PPD Plans for Single-Digit Growth
PPD expects limited revenue growth in 2010, according to the contract research organization’s (CRO’s) 2010 guidance announced last night.
The company anticipates net revenue for the full year 2010 to be in the range of $1.31billion to $1.43 billion with earnings per share (EPS) to be in the range of $1.00 to $1.12. PPD has not yet released its final year-end results for 2009, but, as of the end of the third quarter, PPD’s expected revenue for 2009 was $1.29 billion to $1.315 billion with EPS in the range of $1.38 to $1.40. The drop in EPS in 2010 is a result of PPD’s plans to spin off its compound partnering business from CRO operations. Once the spin-off is complete—by mid-year, PPD said—the two businesses will operate as two independent public companies. Only the CRO business will carry the PPD name.
"We have entered 2010 with clear objectives to restore growth in our business and to create long-term value for our shareholders," said PPD CEO David Grange in a statement. "Strengthening our business models, establishing innovative partnerships, and enhancing our global capacity remain key priorities for us in 2010. As we continue to align our business for success, we will continue to invest strategically in our global future. "