Royalty revenue growth will be the key to how the stock performs and how much they can return to shareholders via dividends. My opinion is the stock currently reflects a fair valuation and their history of growing royalty revenues will continue resulting in solid returns for shareholders. See the following info on the PDL web site for historical perspective and company commentary that they "expect strong growth in existing and future, not yet commercialized, products".

http://www.pdl.com/index.cfm?navId=196