PDL BioPharma, Inc. (PDL) (NASDAQ: PDLI) today announced that the company has received $30.3 million, in addition to previously received revenue interest payments, to conclude PDL's revenue interest agreement with AxoGen, Inc. (NASDAQ: AXGN). In October 2012, PDL entered into a structured financing transaction in which PDL provided AxoGen with an aggregate of $20.8 million in exchange for royalties on certain AxoGen revenues. AxoGen is a regenerative medicine company dedicated to advancing the science and commercialization of surgical solutions for peripheral nerve repair.
"We are pleased that we were able to offer AxoGen financial support. AxoGen is a good example of the excellent quality of assets PDL has been able to attract. We have increased our equity position in AxoGen, and we wish them great success," stated John P. McLaughlin, president and chief executive officer of PDL. "This marks the second concluded investment in our short history of acquiring revenue generating assets and we are pleased with the outcome. Our strict underwriting process is harvesting success."
"We would like to extend our sincere gratitude to PDL for their strong partnership and continued support during the course of our financial relationship. PDL's financing provided key growth capital allowing AxoGen to generate high double digit sales growth. As a result, AxoGen has become a leading company in the peripheral nerve repair market," commented Karen Zaderej, president and chief executive officer of AxoGen.
On November 13, 2014, PDL acquired 643,382 registered shares of AxoGen common stock in exchange for approximately $1.75 million under a privately negotiated stock purchase agreement. PDL currently holds approximately 1.8 million shares of AxoGen common stock.
SOURCE PDL BioPharma, Inc.