PDL BioPharma To Be Paid $19.5 Million By Merck To Settle Keytruda Patent Suit

Shares of PDL BioPharma Inc. were indicated up over 2% in premarket trade Monday, after the marketer of biopharmaceutical products said it will be paid a one-time lump sum of $19.5 million by Merck & Co. Inc. to settle a patent infringement suit related to Merck's Keytruda skin-cancer treatment. Under terms of the settlement, PDL will grant Merck a fully paid-up, royalty free, non-exclusive license to certain of the patent rights related to Keytruda, as well as an agreement not to sue Merck for royalties regarding Keytruda. "We are pleased to resolve this patent infringement lawsuit with Merck with a favorable monetary settlement to PDL as well as eliminating potential future litigation costs related to this matter for both parties," said PDL Chief Executive John McLaughlin. The stock has shed 4.7% year to date through Friday, while Merck shares have advanced 5.1% and the S&P 500 has gained 4.9%.