Pharmaceutical Product Development 2Q Profit Jumps 75 Percent, Tops Street View

WILMINGTON, Del. -- Pharmaceutical Product Development Inc. said Monday its second-quarter profit jumped 75 percent as demand for drug discover and development services grew.

Results easily topped Wall Street's consensus expectations, sending shares of the company sharply higher in the aftermarket session.

The company, which offers a range of laboratory services and support services, said it earned $36.4 million, or 31 cents per share, compared with earnings of $20.8 million, or 18 cents per share, last year. Revenue jumped 26 percent to $309 million from $245.1 million.

Analysts polled by Thomson Financial expected more modest earnings of 29 cents a share on revenue of $274.5 million.

The company saw its largest boost in revenue come from development services, with its biggest clients being biotechnology and pharmaceutical companies. That segment saw a 24 percent increase in business, bringing in $278.9 million.

In comparing the second-quarter figures, the company revised last year's figures to account for stock option expensing.

"We believe our second quarter operating results demonstrate continued strength in the market as well as PPD's ability to perform well across the continuum of global drug development markets and service segments," said Fred Eshelman, chief executive.

Shares of Pharmaceutical Product Development added $2.49, or 6.9 percent, to $38.45 in Tuesday's trading on the Nasdaq.