BUSINESSWEEK'S HOT GROWTH COMPANIES

Hot Growth Special Report 2006 >

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Pharmaceutical Product Development (PPDI)

Negotiating the modern-day labyrinth of regulations to get new drug from the lab through experiments and into the marketplace would make even the original Messrs. Merck and Lilly consider other careers. That's where Pharmaceutical Product Development comes in. The Wilmington (N.C.)-based company -- run by a duo formerly at drug giant Glaxo -- employs a global network of 8,400 employees in 27 countries who help coordinate clinical trials for drug manufacturers at a lower cost than if they did the trials themselves. Business has been booming: Annual sales have risen by an average 19% over the past three years to $1.04 billion, with profits up an average 54% during that same period to $131.5 million. PPD's latest contract: A deal with PDL BioPharma to do comprehensive molecular profiling to help the Fremont (Calif.) company come up with new compounds.

Company Info

2005 Rank

NR

Market Value*
($ Millions)

4,160.8

Sales*
($ Millions)

1,092.4

Sales Growth
(3-yr. avg. annual)

19.1 %

Profits*
($ Millions)

137.7

Profit Growth
(3-yr. avg. annual)

54.3 %

Return on Inv. Capital (3-yr.)

13.8 %

Share Price
12-Mo. Hi/Lo

41/22

Share Price
As of 4/28/06

36

Return on Equity

17.0 %

P/E Ratio

31

No. of Employees

8,000

Industry Life Sciences Tools & Services
CURRENT
MARKET INFO

PPDI >

COMPANY WEB SITE >
Location Wilmington, N.C.
Phone 910 251-0081
*Trailing 12 months
Stock price data as of 4/28/06
DATA: Standard & Poor's Compustat

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Company Snapshot

Pharmaceutical Product Development, along with its subsidiaries, provides drug discovery and development services, post-approval expertise, and compound partnering programs as a contract research organization. It operates in two segments, Discovery Sciences and Development. The Discovery Sciences segment offers biomarker discovery and patient sample analysis, compound partnering programs, and preclinical services, including preclinical program design, specialized preclinical oncology and diabetes research models, toxicology consulting, laboratory services, and technical writing and regulatory submissions. The Development segment provides development services, such as preclinical programs, Phase I to Phase IV clinical development services, and laboratory services. The company also offers post-approval support services, such as product launch services, patient compliance programs, disease registry programs, medical information, product safety and pharmacovigilance, Phase IV monitored studies, and prescription-to-over-the-counter programs. It serves pharmaceutical, biotechnology, medical device, and government organizations in the U.S., Europe, and Latin America. The company was founded in 1985 and has its headquarters in Wilmington, N.C.


Data provided by Capital IQ
 
Fredric N. Eshelman

Fredric N. Eshelman, 57

Chief Executive Officer


Total Compensation*

$ 2,464,968

Total Options Value*

$ 17,509,459

* Fiscal Year 2005

DEGREES HELD
Pharm. D


Executive Bio

Dr. Fredric Eshelman has been CEO of Pharmaceutical Product Development since July, 1990, and vice-chairman since July, 1993. Dr. Eshelman founded Pharmaceutical Product Development's predecessor and served as CEO until its sale to Pharmaceutical Product Development in 1989. Dr. Eshelman served as senior vice-president, development, of Glaxo Inc., a subsidiary of Glaxo Holdings. Dr. Eshelman has been a director of Pharmaceutical Product Development since July, 1990. He served as a director of Glaxo Inc. from 1989 to 1990 before rejoining Pharmaceutical Product Development. Dr. Eshelman served as a Director of Syrrx.


Management Team

Key Executives

Fredric N. Eshelman; Linda Baddour; Paul Covington; Fred Davenport; Bill Richardson; Colin Shannon

Board Directors

Ernest Mario; Fredric N. Eshelman; John A. McNeill; Stuart F. Bondurant; Frederick Frank; Catherine M. Klema; Terry Magnuson; Marye Anne Fox; David L. Grange


Executive Data provided by Capital IQ