PDL BioPharma, Inc. (NDAQ:PDLI) finally bowed to the demands of activist shareholders by announcing that it will seek offers for the sale of the company as a whole or of its key assets, according to a press release put out by the company yesterday.

The pharmaceutical company announced that it has completed its review of strategic alternatives and decided to pursue a sale of some or all of the company's assets. To this end, PDL has retained Merrill Lynch to help it shop itself and maximize shareholder value.

"Following a comprehensive review of available options, the PDL board has concluded that seeking offers for the sale of the company as a whole or of its key assets is our primary strategic focus," said Ms. Dawes, chairperson of the board. "We look forward to working with our advisors and interested parties to maximize stockholder value."

The company also announced that Mark McDade has stepped down from his position as chief executive and director effective immediately. Shareholders have been pushing for such a move for some time arguing that it was McDade who mismanaged the company and destroyed shareholder value. Patrick Gage has stepped in as interrim CEO until a suitable candidate can be found.

 "I look forward to leading the talented and dedicated employees of PDL during this time of transition to build stockholder value through increasing our operational efficiency and driving our business forward," said Dr. Gage, interim CEO.

In the end, this is great news for shareholders who have been struggling with lackluster performance for years. It also marks another success for Daniel Loeb's Third Point LLC and Steven Cohen's SAC Capital who have both pushed (albeit passive for SAC) for McDade to step down and the company to act to unlock shareholder value. Combined, these factors make PDLI a stock worth watching!

Related Companies
Genentech Inc. (DNA)
Medarex Inc. (MEDX)
DOR BioPharma Inc. (DORB)