ex99_1.htm

Forward Looking Statements

This presentation contains forward-looking statements, including PDL’s expectations with respect to its future royalty
revenues, expenses, net income, and cash provided by operating activities.

Each of these forward-looking statements involves risks and uncertainties. Actual results may differ materially from those,
express or implied, in these forward-looking statements. Factors that may cause differences between current expectations
and actual results include, but are not limited to, the following:

▪ The expected rate of growth in royalty-bearing product sales by PDL’s existing licensees;

• The relative mix of royalty-bearing Genentech products manufactured and sold outside the U.S. versus manufactured or
sold in the U.S.;

• The ability of PDL’s licensees to receive regulatory approvals to market and launch new royalty-bearing products and
whether such products, if launched, will be commercially successful;

• Changes in any of the other assumptions on which PDL’s projected royalty revenues are based;

• Changes in foreign currency rates;

• Positive or negative results in PDL’s attempt to acquire royalty-related assets;

• The outcome of pending litigation or disputes, including PDL’s current dispute with Genentech related to ex-U.S. sales of
Genentech licensed products; and

• The failure of licensees to comply with existing license agreements, including any failure to pay royalties due.

Other factors that may cause PDL’s actual results to differ materially from those expressed or implied in the forward-
looking statements in this presentation are discussed in PDL’s filings with the SEC, including the "Risk Factors" sections of
its annual and quarterly reports filed with the SEC. Copies of PDL’s filings with the SEC may be obtained at the "Investors"
section of PDL’s website at www.pdl.com. PDL expressly disclaims any obligation or undertaking to release publicly any
updates or revisions to any forward-looking statements contained herein to reflect any change in PDL’s expectations with
regard thereto or any change in events, conditions or circumstances on which any such statements are based for any
reason, except as required by law, even as new information becomes available or other events occur in the future. All
forward-looking statements in this presentation are qualified in their entirety by this cautionary statement.

Company Overview

• PDL pioneered the humanization of monoclonal antibodies
which enabled the discovery of a new generation of targeted
treatments for cancer and immunologic diseases

• PDL’s primary assets are its antibody humanization patents
and royalty assets which consist of its Queen et al. patents
and license agreements

• Licensees consist of large biotechnology and
pharmaceutical companies including Roche/Genentech/
Novartis, Elan/BiogenIdec, Pfizer/Wyeth/J&J and Chugai

Antibody Humanization Technology

• Antibodies are naturally produced by humans to fight
foreign substances, such as bacteria and viruses

• In the 1980’s, scientists began creating antibodies in non
-human immune systems, such as those of mice, that
could target specific sites on cells to fight various human
diseases

• However, mouse derived antibodies are recognized by
the human body as foreign substances and may be
rejected by the human immune system

• PDL’s technology allows for the “humanization” of mouse derived antibodies by moving the
important binding regions from the mouse antibody onto a human framework

• PDL’s humanization technology is important because the humanized antibodies retain the
binding and activity levels from the original mouse antibody

• PDL’s technology has been incorporated into antibodies to treat cancer, eye diseases,
arthritis, multiple sclerosis and other health conditions with aggregate annual sales of over
$17 billion

How Long Will PDL Receive Royalties from
Queen et al. Patents?

• PDL’s revenues consist of royalties generated on sales of licensed products

▪ Sold before the expiration of the Queen et al. patents in mid-2013 through end of 2014

▪ Made prior to the expiration of the Queen et al. patents and sold anytime thereafter

Example of Antibody Formulation, Fill and Finish Schedule

½ month

1 month

½ month

2-3 months

Thaw, Formulation &
Vial Filling

Quality
Release

Packaging
& Quality

Inventory

Example of Antibody Bulk Manufacturing Schedule

Cell

Culture

Quality Release
Testing

Bulk Frozen Storage

1 mo

3 mos

5 mos

10 mos

15 mos

20 mos

27 mos

3 mos

2-18 months

1mo

Purification to Concentrated Bulk/Frozen

Genentech Product Made or Sold in U.S.
Net Sales up to $1.5 Billion	3.0%
Net Sales Between $1.5 Billion and $2.5 Billion	2.5%
Net Sales Between $2.5 Billion and $4.0 Billion	2.0%
Net Sales Over $4.0 Billion	1.0%
Genentech Product Made and Sold Ex-U.S.
All Sales	3.0%

