PDL BioPharma Shares Continue Sliding

The stock fell 33 cents, or 3 percent, to $10.80 in midday trading. Shares fell to $10.36 at one point last Wednesday, their lowest value in four years, but then edged higher Thursday and Friday.

On Tuesday, the company said it will no longer pursue a sale of the company and plans to cut 260 jobs. It had already announced plans to cut 320 jobs. Meanwhile, PDL plans to distribute to shareholders at least $500 million of the proceeds from sales of manufacturing and cardiovascular facilities, sparking a mixed reaction from Wall Street.

The company on Monday closed one of those sales, its IV Busulfex, to Ostuka Pharmaceutical Co. for $200 million. The drug is a conditioning agent used as a pretreatment for leukemia patients getting bone-marrow transplants. The sale was announced in December.

"The key question now is what is the value of the remaining assets of PDL as an ongoing company," said Susquehanna Financial Group analyst Jason Kolbert, in a note to investors.

He downgraded the stock to "Neutral" from "Positive" and valued the shares at $9 apiece.

Though restructuring and job cuts are expected to cut costs in half, he said, management still may not be cutting enough. He also said he is unsure whether current spending on the company's pipeline is justifiable.

During the fourth quarter, expenses rose 18 percent to $75.2 million.

Last week, BMO Capital Markets analyst Jason Zhang, reaffirmed a "Market Perform" rating, Lehman Brothers analyst Jim Birchenough downgraded the stock to "Equal weight" from "Overweight," and Lazard Capital Markets analyst Joel Sendek downgraded the stock to "Hold" from "Buy."