Drug developer PDL BioPharma Inc. said Tuesday Swiss drug maker Roche Holding AG pulled out of their partnership on to develop daclizumab as an organ transplant therapy.

The co-development agreement on the organ transplant program will formally end in May 2007. The move gives PDL exclusive rights for daclizumab's use in transplant maintenance.

"Roche made this decision subsequent to a periodic internal review of its development programs," PDL said in a statement.

Earlier this year, Roche pulled out of another partnership with PDL to develop the drug to treat asthma.

PDL said it will provide an update on the expected financial impact of the move with its 2006 financial results, expected to be released in February.

Shares of PDL rose 17 cents to close at $22.67 on the Nasdaq, but lost $1, or 4.4 percent, to $21.67 in aftermarket activity. The shares have ranged between $16.39 and $33.30 over the past year.