PDL
BioPharma Inc. has agreed to settle a legal dispute with
Novartis under which it will pay the Swiss drugmaker an amount based on the net
sales of the eye drug Lucentis made by Novartis this year and beyond.

The settlement resolves all disputes between the companies,
PDL said in a statement.

Its shares rose 24 cents, or 4.9 percent, to $5.10 in pre-market
trading.

PDL, which is based in Incline Village,
Nev., agreed to dismiss claims against
Novartis in state court in Nevada,
and said Novartis agreed to withdraw its challenge in the European Patent
Office of PDL’s Queen patent.

PDL said the settlement does not affect its claims against
Genentech Inc. and Roche Ltd. in Nevada
court.