PPD Reports Big Drop in Q1 Earnings, Opens Chinese Vaccine Facility
Wilmington, N.C-based contract research organization (CRO) PPD reported first quarter 2010 earnings late yesterday along with the opening of a vaccine clinical research center in Taizhou, China.
Through the new research center, located at the Taizhou China Medical City, PPD will provide clinical monitoring services to companies developing vaccines in China.
PPD’s first quarter 2010 net revenues were down almost $20 million from the first quarter 2009 to $346.8 million, compared to net revenue of $364.4 million in Q1 2009. First quarter 2010 income from operations was $26.1 million, a significant drop from 2009 first quarter income of $66.6 million. Earnings per share for the quarter were $0.14, compared with $0.38 for the same period last year.
PPD attributed the decrease in earnings to lower net revenue and increased expenses related to the company’s recent acquisitions and the planned spin-off of the company’s compound partnering business.
"During the first quarter, request for proposal activity improved, cancellations and adjustments decreased to a normal level, and we continued to make strategic investments to strengthen our business models and global infrastructure. Our leadership team is fully-aligned, and we are committed to pursuing our strategic initiatives to create long-term value for our shareholders," said David Grange, PPD CEO.