Exhibit 99.1

                            [Third Point Letterhead]


October 17, 2007

Ms. Karen A. Dawes
Mr. Bradford S. Goodwin
Mr. Joseph Klein III
Laurence Jay Korn, Ph.D.
Richard Murray, Ph.D.
John S. Saxe, Esq.
L. Patrick Gage, Ph.D.

PDL BioPharma, Inc.
34801 Campus Drive
Fremont, CA 94555

PDL Board Members:

We are encouraged by PDL's October 1st press release announcing that the Board
will actively seek the sale of the entire Company or all of its component
pieces. We are also pleased with the progress apparently being made by the
Merrill Lynch investment bankers in spearheading this process and advancing it
expeditiously to a successful conclusion.

Despite these positive developments, we are disappointed that the sale process
is still being led by a Board that does not include a Third Point
representative, and that Patrick Gage remains the Company's CEO, despite having
demonstrated his unsuitability. Accordingly, although we remain convinced that
PDLI shares are undervalued, and that a sale will maximize shareholder value, in
light of your continuing refusal to provide us with a voice in the Company's
affairs through a Board seat, we have reduced our position.

Despite the reduction in our PDLI position, we have maintained a holding above
the 13D filing threshold, and remain one of the Company's largest shareholders.
We will be carefully watching developments, and assessing our options, as events
unfold.



Sincerely,

/s/ Daniel S. Loeb

Daniel S. Loeb