Queen et al Patents - Royalty Rates

• Tysabri and Actemra

• Flat, low single-digit royalty

• Genentech Products (Avastin, Herceptin, Lucentis1 and Xolair)

• Tiered royalties on product made or sold in US

• Flat, 3% royalty on product made and sold outside US

• Blended global royalty rate on Genentech Products in 2010 was 1.9%

• Blended royalty rate on Genentech Products in 2010 made or sold in US was
1.5%

1. As part of a settlement with Novartis, which commercializes Lucentis outside US, PDL agreed to pay to Novartis
certain amounts based on net sales of Lucentis made by Novartis during calendar year 2011 and beyond. The
amounts to be paid are less than we receive in royalties on such sales and we do not currently expect such amount to
materially impact our total annual revenues.

Shift of Manufacturing Sites = Higher Royalties

• Roche is moving some manufacturing ex-US which may result in higher royalties to PDL
due to the flat 3% royalty for Genentech Products made and sold ex-US

▪ Current production at Penzburg (Herceptin) and Basel (Avastin) plants

▪ Two new plants in Singapore (CHO = antibody and e. coli = antibody fragment)

- E. coli (Lucentis) and CHO (Avastin) plants are approved for commercial supply to the US

- E. coli and CHO plants are expected to be approved for commercial supply to the EU in 2011

- Currently, all Lucentis is made in the US

1. As reported to PDL by its licensee

Royalty Products - Avastin

Avastin

Herceptin

Lucentis

Xolair

Tysabri

RoActemra

ü On June 29, 2011, an advisory committee to FDA voted
unanimously that the approval of Avastin for the treatment of
HER2- breast cancer should be revoked

ü Final decision rests with the FDA Commissioner, FDA
determined on December 16, 2010 to withdraw Avastin’s
approval as first line treatment for HER2- breast cancer in
combination with paclitaxel.

ü Genentech has submitted a new proposal to maintain the
approval with more restrictive labeling, REMS and a
commitment to conduct a new 480 patient confirmatory trial.

ü EMEA narrowed, but did not withdraw Avastin’s approval for
first line treatment of HER2- breast cancer in combination with
paclitaxel or with Xeloda.

ü Roche lowered its estimate of peak annual sales from of
Avastin from CHF8 - CHF9 billion to CHF7 billion.

ü Based on our internal model, we project Avastin for treatment
of metastatic HER2- breast cancer represents slightly more
than 2% of total PDL royalty revenue.

Royalty Products - Avastin

Avastin

Herceptin

Lucentis

Xolair

Tysabri

Actemra

ü On June 4, 2011, Genentech announced results from Phase 3
study evaluating Avastin in combination with chemotherapy
(gemcitabine and carboplatin) followed by the continued use of
Avastin alone in women with previously treated (recurrent)
platinum-sensitive ovarian cancer which showed that women
who received Avastin experienced a 52% reduction in the risk
of their disease progressing (HR=0.48, p<0.0001) compared to
women who received chemotherapy alone.

ü Two previous Phase 3 studies in women with newly diagnosed
ovarian cancer demonstrated that front-line Avastin in
combination with standard chemotherapy (carboplatin and
paclitaxel), followed by the continued use of Avastin alone,
significantly increased progression free survival compared to
treatment with chemotherapy alone.

ü Roche has submitted an application for approval for first line
treatment in EU and expects a decision later in 2011.

ü Genentech expects to file an application for approval in US in
late 2011 so that it can meet FDA’s request for overall survival
data.

Royalty Products - Lucentis

Avastin

Herceptin

Lucentis

Xolair

Tysabri

Actemra

ü On January 7, 2011, Novartis announced that Lucentis has
been approved in the EU for the treatment of visual impairment
due to diabetic macular edema (DME).

