PDL BioPharma Inc (NASDAQ:PDLI) announced financial report for the third quarter closed September 30, 2016. Revenues came at $53.6 million for the quarter closed September 30, 2016. Total revenues declined by 57% for the quarter closed September 30, 2016 against the comparable period in 2015. The decline in royalties from company’s licensees to the Queen et al. copyrights is due to the termination of the patent license deal with Genentech, Inc.

The highlights

PDL continues to record royalties on Tysabri sales. The duration of royalty payment is dependent on the sales of product made prior to patent expiry, the funds of which is uncertain. There was jump in royalty rights, and the change in fair value was led by the $9.6 million jump in the fair value of the Depomed royalty rights properties mainly due to a $5 million milestone compensation based on FDA sanction of Invokamet® XR, a Type II diabetes medication in Depomed portfolio, a modification to the timing of its projected cashflows and a decline in discount rate.

The company obtained net cash royalty and related payments of $15.3 million in the third quarter of 2016 against $6.9 million for the same quarter of 2015. The decline in interest revenues was mainly due to ceasing to record interest from notes receivable of Direct Flow Medical, Inc. Product revenues were recorded from sales of Tekturna HCT and Tekturna in the U.S. and Rasilez HCT and Rasilez in the rest of the world.

Pursuant to the purchase deal, when Noden Pharma DAC bought the limited worldwide rights to market, manufacture, and offer the Noden goods from Novartis AG (ADR)(NYSE:NVS). The company continued offering the Noden Products in 3Q2016 and moved profits with Noden on a net basis comprising of a fee to Novartis and net cost of manufacturing. Noden is commercializing the goods in the U.S. as of 4Q2016. Total revenues dropped by 57% for the nine months closed September 30, 2016 against the same period in 2015.