OR WAIT 15 SECS
WILMINGTON, N.C. (April 3, 2009)-PPD, Inc. (Nasdaq: PPDI) today announced it has entered into a definitive agreement to sell the business of its wholly-owned subsidiary Piedmont Research Center, LLC to Charles River Laboratories International, Inc. Piedmont Research Center provides preclinical research and evaluation of anticancer agents and therapies.
"Under Beth Hollister's leadership, Piedmont Research Center has been a solid contributor to our discovery sciences segment since we acquired this business in 2002," said Fred Eshelman, chief executive officer of PPD. "Although this unit has grown nicely over the years, Piedmont Research Center is somewhat of a niche operation for PPD, and its in vivo and in vitro services should be a better long-term strategic fit for Charles River's preclinical research business. Following the completion of this divestiture, we intend to continue to focus on our core service businesses and compound partnering programs to drive future revenue and earnings growth."
Under the terms of the agreement, the total sale price for the business of Piedmont Research Center is $46.0 million in cash. The closing of the transaction is subject to customary conditions and is expected to be completed during the second quarter. Assuming it closes as and when expected, PPD anticipates the divestiture will reduce PPD's projected full year 2009 discovery sciences segment net revenue by approximately $19.0 million. In addition, PPD expects this divestiture will increase projected full year 2009 diluted earnings per share by approximately $0.12, including the after-tax gain on the sale of approximately $17.0 million in the second quarter. Finally, PPD expects this divestiture will impact its projected quarterly diluted earnings per share for the remainder of 2009 as follows: Q2 - $0.14; Q3 - ($0.01); and Q4 - ($0.01).
PPD is a leading global contract research organization providing discovery, development and post-approval services as well as compound partnering programs. Our clients and partners include pharmaceutical, biotechnology, medical device, academic and government organizations. With offices in 33 countries and approximately 10,500 professionals worldwide, PPD applies innovative technologies, therapeutic expertise and a commitment to quality to help its clients and partners maximize returns on their R&D investments and accelerate the delivery of safe and effective therapeutics to patients. For more information, visit our Web site at http://www.ppdi.com.
Except for historical information, all of the statements, expectations and assumptions contained in this news release, including statements, expectations and assumptions about the divestiture of Piedmont Research Center and PPD's 2009 financial guidance, are forward-looking statements that involve a number of risks and uncertainties. Although PPD attempts to be accurate in making these forward-looking statements, it is possible that future circumstances might differ from the assumptions on which such statements are based. In addition, other important factors which could cause results to differ materially include the following: risks that the divestiture does not occur, is delayed or is amended; other risks associated with divestitures, such as purchase price adjustments; risks of acquisitions and investments, including impairments; risks associated with the development and commercialization of drugs, including earnings dilution and obtaining regulatory approval; continued success in sales growth; loss of large contracts; increased cancellation rates; economic conditions and outsourcing trends in the pharmaceutical, biotechnology, medical device, academic and government industry segments; competition within the outsourcing industry; the ability to attract and retain key personnel; risks associated with and dependence on collaborative relationships; rapid technological advances that make our products and services less competitive; risks that we may not continue our dividend policy; and the other risk factors set forth from time to time in the SEC filings for PPD, copies of which are available free of charge upon request from the PPD investor relations department.