§ DME is a leading cause of blindness in the working-age
population in most developed countries.

ü On February 11, 2011, Genentech announced that one of two
Phase 3 studies evaluating patients with DME showed that a
significantly higher percentage of patients receiving monthly
dosing of Lucentis achieved an improvement in vision of at
least 15 letters on the eye chart at 24 months compared to
those in a control group, who received a placebo injection.

ü On June 6, 2011, Novartis announced that Lucentis has been
approved in the EU for the treatment of visual impairment due
to macular edema secondary to retinal vein occlusion.

Royalty Products - Lucentis

Avastin

Herceptin

Lucentis

Xolair

Tysabri

Actemra

ü On November 22, 2010, Regeneron and Bayer reported top line
data from two Phase 3 trials investigating VEGF Trap in age-related
macular degeneration (AMD) patients which suggest that it may be
injected into the eye every other month with safety and efficacy
comparable to that of monthly dosing of Lucentis.

ü On December 20, 2010, Regeneron reported positive Phase 3 data
in the treatment of retinal vein occlusion (RVO) for which Lucentis is
approved.

§ Unlike the AMD trial, monthly administration was used in the
RVO trial, which does not afford a dosing advantage with
respect to Lucentis.

ü On February 22, 2011, Regeneron and Bayer filed an application for
approval of VEGF Trap for AMD with an initial PDUFA date of
August 20, 2011 which was subsequently extended to November
18, 2011. An FDA Advisory Committee recommended approval of
VEGF Trap on June 17, 2011.

ü On June 7, 2011, Regeneron and Bayer filed an application for AMD
in EU.

ü Regeneron filed suit in February 2011 seeking a summary judgment
that it does not infringe Genentech’s patents.

ü Genentech filed a countersuit in April 2011 asserting that
Regeneron is willfully infringing Genentech’s patents, seeking treble
damages and asking for injunctive relief.

Royalty Products - Lucentis

Avastin

Herceptin

Lucentis

Xolair

Tysabri

Actemra

ü On April 4, 2011, Genentech and Johns Hopkins University
reported results of a review of files of 77,886 patients with AMD
who received either Avastin off-label or Lucentis.

ü Patients receiving Avastin off-label had an 11% increased risk
of overall mortality, 57% increased risk of hemorrhagic
cerebrovascular accident, 80% more likely to have ocular
inflammation and 11% more likely to have cataract surgery
following treatment than Lucentis treated patients.

ü Authors of the study note that it is limited due to incomplete
information on confounding factors such as smoking, lipid and
blood pressure levels, etc.

Royalty Products - Lucentis

Avastin

Herceptin

Lucentis

Xolair

Tysabri

Actemra

ü On April 28, 2011, New England Journal of Medicine reported
the results from the NEI’s CATT study comparing Lucentis and
Avastin on fixed and variable schedules in the treatment of
AMD.

ü Efficacy results from the first year of the two year study showed
that, with respect to the primary endpoint of mean change in
visual acuity (number of lines of letters on an eye chart) at 12
months, less expensive Avastin was not inferior to Lucentis.

§ It is estimated that off label use of Avastin in the U.S. was
60% prior to the results of the CATT trial.

ü At 12 months, serious adverse events (primarily
hospitalizations) occurred at a 24% rate for patients receiving
Avastin and a 19% rate for patients receiving Lucentis.
However, preliminary 24 month safety data showed no
difference between Lucentis and Avastin treated patients in
terms of death, stroke and all arteriothrombotic events.

ü On August 30, 2011, FDA issued a health warning alert after at
least 16 AMD patients suffered eye infections after being
treated with repackaged Avastin.

Royalty Products - Lucentis

Avastin

Herceptin

Lucentis

Xolair

Tysabri

Actemra

ü On June 28, 2011, Genentech reported positive results from
two pivotal Phase 3 clinical studies in patients with diabetic
macular edema.

ü Both studies showed that patients treated with Lucentis
experienced significant, rapid and sustained improvement in
vision compared to those who received sham injections.

