Pharmaceutical Product Development Inc. (PPDI, Financial) filed Quarterly Report for the period ended 2009-03-31.
As a leading global provider of discovery and development services and products for pharmaceutical biotechnology and medical device companies PPD applies innovative technologies therapeutic expertise and a commitment to quality to help clients maximize the return on their R&D investments. With proven discovery through post-market resources the company also offers compound partnering opportunities. PPD has more than 6600 professionals in 27 countries around the world. For more information on PPD visit the Web site at http://www.ppdi.com. Pharmaceutical Product Development Inc. has a market cap of $2.43 billion; its shares were traded at around $20.58 with a P/E ratio of 12.5 and P/S ratio of 1.5. The dividend yield of Pharmaceutical Product Development Inc. stocks is 2.4%. Pharmaceutical Product Development Inc. had an annual average earning growth of 22.1% over the past 10 years. GuruFocus rated Pharmaceutical Product Development Inc. the business predictability rank of 5-star.
The Discovery Sciences segment generated net revenue of $5.7 million in the first quarter of 2009, a decrease of $10.3 million from the first quarter of 2008. The higher 2008 Discovery Sciences segment net revenue was mainly attributable to the $15.0 million milestone payment we earned in the first quarter of 2008 as a result of Takedas submission of the alogliptin NDA to the FDA offset by $5.0 million in milestone payments we earned in the first quarter of 2009 as a result of regulatory approvals of Priligy in Finland and Sweden.
Total direct costs decreased $17.7 million to $188.6 million in the first quarter of 2009 primarily as the result of a decrease in Development segment direct costs. Development segment direct costs decreased $13.0 million to $164.2 million in the first quarter of 2009. The primary reason for this was a decrease in personnel costs of $9.3 million, a decrease in consulting, temporary and contract labor of $5.2 million and a decrease in facility costs of $1.0 million, partially offset by an increase of $4.4 million related to losses on our hedging position. Of the $13.0 million decrease in direct costs, $8.5 million of the decrease was due to the strengthening of the U. S. dollar relative to the euro, Brazilian real and pound sterling while the remaining decrease was due to expense reductions.
SG&A expenses decreased $4.2 million to $94.2 million in the first quarter of 2009. As a percentage of total net revenue, SG&A expenses increased to 25.8% in the first quarter of 2009 as compared to 25.1% for the same quarter in 2008. The decrease in SG&A expenses in absolute terms was primarily related to a decrease in bad debt costs of $2.1 million, a decrease in recruitment and relocation costs of $1.8 million and a decrease in travel costs of $1.3 million, partially offset by a $1.8 million increase in personnel costs.
Depreciation and amortization expense increased $0.5 million to $15.2 million in the first quarter of 2009. The increase relates to property and equipment we acquired over the past year to accommodate growth. Capital expenditures were $14.3 million in the first quarter of 2009. Our capital expenditures in the first quarter of 2009 primarily consisted of $9.4 million for computer software and hardware, $2.4 million for additional scientific equipment for our laboratory units and $2.2 million for various leasehold improvements.
Other income (expense), net decreased $5.9 million to ($0.2) million in the first quarter of 2009. This decrease was due primarily to a $4.3 million decrease in interest in
Read the The complete ReportPPDI is in the portfolios of Third Avenue Management, Jean-Marie Eveillard of Arnhold & S. Bleichroeder Advisers, LLC.
As a leading global provider of discovery and development services and products for pharmaceutical biotechnology and medical device companies PPD applies innovative technologies therapeutic expertise and a commitment to quality to help clients maximize the return on their R&D investments. With proven discovery through post-market resources the company also offers compound partnering opportunities. PPD has more than 6600 professionals in 27 countries around the world. For more information on PPD visit the Web site at http://www.ppdi.com. Pharmaceutical Product Development Inc. has a market cap of $2.43 billion; its shares were traded at around $20.58 with a P/E ratio of 12.5 and P/S ratio of 1.5. The dividend yield of Pharmaceutical Product Development Inc. stocks is 2.4%. Pharmaceutical Product Development Inc. had an annual average earning growth of 22.1% over the past 10 years. GuruFocus rated Pharmaceutical Product Development Inc. the business predictability rank of 5-star.
Highlight of Business Operations:
Capital expenditures for the three months ended March 31, 2009 totaled $14.3 million. These capital expenditures were primarily for computer software and hardware, scientific equipment for our laboratory units and various leasehold improvements. We expect our capital expenditures to be approximately $65 million to $75 million for the remainder of 2009, primarily for facility expansion and improvements, as well as investments in information technology and new laboratory equipment.The Discovery Sciences segment generated net revenue of $5.7 million in the first quarter of 2009, a decrease of $10.3 million from the first quarter of 2008. The higher 2008 Discovery Sciences segment net revenue was mainly attributable to the $15.0 million milestone payment we earned in the first quarter of 2008 as a result of Takedas submission of the alogliptin NDA to the FDA offset by $5.0 million in milestone payments we earned in the first quarter of 2009 as a result of regulatory approvals of Priligy in Finland and Sweden.
Total direct costs decreased $17.7 million to $188.6 million in the first quarter of 2009 primarily as the result of a decrease in Development segment direct costs. Development segment direct costs decreased $13.0 million to $164.2 million in the first quarter of 2009. The primary reason for this was a decrease in personnel costs of $9.3 million, a decrease in consulting, temporary and contract labor of $5.2 million and a decrease in facility costs of $1.0 million, partially offset by an increase of $4.4 million related to losses on our hedging position. Of the $13.0 million decrease in direct costs, $8.5 million of the decrease was due to the strengthening of the U. S. dollar relative to the euro, Brazilian real and pound sterling while the remaining decrease was due to expense reductions.
SG&A expenses decreased $4.2 million to $94.2 million in the first quarter of 2009. As a percentage of total net revenue, SG&A expenses increased to 25.8% in the first quarter of 2009 as compared to 25.1% for the same quarter in 2008. The decrease in SG&A expenses in absolute terms was primarily related to a decrease in bad debt costs of $2.1 million, a decrease in recruitment and relocation costs of $1.8 million and a decrease in travel costs of $1.3 million, partially offset by a $1.8 million increase in personnel costs.
Depreciation and amortization expense increased $0.5 million to $15.2 million in the first quarter of 2009. The increase relates to property and equipment we acquired over the past year to accommodate growth. Capital expenditures were $14.3 million in the first quarter of 2009. Our capital expenditures in the first quarter of 2009 primarily consisted of $9.4 million for computer software and hardware, $2.4 million for additional scientific equipment for our laboratory units and $2.2 million for various leasehold improvements.
Other income (expense), net decreased $5.9 million to ($0.2) million in the first quarter of 2009. This decrease was due primarily to a $4.3 million decrease in interest in
Read the The complete ReportPPDI is in the portfolios of Third Avenue Management, Jean-Marie Eveillard of Arnhold & S. Bleichroeder Advisers, LLC.
