Third Point Activism - PDL BioPharma Summary

July 17th, 2008		\| More
In April of 2007 Third Point increased its holdings to 9.7% of the company's outstanding stock and demanded the company fire CEO Mark McDade. An internal investigation was launched against the CEO which eventually yielded no findings, however Mr. McDade stepped down from his position as CEO and as a member of the board. L. Patrick Gage was appointed 'interim CEO' in his place. Third Point then called for Mr. Gage's resignation citing his blotchy record as a member of the board and his support of many of Mr. McDade's failed projects. His position was dissolved in May of 2008. The `Office of the Chair' position, composed of all members of the board, was created to fill his role in the company. The company has implemented many of Third Point's suggestions; including the March of 2008 sale of its manufacturing, commercial and cardiovascular assets for a total of $525 million in cash, of which they committed to distribute $500 million to stock holders in the form of a special dividend. They have also substantially reduced their expenses and workforce. In addition PDL spun off its biotechnology assets into a separate publicly traded entity apart from its antibody humanization royalty assets. The company is still seeking to sell or securitize all or part of its antibody humanization royalties. In July of 2008 Brad Goodwin was appointed as chairperson of the board in place of the `Office of the Chair' position.