Earnings Call Excerpt
Pharmaceutical Product Development, Inc. (PPDI)
2009 Guidance Call
January 15, 2009 9:00 am ET
Executives
Dr. Fredric N. Eshelman - Vice Chairman and Chief Executive Officer
Daniel G. Darazsdi - Chief Financial Officer
William J. Sharbaugh - Chief Operating Officer
Analysts
John Kreger - William Blair & Company
Jon D. Wood - Banc of America Securities
Randall Stanicky - Goldman Sachs
David Windley - Jefferies & Co.
Steven Halper - Thomas Weisel Partners
Douglas Tsao - Barclays Capital
Greg Bolan - Wachovia Capital Markets
(Jake) - Raymond James
Sean Wieland - Piper Jaffray & Co.
Eric W. Coldwell - Robert W. Baird & Co., Inc.
Presentation
Operator
Welcome to the Pharmaceutical Product Development 2009 Guidance Call. (Operator Instructions). At this time, it is my pleasure to turn the conference over to the Vice Chairman and CEO, Dr. Fred Eshelman.
Dr. Fredric N. Eshelman
I will begin by saying that except for historical information, all statements, expectations, and assumptions discussed in today’s call including revenue and earnings guidance and compound partnering activities are forward-looking statement and involve a number of risks and uncertainties. Actually results might differ materially from those in the forward-looking statements. Information about the factors that cause actual results to vary is disclosed in the press release announcing our guidance and in the SEC filings for PPD, copies of which are available free of charge from our Investor Relations department.
Our net revenue forecast excludes reimbursed out-of-pockets. Although this non-GAAP financial measure is not superior to or a substitute for GAAP net revenue, we exclude reimbursed out-of-pockets from our forecasted net revenue because they are difficult to accurately forecast and are immaterial because they do not affect operating income, net income, or earnings per share. We also believe this non-GAAP measure is useful to investors because it more accurately reflects the net revenue that PPD will generate from it services and because it is useful in making period-to-period comparisons.
While 2008 was a challenging year in many respects, PPD closed the year with positive news including a listing on the NASDAQ 100 Index and announcements of lab expansions for GNP in Ireland and GCL in Singapore. The bullish news has continued with the closing of the Vaccine Lab and GCL deals with Merck which were announced on January 5th. Additionally, Takeda revealed the US regulatory review date for alogliptin, and last but certainly not least, we are excited about the prospects from Europe regarding dapoxetine.
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