Summary of Financial Results

The financial results for the quarter ended March 31, 2009 represent the first full quarter of operations for Facet as an independent company since its spin-off from PDL BioPharma, Inc. (PDL) on December 18, 2008. The results for the quarter ended March 31, 2008 are comprised of the results of PDL's former biotechnology operations, which were derived from PDL's historical consolidated financial statements, prior to the spin-off. These 2008 first quarter results include costs and expenses related to the company's former manufacturing facility up through the date of its sale in March 2008, allocations of costs related to PDL's strategic initiatives and employee-related costs that are higher than the company expects going forward as a result of the restructuring activities initiated in March 2008 and January 2009.

 -- Total revenues for the first quarter of 2009 were $9.6 million compared    to $4.7 million in the same period of 2008.  This increase was    primarily due to revenue recognized under the company's elotuzumab    collaboration with Bristol-Myers Squibb Company (BMS), which was    executed in the third quarter of 2008, and royalties received from EKR    Therapeutics, Inc. on sales of the pre-mixed bag formulations of    Cardene(R). -- Total costs and expenses for the first quarter of 2009 were $38.5    million compared to $17.4 million reported for the comparable 2008    period. Total costs and expenses for the first quarter of 2008 were    reduced by a $49.7 million gain recognized on the sale of the company's    former manufacturing facility during the period. Excluding this gain,    total costs and expenses for the first quarter of 2009 decreased by    $28.5 million, or 43 percent, from the first quarter of 2008.    - Research and development (R&D) expenses decreased to $24.1 million      for the first quarter of 2009 from $45.2 million for the same period      of 2008.  This decrease was primarily due to reduced      personnel-related costs resulting from the company's restructuring      activities initiated in March 2008 and January 2009 and lower      development and personnel-related costs as a result of the sale of      the company's former manufacturing facility in March 2008.    - In the first quarter of 2009, general and administrative (G&A)      expenses decreased to $10.3 million from $12.8 million for the prior      year comparable period. This decrease was primarily due to reduced      personnel-related expenses as a result of the restructuring      activities and lower legal and other expenses, which were higher in      the first quarter of 2008 due to PDL's then ongoing strategic      initiatives. G&A expenses in the first quarter of 2009 included $1.7      million in idle facility expenses.    - In the first quarter of 2009, restructuring charges were $4.2 million      compared to $5.5 million for the comparable 2008 period. This      decrease was primarily attributable to the reduced scope of the 2009      restructuring as compared to the 2008 restructuring.    - Asset impairment charges in the first quarter of 2008 were $3.5      million; there were no such charges in the first quarter of 2009. The      2008 period charges related to research and information technology      assets from which the company expected to derive no future benefit.    - As noted above, the company recognized a gain of $49.7 million in the      first quarter of 2008 related to the sale of its former manufacturing      facility. -- Net loss for the first quarter of 2009 was $29.2 million, or $1.22 per    basic and diluted share, compared to a net loss of $13.2 million, or    $0.55 per basic and diluted share, for the first quarter of 2008. -- Cash, cash equivalents, marketable securities and restricted cash    totaled $383.4 million at March 31, 2009, a decrease from $403.4    million at December 31, 2008, reflecting cash utilization of $20.0    million in the first quarter of 2009. 

"In the five months since Facet became an independent company, we have made significant strides in focusing our strategy and positioning the organization to be a leading oncology company while maintaining a commitment to financial discipline," said Faheem Hasnain, president and chief executive officer of Facet Biotech. "In particular, we are pleased with the progress we are making with all of our development programs, especially our most advanced candidate, daclizumab, which, after discussions with regulatory agencies, now has a potentially more efficient and accelerated path towards registration.