Businessweek

PDL BioPharma, Inc. engages in the management of antibody humanization patents and royalty assets. The company’s antibody humanization patents and royalty assets consist of its Queen et al. patents and license agreements with biotechnology and pharmaceutical companies pursuant to which it has licensed certain rights under Queen et al. patents. Licensing Agreements The company has entered into licensing agreements with various companies that are independently developing or have developed humanized antibodies pursuant to which it has licensed certain rights under Queen et al. patents to make, use, sell, offer for sale, and import humanized antibodies. These agreements cover antibodies targeting antigens specified in the license agreements. The company’s Queen et al. patents cover humanized antibodies, methods for humanizing antibodies, polynucleotide encoding in humanized antibodies, and methods of producing humanized antibodies. Licensing Agreements for Marketed Products The company’s licensees with commercial products include Genentech, Inc. (Genentech); Elan Corporation, Plc (Elan); Wyeth Pharmaceuticals, Inc. (Wyeth); and Chugai Pharmaceutical Co., Ltd. (Chugai). Genentech: The company entered into a master patent license agreement, pursuant to which it granted Genentech a license under its Queen et al. patents to make, use, and sell certain antibody products. Elan: The company entered into a patent license agreement, pursuant to which it granted to Elan a license under its Queen et al. patents to make, use, and sell antibodies that bind to the cellular adhesion molecule a4 in patients with multiple sclerosis. Wyeth: The company entered into a patent license agreement, pursuant to which it granted to Wyeth a license under its Queen et al. patents to make, use, and sell antibodies that bind to CD33, an antigen that is found patients with acute myeloid leukemia, and conjugated to a cytotoxic agent. Chugai: The company entered into a patent license agreement with Chugai, a majority owned subsidiary of F. Hoffman Roche Ltd, pursuant to which the company granted to Chugai a license under its Queen et al. patents to make, use, and sell antibodies that bind to interleukin-6 receptors to prevent inflammatory cascades involving multiple cell types for the treatment of rheumatoid arthritis. Licensing Agreements for Non-Marketed Products The company has also entered into licensing agreements pursuant to which it has licensed certain rights under Queen et al. patents to make and sell certain products in development that have not yet reached commercialization. Certain of these products in development are in Phase 3 clinical trials. Eli Lilly and Company (Lilly) and Wyeth have licensed antibodies for the treatment of Alzheimer’s disease that are in Phase 3 clinical trials. Trastuzumab-DM1 (T-DM1), which is an experimental, antibody-drug conjugate that links Herceptin to a cytotoxic, or cell killing agent, DM1, is being developed by Genentech. The T-DM1 clinical program is concentrated on treatment of Herceptin-experienced metastatic breast cancer patients. Customers The company’s major customers include MedImmune LLCand Elan. History The company was founded in 1986. It was formerly known as Protein Design Labs, Inc. and changed its name to PDL BioPharma, Inc. in 2006.