¶ … PDI's financial condition.
Review relevant financial information.
Like most companies providing solutions to the biopharma industry, PDI has felt some of the negative effects of what is happening throughout the industry.
[PDI's Finances]
PDI is a commercialization partner providing solutions to the biopharma and medical devices and diagnostics industries. The industry is very volatile right now and the need for contract sales has been diminished. This was a large portion of PDI's business. This coupled with the slow down of blockbuster drugs by the FDA dampened PDI's earnings potential. Some of the risk sharing deals that PDI implemented for Evista and Lotrel also did not produce the results they had hoped for.
When we examine the company's finances, we find that they are still a healthy organ1zation. Analysts are rating the company as a hold. During the 2nd Quarter, PDI's net revenue was $143.9 million, an increase of 89.9%. Their balance sheet demonstrates total assets of $302.67 million and total liabilities of $151.74, which identifies some stability. The operating margin ratio was 1.82 with a net profit ratio of.91. Today, PDI is consolidating some of its locations, has reduced their headcount and is restructuring to insure profitability in the 4th Quarter and in 2003.
Although the company has suffered some financial cutbacks from contract losses, the company is paving the way for a new structure that will lead to financial health. PDI's key ratio indicators show earnings per share at $0.45, dividends per share at $0.00 and P/E ratio of $-3.61. PDI must once again strengthen its position in the industry by capitalizing on its infrastructure to offer comprehensive solutions and eventually acquire and own its own products. By implementing cost cutting and eventually transferring from being a service organization to a product driven company will allow PDI to return to profitability.
In an industry that is facing hardship across the board, PDI is taking steps to make the hard climb back to being a profit driven organization for its stakeholders. PDI will be announcing its 3rd Quarter results in mid-November.
Information Sources
The following sources were used for financial information on PDI. http://www.pdi-inc.com.Investor Relations. http://www.hoovers.com
Annual Report
