PPDI - Conducts clinical trials and related services for big Pharma and biotech. My premise is aging baby boomers and friendlier FDA will lead to increasing number of clinical trials. This is happening already in biotech.
Stock fell sharply yesterday after quarterly report showed less new business authorizations than expected and some pricing pressure from two competitors.
However company reported 29% increase in earnings and 20% rise in revenues. company has consistently reported revenue growth of 20% plus and earnings of 25% plus. Company has almost no long term debt a healthy cash position and has made several acquisitions for cash including one yesterday. Company also is slowly assembling there own pipeline and has one compound just entering phase 111 trials with JNJ. Stock trading at 12.5X next years estimates. I have owned stock on and off for last 1.5 years and my sense from listening to conference calls is company is very well run. president and chairman have both bought large amount of stock in last two years at prices slightly higher than current. Conference call from yesterday on co. website. |
