Financial Report: PPD 1Q

PPD 1Q

1Q Revenues: $364.9 million (-7%)

1Q Earnings:$44.6 million (+11%)

Comments: Development segment revenue was $335.4 million (-7%). Discovery sciences segment revenue was $5.7 million (-64%), which included two milestone payments from Janssen-Cilag totaling $5.0 million. New business authorizations for the quarter totaled $579.7 million. Contract cancellations and adjustments for the quarter were $214.6 million, including a $76.9 million cancellation from a large biotech client for a multinational clinical trial. Backlog at March 31, 2009, was $3.2 billion.

The company has also announced the opening of an office in Tokyo, Japan, expanding its Phase II-IV clinical development services in the Asia-Pacific region. PPD will provide clinical management services in key therapeutic areas from this location. The office strengthens PPD’s operations in Japan, where it has previously worked in the region through a subcontractor.

“Japan offers competitive timelines for site startup and patient enrollment, and the government is making major improvements to streamline drug development, bringing Japan’s regulatory timelines more in line with the rest of the world,” said Fred Eshelman, chief executive officer of PPD. “With our clients increasingly including Japan in their global drug development programs, having a base of operations in Tokyo will enable us to better meet their growing needs.”