PDII, excerpts from a Morgan Stanley report
<<Professional Detailing (PDI) is a contract sales organization
(CSO) provider of comprehensive customized sales
solutions to the United States pharmaceutical industry. The
company provides project teams to help customers
accelerate the commercial acceptance and market
penetration of its drugs.
Key Investment Positives
Enhanced focus on sales and marketing within pharma
companies. The sales and marketing strategic focus has
attractive alternatives to internal expansion or traditional co-promotion
agreements.
Established reputations should drive continued market
share gains. PDI’s strong reputation for moving quickly
and efficiently, its flexible and customer-focused approach,
and its track record of product successes should enable PDI
to continue to increase share in the fast-growing CSO
market. PDI is the number two player, with roughly 22%
market share.
Strong financial track record of success. Since the
company’s IPO in May 1998, PDI has consistently
surpassed its growth targets as measured by total sales
representatives, total clients, and service offerings. This has
translated into revenues and earnings that have also
consistently beaten Street expectations.
Experienced management with significant ownership
position. Chairman and founder John Dugan and CEO
Chuck Saldarini have been with the company since its
inception and have provided the vision that has fueled the
company’s strong growth....
The sales and marketing strategic focus has
never been more important within the pharma companies for
two key reasons. First, in a managed care environment,
pharma companies have limited ability to raise drug prices,
and thus have focused on driving volumes to increase
revenues. Second, with the increase in therapeutic density
within the industry, pharma companies are placing increased
importance on big product launches...
CSO industry trends remain healthy. Pharma companies
are increasingly seeking to outsource sales and marketing
activities to enhance flexibility, transform fixed costs into
variable costs, and access external expertise and information
technology. The flexibility and control CSOs offer can be
attractive alternatives to internal expansion or traditional co-promotion
agreements. |
