Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: PDL BioPharma, (Nasdaq: PDLI) popped 19% in intraday trading today after announcing plans to begin paying a quarterly dividend of $0.15 per share and an agreement with Novartis AG (NYSE: NVS) that resolves a legal dispute between the two companies.

So what: Novartis markets an eye-care drug that uses patented PDLI technology in Europe. Novartis has agreed not to challenge PDLI's patent in Europe, while PDLI has agreed to pay Novartis a portion of European sales of the drug.

Now what: The Novartis agreement reduces risk to the outlook and provides potential for higher sales in Europe. Initiating a dividend, which management teams hate to cancel, signals confidence in PDLI's outlook. On a less positive note, PDLI remains in a legal dispute with its US marketing partners and has missed consensus EPS estimates for four consecutive quarters. The stock appears compelling at a P/E ratio of 5.6x, but the risks are high.

Interested in more info on PDLI? Add it to your watchlist by clicking here.

Fool contributor Cindy Johnson owns shares of PDL BioPharma, (Nasdaq: PDLI  ) ...woo-hoo! We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.