- PDLI is liquidating, it should delist from the NASDAQ on December 31, 2020.
- Patient investors can ultimately expect a return of approximately 40% based on net assets.
- The Glumetza royalties may be undervalued today based on arguably a punitive discount rate, creating closer to 60% upside under a 5% discount rate for the portfolio.
- There is downside risk too, from payments being pushed out years into the future, a class action related to Glumetza pricing and other uncertainties.
- On balance, PDLI presents an opportunity for patient investors capable of owning illiquid investments.
For further details see:
PDL BioPharma Liquidation May Offer 40% Upside For Patient Investors Comfortable With Illiquidity