As part of our equity investments, PDL has majority interest in Noden Pharma (which is comprised of a series of companies) and was acquired in July 2016, and LENSAR, which became a wholly owned subsidiary of PDL in May 2017 after PDL converted a significant amount of its previously owed LENSAR debt into LENSAR equity.
Noden Pharma is a global specialty pharmaceutical company that is focused on acquiring prescription medicines across a broad range of therapeutic areas. Its first acquisition was for the prescription drug aliskiren, sold under the brand names Tekturna® (aliskiren) and Tekturna HCT® (aliskiren and hydrochlorothiazide) in the United States, and Rasilez® and Rasilez HCT® in the rest of the world. The worldwide rights to manufacture, market, and sell the products were acquired from Novartis in July 2016.
LENSAR is a medical device company. Its product is a femtosecond laser for refractive cataract surgery which uses augmented reality to provide superior imaging of the patient’s eye allowing efficient, precise and better placed corneal incisions. The LENSAR Laser System is approved in most major countries.
Why These Investments Can Be Attractive
PDL is pursuing investments in companies with specialty pharmaceutical products because they can offer attractive returns in both the short term and the intermediate term. These products are typically approved offering short term returns when acquired on attractive terms and have been under commercialized offering intermediate returns when appropriately and effectively promoted. We believe that these attractive returns can build value for our stockholders.
While we have previously made three different types of investments to build value for our stockholders – royalty monetizations, debt structures and hybrids of the two proceeding, it is our intent to prioritize equity investments in specialty pharmaceuticals over royalty monetizations and to significantly reduce debt investments.