Exhibit 99.2

PDL BIOPHARMA, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except per share amounts)

(unaudited)

	Three Months Ended September 30, 2007									Nine Months Ended September 30, 2007
	As Previously Issued			Impact of Adjustments			As Corrected			As Previously Issued			Impact of Adjustments			As Corrected
REVENUES:
Product sales, net	$	48,813		$	—		$	48,813		$	146,902		$	—		$	146,902
Royalties		55,135			—			55,135			183,572			—			183,572
License, collaboration and other		6,121			—			6,121			25,597			—			25,597
Total revenues		110,069			—			110,069			356,071			—			356,071
COSTS AND EXPENSES:
Cost of product sales		16,801			—			16,801			60,348			—			60,348
Research and development		56,285			(321	)		55,964			177,414			(321	)		177,093
Selling and marketing		20,162			—			20,162			60,505			—			60,505
General and administrative		19,732			—			19,732			54,563			—			54,563
Restructuring charges		4,545			—			4,545			6,131			—			6,131
Other acquisition-related charges		243			—			243			1,881			—			1,881
Asset impairment charges		315			—			315			315			5,016			5,331
Total costs and expenses		118,083			(321	)		117,762			361,157			4,695			365,852
Operating loss		(8,014	)		321			(7,693	)		(5,086	)		(4,695	)		(9,781	)
Interest income and other, net		5,378			—			5,378			15,341			—			15,341
Interest expense		(3,284	)		—			(3,284	)		(10,268	)		—			(10,268	)
Loss before income taxes		(5,920	)		321			(5,599	)		(13	)		(4,695	)		(4,708	)
Income tax expense		185			—			185			774			—			774
Net loss	$	(6,105	)	$	321		$	(5,784	)	$	(787	)	$	(4,695	)	$	(5,482	)
NET LOSS PER SHARE:
Basic and diluted	$	(0.05	)				$	(0.05	)	$	(0.01	)				$	(0.05	)
Weighted average shares—basic and diluted		116,861						116,861			116,017						116,017

In addition to the consolidated financial statements presented in accordance with GAAP, PDL uses non-GAAP measures of operating performance, which are adjusted from results based on GAAP to exclude depreciation of property and equipment; stock-based compensation expense; amortization of intangible assets; interest income and other, net; interest expense; income taxes and certain other miscellaneous items. PDL believes that the non-GAAP results provide added insight into its performance by focusing on results generated by its ongoing operations. PDL uses the non-GAAP results when assessing the performance of its ongoing operations, in making resource allocation decisions and for planning and forecasting. Additionally, PDL considers these non-GAAP results in awarding bonus and other incentive compensation to its employees, including management. The non-GAAP financial measures should be considered as a supplement to, not as a substitute for, or superior to, the measures of financial performance prepared in accordance with GAAP. Investors are encouraged to review the reconciliation of the non-GAAP financial measures to their most directly comparable GAAP financial measures.

PDL BIOPHARMA, INC.

NON-GAAP CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS ⁽¹⁾

(in thousands, except per share amounts)

(unaudited)

	Three Months Ended September 30,				Nine Months Ended September 30,
	2007		2006		2007		2006
REVENUES:
Product sales, net	$	48,813	$	41,064	$	146,902	$	117,650
Royalties		55,135		42,533		183,572		140,524
License, collaboration and other		6,121		27,795		25,597		48,754
Total revenues		110,069		111,392		356,071		306,928
COSTS AND EXPENSES:
Cost of product sales		8,429		6,772		35,233		30,083
Research and development		46,942		51,716		151,945		147,786
Selling and marketing		18,658		14,245		56,293		40,807
General and administrative		16,782		12,155		45,639		38,424
Non-GAAP costs and expenses		90,811		84,888		289,110		257,100
Non-GAAP net income	$	19,258	$	26,504	$	66,961	$	49,828
NON-GAAP NET INCOME PER SHARE:
Basic	$	0.16	$	0.23	$	0.58	$	0.44
Weighted average shares—basic		116,861		113,868		116,017		113,293
Diluted	$	0.16	$	0.23	$	0.57	$	0.42
Weighted average shares—diluted (2)		118,810		116,594		118,064		117,438

(1) These non-GAAP condensed consolidated statements of operations exclude amortization of intangible assets; depreciation of property and equipment; stock-based compensation expense; interest income and other, net; interest expense; income taxes and certain other miscellaneous items that were not classified in the foregoing categories and are identified below.

