PDL BioPharma, Inc. announced that Roche has discontinued its involvement in the development of daclizumab in asthma, which both companies had been co-developing since 2004. The decision, following a portfolio review at Roche, has no effect on the companies' ongoing collaboration to co-develop daclizumab in transplant maintenance, and the companies intend to proceed with planned phase 2 studies for the transplant indication during 2007.

As a result, PDL now holds exclusive development and commercial rights to daclizumab in asthma, which has shown potential based on an earlier Phase 2 clinical trial. In a separate collaboration, Biogen Idec, Inc. and PDL are developing daclizumab in multiple sclerosis and indications other than transplant and respiratory diseases.

"We are evaluating opportunities to establish a new collaboration and would need to partner this program in order to further develop daclizumab in asthma," said Mark McDade, chief executive officer, PDL BioPharma. "In the meantime, we will redouble our efforts to focus daclizumab development in MS and chronic transplant."

PDL plans to provide details regarding the impact of these changes, including the anticipated reduction in 2006 research and development expenses, during the company's third quarter financial results conference call.