PPD’s Q2 project cancellations just shy of “unprecedented” Q1 levels

By Gareth Macdonald

- Last updated on GMT

Related tags: Contract research organisation, Contract research organization

PPD's woes have continued in the second quarter with revenue from its development segment down nearly 11 per cent to $330.2m (€232.5m).

Contract cancellations for the period were $212.9m, just shy of the “unprecedented” $215m worth of cancelled projects PPD reported at its last financial presentation in April.

One area of success was the firm’s discovery sciences operations, which saw revenue double to around $800,000 largely due to royalties from the sale of Priligy​ (dapoxetine) in Europe by Janssen-Cilag.

Also on the positive side for PPD, the sale of its Piedmont Research Center in April brought in just over $19m, equivalent to $0.16 per share after tax.

Overall however, Q2 was difficult for the US contract research organisation (CRO) compared with last year. Operating income from continuing operations was $38.6m, or 33 cents per share, down 20 per cent on the equivalent period in 2008.

Net revenue for the period was also down, falling around 12 per cent to $355.2m, although this was ahead of the $334.3m consensus estimate of analysts polled by Thomson Reuters​.

PPD's CEO, David Grange, was upbeat about the firm’s performance explaining that “we remain very optimistic about the long-term prospects for the CRO industry as a whole [and] continue to believe we are particularly well positioned​.”

This optimism was echoed by executive chairman Fred Eshelman who said: "With the start of Priligy royalties and the advancement of the development programs for alogliptin and our dermatology portfolio, we remain confident that our compound partnering efforts will generate long-term, sustainable growth​."

PPD is due to hold a live conference call later today to discuss its latest results.

Related news

Show more

Related products

show more

How clinical trial software can optimize trials

How clinical trial software can optimize trials

Formedix | 09-Jun-2021 | Technical / White Paper

This article explains the different types of clinical trial software available, and how it can be used to optimize the end to end clinical trials design...

Adapting supply chains to new ways of working

Adapting supply chains to new ways of working

World Courier | 01-Jun-2021 | Technical / White Paper

COVID-19 has changed the way we operate. We have adapted our supply chain solutions to meet our clients’ requirements while following World Courier standard...

What are the building blocks of DCTs?

What are the building blocks of DCTs?

Medable | 26-Apr-2021 | Technical / White Paper

How to create a seamless experience across eConsent, eCOA and more.

Over the past year, tremendous progress was made toward digitizing and...

How a clinical metadata repository helps with data

How a clinical metadata repository helps with data

Formedix | 22-Mar-2021 | Technical / White Paper

This article covers the various ways a clinical metadata repository helps with data quality, and in turn, with data quality in the clinical trials process....

Related suppliers

Follow us

Products

View more

Webinars