During the three and nine months ended September 30, 2007, the miscellaneous excluded items consisted of (a) restructuring charges of $4.5 million and $6.1 million, respectively, related to a reduction in force, primarily at the Company’s manufacturing facility, in the third quarter of 2007, and facilities-related charges, (b) other acquisition-related charges of $243,000 and $1.9 million, respectively, related to the operations of ESP Pharma Holding Company, Inc. prior to the Company’s acquisition of ESP Pharma on March 23, 2005, primarily product returns, as well as returns of Retavase for sales made prior to the Company’s acquisition of the rights to the product from Centocor, Inc. on the same date, and (c) asset impairment charges of $315,000 and $5.3 million, respectively, $5.0 million of which in the nine months ended September 30, 2007 relates to the write-down of certain property held for sale to the estimated realizable value in the second quarter of 2007. During the three and nine months ended September 30, 2006, the miscellaneous excluded items consisted of (a) a $5.6 million charge for both periods incurred in connection with the company’s acquisition in September 2006 of certain Cardene-related rights from Roche, (b) $0 and $4.1 million, respectively, in charges for payments to Wyeth in consideration of Wyeth’s consent to the Company’s transfer of the Company’s rights to the off-patent branded products, (c) other acquisition-related charges of $2.6 million and $5.9 million, respectively, and (d) asset impairment charges of $1.7 million and $2.6 million, respectively.

(2) Diluted weighted average shares on a non-GAAP basis exclude the impact of 12.4 million shares and 10.6 million shares of common stock underlying the convertible notes the Company issued in July 2003 and February 2005, respectively.

PDL BIOPHARMA, INC.

RECONCILIATION OF NON-GAAP CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS TO GAAP

(in thousands, except per share amounts)

(unaudited)

	Three Months Ended September 30, 2007
			Adjustments
	Non-GAAP Results		Amortization of Intangible Assets			Depreciation of Property and Equipment			Stock-Based Compensation Expenses			Other Excluded Items			GAAP Results As Reported
REVENUES:
Product sales, net	$	48,813	$	—		$	—		$	—		$	—		$	48,813
Royalties		55,135		—			—			—			—			55,135
License, collaboration and other		6,121		—			—			—			—			6,121
Total revenues		110,069		—			—			—			—			110,069
COSTS AND EXPENSES:
Cost of product sales		8,429		8,372			—			—			—			16,801
Research and development		46,942		412			5,818			2,792			—			55,964
Selling and marketing		18,658		—			565			939			—			20,162
General and administrative		16,782		—			1,641			1,309			—			19,732
Restructuring charges		—											4,545			4,545
Other acquisition-related charges		—											243			243
Asset impairment charges		—		—						—			315			315
Costs and expenses		90,811		8,784			8,024			5,040			5,103			117,762
Operating income (loss)		19,258		(8,784	)		(8,024	)		(5,040	)		(5,103	)		(7,693	)
Interest income and other, net		—		—			—			—			5,378			5,378
Interest expense		—		—			—			—			(3,284	)		(3,284	)
Income (loss) before income taxes		19,258		(8,784	)		(8,024	)		(5,040	)		(3,009	)		(5,599	)
Income tax expense		—		—			—			—			185			185
Net income (loss)	$	19,258	$	(8,784	)	$	(8,024	)	$	(5,040	)	$	(3,194	)	$	(5,784	)
NET INCOME (LOSS) PER SHARE:
Basic	$	0.16													$	(0.05	)
Weighted average shares — basic		116,861														116,861
Diluted	$	0.16													$	(0.05	)
Weighted average shares — diluted		118,810														116,861
	Three Months Ended September 30, 2006
	Non-GAAP Results		Amortization of Intangible Assets			Depreciation of Property and Equipment			Stock-Based Compensation Expenses			Other Excluded Items			GAAP Results As Reported
REVENUES:
Product sales, net	$	41,064	$	—		$	—		$	—		$	—		$	41,064
Royalties		42,533		—			—			—			—			42,533
License, collaboration and other		27,795		—			—			—			—			27,795
Total revenues		111,392		—			—			—			—			111,392
COSTS AND EXPENSES:
Cost of product sales		6,772		10,661			—			—			—			17,433
Research and development		51,716		412			6,397			3,368			5,621			67,514
Selling and marketing		14,245		—			452			955						15,652
General and administrative		12,155		—			562			1,669						14,386
Other acquisition-related charges		—		—			—			—			2,615			2,615
Asset impairment charges		—		—			—			—			1,656			1,656
Costs and expenses		84,888		11,073			7,411			5,992			9,892			119,256
Operating income (loss)		26,504		(11,073	)		(7,411	)		(5,992	)		(9,892	)		(7,864	)
Interest income and other, net		—		—			—			—			5,042			5,042
Interest expense		—		—			—			—			(3,693	)		(3,693	)
Income (loss) before income taxes		26,504		(11,073	)		(7,411	)		(5,992	)		(8,543	)		(6,515	)
Income tax expense		—		—			—			—			208			208
Net income (loss)	$	26,504	$	(11,073	)	$	(7,411	)	$	(5,992	)	$	(8,751	)	$	(6,723	)
NET INCOME (LOSS) PER SHARE:
Basic	$	0.23													$	(0.06	)
Weighted average shares — basic		113,868														113,868
Diluted	$	0.23													$	(0.06	)
Weighted average shares — diluted		116,594														113,868

PDL BIOPHARMA, INC.

