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What: PDL BioPharma
So what: A U.S. district court found Medimmune, a unit of AstraZeneca
Now what: In a worst-case scenario, PDL could have to repay up to $280 million in royalties paid from 1998 to 2009. The ruling today and potential future risks are enough to make me leave shares of PDL BioPharma alone for now. Despite its low 6.9 price/earnings ratio, there is a lot of overhanging risk that still needs to be resolved, although when they are resolved shares could look like a real value.
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Fool contributor Travis Hoium does not have a position in any company mentioned. You can follow Travis on Twitter at @FlushDrawFool, check out his personal stock holdings or follow his CAPS picks at TMFFlushDraw.
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