Hyperion Catalysis EU
Limited, NHW, LLC, and SJW Properties, Inc., together with their
respective successors and assigns, and Wellstat Diagnostics.
Forward-looking Statements
This press release contains "forward-looking statements" within
the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended, including as it relates to the Company's litigation with
Wellstat. Each of these forward-looking statements involves
risks and uncertainties. Actual results may differ materially from
those, express or implied, in these forward-looking
statements. Important factors that could impair the value of
the Company's assets and business, including the implementation or
success of the Company's monetization strategy/plan of complete
liquidation, are disclosed in the risk factors contained in the
Company's Annual Report on Form 10-K filed with the SEC on
March 11, 2020 and Quarterly Reports
on Form 10-Q filed with the SEC on May 11,
2020 and August 10,
2020. All forward-looking statements are expressly qualified
in their entirety by such factors. We do not undertake any
duty to update any forward-looking statement except as required by
law.
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SOURCE PDL BioPharma, Inc.