ü Additional analyses showed that patients who received
Lucentis were significantly more likely to achieve 20/40 vision
and experience less progression of underlying diabetic
retinopathy disease.

Royalty Products - Tysabri

Avastin

Herceptin

Lucentis

Xolair

Tysabri

Actemra

ü FDA and EMEA have included JC virus (JCV) status as a risk
factor for PML in the product label for Tysabri.

§ The EMEA also recommended a five-year renewal of the
Tysabri’s Marketing Authorization in the EU.

§ EMEA Physician Info Document states that risk of PML in:

o JCV- patients is <0.2 per 1000

o JCV+ patients with no prior immunosuppressants is 0.4
per 1000 in first two years

o JCV+ patients with no prior immunosuppressants is 2.6
per 1000 in years 2-4

o JCV+ patients AND prior immunosuppressants AND 2 or
more years is 9 per 1000

o JCV+ = roughly 55% of MS population

ü Net patient adds increased to 2400 in 2Q11, up from 1900 in
1Q11.

Royalty Products - Actemra

Avastin

Herceptin

Lucentis

Xolair

Tysabri

Actemra

ü On January 5, 2011, Roche announced that FDA expanded the
Actemra label to include inhibition and slowing of structural joint
damage, improvement of physical function, and achievement of
major clinical response in adult patients with moderately to
severely active rheumatoid arthritis.

ü On April 18, 2011, FDA approved Actemra to treat patients age
2 and older with active systemic juvenile idiopathic arthritis
(SJIA).

§ It is the first and only approved treatment for SJIA, a rare
and severe form of arthritis affecting children.

ü On July 19, 2011, Chugai/Roche announced that a
subcutaneous formulation of Actemra has shown efficacy in
rheumatoid arthritis comparable to the approved intravenous
formulation. Based on these non-inferiority data, the company
plans to file for approval in Japan in 2012.

Potential Royalty Products - T-DM1

T-DM1

Breast HER2+ Cancer

ü On October 13, 2010, Roche/Genentech announced
preliminary, six month results from a Phase 3 trial in second
line HER2+ breast cancer patients which showed that 48% of
women treated with T-DM1 had their tumors shrink compared
with 41% of those taking the combination of Herceptin and
Taxotere.

§ Among the women taking the standard therapy, 75% had
side effects of grade 3 or higher on a 5-point scale,
compared with 37% of those getting T-DM1.

ü Roche/Genentech expect to file for second line approval in
2012.

Ocrelizumab

Multiple Sclerosis

Pertuzumab

Breast HER2+ Cancer

Afutuzumab

Chronic Lymphocytic
Leukemia

Solanezumab

Alzheimer’s Disease

Daclizumab

Multiple Sclerosis

Datoluzumab

Colorectal Cancer

Bapineuzumab

Alzheimer’s Disease

Farletuzumab

Ovarian Cancer

Potential Royalty Products - Pertuzumab

T-DM1

Breast HER2+ Cancer

ü On December 10, 2010, Roche/Genentech reported the results
from a Phase 2 trial investigating the neoadjuvant (prior to
surgery) use of pertuzumab and Herceptin plus chemotherapy
for the treatment of early-stage, HER2+ breast cancer.

ü Treatment significantly improved the rate of complete tumor
disappearance in the breast by more than half compared to
Herceptin plus docetaxel, p=0.014.

ü On July 15, 2011, Roche/Genentech reported the results from
a Phase 3 trial in pertuzumab plus Herceptin and docetaxel
met the primary endpoint of progression-free survival (PFS) vs.
Herceptin plus docetaxel alone

ü Roche/Genentech expect to file for approval at the end of
2011.

ü Unlicensed product.

Ocrelizumab

Multiple Sclerosis

Pertuzumab

Breast HER2+ Cancer

Afutuzumab

Chronic Lymphocytic
Leukemia

Solanezumab

Alzheimer’s Disease

Daclizumab

Multiple Sclerosis

Datoluzumab

Colorectal Cancer

Bapineuzumab

Alzheimer’s Disease

Farletuzumab

Ovarian Cancer

Potential Royalty Products - Bapineuzumab

T-DM1

Breast HER2+ Cancer

ü Phase 3.