RECONCILIATION OF NON-GAAP CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS TO GAAP

(in thousands, except per share amounts)

(unaudited)

	Nine Months Ended September 30, 2007
			Adjustments
	Non-GAAP Results		Amortization of Intangible Assets			Depreciation of Property and Equipment			Stock-Based Compensation Expenses			Other Excluded Items			GAAP Results As Reported
REVENUES:
Product sales, net	$	146,902	$	—		$	—		$	—		$	—		$	146,902
Royalties		183,572		—			—			—			—			183,572
License, collaboration and other		25,597		—			—			—			—			25,597
Total revenues		356,071		—			—			—			—			356,071
COSTS AND EXPENSES:
Cost of product sales		35,233		25,115			—			—			—			60,348
Research and development		151,945		1,235			15,871			8,042			—			177,093
Selling and marketing		56,293		—			1,516			2,696			—			60,505
General and administrative		45,639		—			5,324			3,600			—			54,563
Restructuring charges		—		—			—			—			6,131			6,131
Other acquisition-related charges		—		—			—			—			1,881			1,881
Asset impairment charges		—		—			—			—			5,331			5,331
Costs and expenses		289,110		26,350			22,711			14,338			13,343			365,852
Operating income (loss)		66,961		(26,350	)		(22,711	)		(14,338	)		(13,343	)		(9,781	)
Interest income and other, net		—		—			—			—			15,341			15,341
Interest expense		—		—			—			—			(10,268	)		(10,268	)
Income (loss) before income taxes		66,961		(26,350	)		(22,711	)		(14,338	)		(8,270	)		(4,708	)
Income tax expense		—		—			—			—			774			774
Net income (loss)	$	66,961	$	(26,350	)	$	(22,711	)	$	(14,338	)	$	(9,044	)	$	(5,482	)
NET INCOME (LOSS) PER SHARE:
Basic	$	0.58													$	(0.05	)
Weighted average shares — basic		116,017														116,017
Diluted	$	0.57													$	(0.05	)
Weighted average shares — diluted		118,064														116,017
	Nine Months Ended September 30, 2006
			Adjustments
	Non-GAAP Results		Amortization of Intangible Assets			Depreciation of Property and Equipment			Stock-Based Compensation Expenses			Other Excluded Items			GAAP Results As Reported
REVENUES:
Product sales, net	$	117,650	$	—		$	—		$	—		$	—		$	117,650
Royalties		140,524		—			—			—			—			140,524
License, collaboration and other		48,754		—			—			—			—			48,754
Total revenues		306,928		—			—			—			—			306,928
COSTS AND EXPENSES:
Cost of product sales		30,083		31,791			—			—			—			61,874
Research and development		147,786		1,386			21,209			10,044			5,621			186,046
Selling and marketing		40,807		—			992			2,710			4,123			48,632
General and administrative		38,424		—			1,342			4,986			—			44,752
Other acquisition-related charges		—		—			—			—			5,910			5,910
Asset impairment charges		—		—			—			—			2,556			2,556
Costs and expenses		257,100		33,177			23,543			17,740			18,210			349,770
Operating income (loss)		49,828		(33,177	)		(23,543	)		(17,740	)		(18,210	)		(42,842	)
Interest income and other, net		—		—			—			—			12,436			12,436
Interest expense		—		—			—			—			(9,465	)		(9,465	)
Income (loss) before income taxes		49,828		(33,177	)		(23,543	)		(17,740	)		(15,239	)		(39,871	)
Income tax expense		—		—			—			—			441			441
Net income (loss)	$	49,828	$	(33,177	)	$	(23,543	)	$	(17,740	)	$	(15,680	)	$	(40,312	)
NET INCOME (LOSS) PER SHARE:
Basic	$	0.44													$	(0.36	)
Weighted average shares — basic		113,293														113,293
Diluted	$	0.42													$	(0.36	)
Weighted average shares — diluted		117,438														113,293

PDL BIOPHARMA, INC.

CONDENSED CONSOLIDATED BALANCE SHEET DATA

(in thousands)

(unaudited)

	September 30, 2007							December 31, 2006
	As Previously Issued		Impact of Adjustments			As Corrected
Cash, cash equivalents, marketable securities and restricted cash	$	409,487	$	—		$	409,487	$	426,285
Total assets	$	1,168,089	$	(4,695	)	$	1,163,394	$	1,141,893
Total stockholders’ equity	$	516,554	$	(4,695	)	$	511,859	$	467,541

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW DATA

(in thousands)

(unaudited)

	Nine Months Ended
	September 30, 2007									September 30, 2006
	As Previously Issued			Impact of Adjustments			As Corrected
Net loss	$	(787	)	$	(4,695	)	$	(5,482	)	$	(40,312	)
Adjustments to reconcile net loss to net cash provided by operating activities		66,584			4,695			71,279			78,852
Changes in assets and liabilities		(24,073	)		—			(24,073	)		37,776
Net cash provided by operating activities	$	41,724		$	—		$	41,724		$	76,316