PDL BioPharma says Valeant delayed royalties on diabetes pill
Nov 5 (Reuters) - Shares of PDL BioPharma Inc fell to their record low, a day after the company said Valeant Pharmaceuticals International Inc delayed royalty payments for diabetes pill, Glumetza, hurting its quarterly results.
PDL has royalty rights to Depomed's Glumetza, which is licensed to a unit of Salix, now a part of Valeant. (bit.ly/1WCTD02)
Valeant did not make royalty payments in the third quarter, but made a cash payment of $18.9 million in late October, PDL Chief Financial Officer Pete Garcia said on a conference call with analysts on Wednesday
"Valeant pays Depomed royalties on Glumetza, and all amounts payable for third quarter were reported and remitted to Depomed by October 30," the Canadian drugmaker said in a statement.
Depomed said these payments are to be made on a monthly basis and within 30 days of the close of the month.
"This did not happen in July. What should have been received in late August and late September respectively, was made in late October," Depomed's spokesman said in a statement.
Glumetza is a patented form of extended release metformin.
Valeant shares fell as much as 20 percent on Thursday to a level not seen since 2013, adding more pressure on Chief Executive Michael Pearson after weeks of steep losses due to concerns about the drugmaker's business practices.
PDL shares were down 12 percent at $3.91. (Reporting by Ankur Banerjee and Amrutha Penumudi in Bengaluru; Editing by Anil D'Silva)
© Thomson Reuters 2016 All rights reserved.