ü On July 19, 2011, researchers from Pfizer and Johnson &
Johnson reported long-term safety of 194 patients in a mid-
stage trial of the drug that stayed on treatment after the initial
phase ended.

§ The brain swelling condition called vasogenic edema,
which caused safety concerns early on in the trial, may
decrease over time.

ü Data expected in second half of 2012.

Ocrelizumab

Multiple Sclerosis

Pertuzumab

Breast HER2+ Cancer

Afutuzumab

Chronic Lymphocytic
Leukemia

Solanezumab

Alzheimer’s Disease

Daclizumab

Multiple Sclerosis

Datoluzumab

Colorectal Cancer

Bapineuzumab

Alzheimer’s Disease

Farletuzumab

Ovarian Cancer

Genentech / Roche - Product Pipeline

2011

2012

2013

2014

Avastin

Ovarian Cancer 1st Line US

Lucentis

Diabetic Macular Edema (US)

Pertuzumab1

mBC HER2+ 1st Line

Avastin + Herceptin

mBC HER+ 2nd Line

Avastin

Relapsed Ovarian Cancer

T-DM1

HER 2+ Advanced mBC

Actemra

RA DMARD H2H (EU)

Actemra

Ankylosing Spondylitis

Herceptin

Subcutaneous Formulation

Avastin & Herceptin

HER2+ mBC 1st Line

Avastin

mCRC TML

Actemra

SC Formulation (EU)

Afutuzumab (GA101)

Chronic Lymphocytic Leukemia

Actemra

Early Rheumatoid Arthritis

Avastin

BC Adjuvant HER2+

Avastin

BC Adj Triple Negative

Herceptin

BC HER 2+ Adj 2 Year

Xolair

Chronic Idiopathic Urticaria

Avastin

Glioblastoma 1st Line

Actemra

SC Formulation (US)

Lucentis

AMD High Dose (US)

T-DM1

HER 2+ mBC 1st Line

Ocrelizumab1

PPMS & RRMS

1.Not a licensed product

Source: Roche investor update, July 21, 2011

US & EU Filings Calendar

Current and Long-Term Liabilities

• $155 million 3.75% senior convertible notes due May 2015

▪ Notes issued May 16, 2011; conversion rate is 132.6682 / $1,000 face amount ($7.54/share)

▪ Bond hedge effectively increases conversion price to $8.87 / share

▪ Notes “net share settle” and are excluded from diluted EPS

• $180 million 2.875% convertible senior notes due February 2015

▪ Conversion rate is 151.713 shares / $1,000 face amount ($6.59/share)

▪ Approximately 40% of Genentech royalties
dedicated to quarterly principal and interest

▪ After retirement, securitized Genentech
royalties will be retained by PDL

• The purpose of restructuring PDL’s
debt is to free up cash for the
acquisition of new royalty assets

Recent Resolution of Legal Disputes

• PDL has resolved all challenges to the Queen et al. Patents in the
U.S. Patent and Trademark Office (USPTO) and the European
Patent Office (EPO) as well as its dispute with MedImmune

▪ UCB Pharma

- PDL received $10 million from UCB and PDL agreed not to sue UCB for any royalties related
to Cimzia

- UCB terminated patent interference proceedings before the USPTO and withdrew its
opposition appeal in the EPO

▪ MedImmune

- PDL paid MedImmune $65 million on February 15, 2011, and will pay them an additional
$27.5 million by February 2012

- MedImmune ceased support of any party in the EPO opposition appeal

▪ Novartis

- PDL dismissed its claims against Novartis in its Nevada lawsuit

- Novartis withdrew its opposition appeal to PDL’s European patent in EPO

- Beginning in 2Q11, PDL will pay Novartis an amount based on Novartis’ net ex-U.S. sales of
Lucentis during calendar year 2011 and beyond

▪ BioTransplant

- PDL acquired BioTransplant, a bankrupt company and instructed BioTransplant to withdraw
its opposition appeal in the EPO

