Financial Report: PPD 1Q10

PPD 1Q10

1Q Revenues: $346.8 million (-5%)

1Q Earnings: $26.1 million (earnings were $66.6 million in 1Q09)

Comments: Development segment revenue was $323.8 million (-3%) and income from operations was $36.8 million, compared to $62.6 million in 1Q09. Discovery sciences revenue was $0.3 million, compared to $5.2 million in 1Q09. Revenue for this segment in 1Q09 included two milestone payments from Janssen-Cilag totaling $5.0 million for regulatory approvals of Priligy. Discovery sciences loss from operations was $10.7 million, compared to income of $4.0 million in 1Q09, primarily due to lower revenue, an increase in R&D expenses from the two compounds in-licensed from Janssen Pharmaceutica, and expenses related to the spin-off of the company’s compound partnering business. Gross authorizations for the quarter totaled $607.1 million. Backlog at March 31, 2010, was $3.1 billion and contract cancellations and adjustments were $127.3 million.