Pending Dispute with Genentech and Roche

• In August 2010, Genentech sent a fax on behalf of Roche and Novartis
asserting its products do not infringe PDL’s supplementary protection
certificates (SPCs)

▪ Products include Avastin, Herceptin, Lucentis and Xolair

▪ SPCs are patent extensions in Europe that are issued on a country-by-country and product
-by-product basis

• PDL Response

▪ Genentech’s assertions are without merit

▪ PDL disagrees with Genentech’s assertions of non-infringement

▪ Genentech had waived its rights to challenge our patents, including SPCs in its 2003
Settlement Agreement with PDL

• 2003 Settlement Agreement

▪ Resolved intellectual property disputes between the two companies at that time

▪ Limits Genentech’s ability to challenge infringement of PDL’s patent rights, including
SPCs, and waives Genentech’s right to challenge or assist other in challenging the validity
of our patent rights

Nevada Lawsuit Against Genentech/Roche

• PDL filed a lawsuit against Genentech and Roche in Nevada state court

▪ Lawsuit states that fax constitutes a breach of 2003 Settlement Agreement because Genentech assisted
Roche in challenging PDL’s patents and SPCs

▪ Complaint seeks compensatory damages, including liquidated damages and other monetary remedies
set forth in the 2003 Settlement Agreement, punitive damages and attorney’s fees

• In November 2010, Genentech and Roche filed two motions to dismiss

▪ They contend that 2003 Settlement Agreement applies only to PDL’s U.S. patents

▪ They asserted that the Nevada court lacks personal jurisdiction over Roche

• On July 11, 2011, court denied Genentech and Roche's motion to dismiss four of
PDL's five claims for relief and denied Roche's separate motion to dismiss for lack of
personal jurisdiction.

▪ The court dismissed one of PDL's claims that Genentech committed a bad-faith breach of the covenant of
good faith and fair dealing

• The court ruling allows PDL to continue to pursue its claims that:

▪ Genentech is obligated to pay royalties to PDL on international sales of the Genentech Products

▪ Genentech, by challenging, at the behest of Roche and Novartis, whether PDL's SPCs cover the
Genentech Products breached its contractual obligations to PDL under the 2003 settlement agreement

▪ Genentech breached the implied covenant of good faith and fair dealing with respect to the 2003
settlement agreement

▪ Roche intentionally and knowingly interfered with PDL's contractual relationship with Genentech in
conscious disregard of PDL's rights

Business Strategy

• Purchase new royalty assets and
ladder like a bond portfolio

▪ Continue to reinvest in new royalty
assets and pay dividends

- Commercial stage products

- Sweet spot $75MM to $150MM

▪ Debt repaid by end of 2015

▪ Company continues as long as it can
generate satisfactory return

• If unable to acquire royalty assets on
attractive terms, build cash reserves
to:

▪ Repay debt

▪ Use all excess cash to pay dividends
to enhance shareholder return

▪ Wind-up company in 2016 timeframe

• Queen et al. patents expire end of 2014;
we anticipate royalties will likely continue
to ~2016

• PDL has two possible future pathways

Investment Highlights

• Strong historic revenue growth from approved products

• Potential for additional indications from existing products,
new product approvals and purchase of new royalty assets

• Potential to grow and diversify revenues with the addition of
new royalty assets

• Significantly reduced expenses with no R&D burn

• Liquidity - volume averages 3 million shares/day

• Return to stockholders

▪ In 2011, $0.60/share to be paid in quarterly regular dividends of
$0.15/share on March 15, June 15, September 15 and
December 15

Company	PDL BioPharma, Inc.
Ticker	PDLI (NASDAQ)
Location	Incline Village, Nevada
Employees	Less than 10
2010 Revenues	$345 million
2011- Q3YTD Revenue Guidance	$288 million
2011 Regular Dividends	$0.15 /share paid on March 15, June 15, September 15 & December 15
Q2-2011 Cash Position1	$236 million
Shares O/S2	~ 140 million
Average Daily Volume	~ 3 million shares