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Tough Conditions for TVG
PDI, which provides commercialization services to the biopharmaceutical industry, has announced mixed results for the third quarter. The Marketing Services segment, which includes market research and consulting arm TVG, has seen a decline in revenue.
Overall net revenue for the third quarter was up 2% on the year to $24.5m, but with a gulf between the firm's two main divisions - Sales Services segment revenue was up 18% to $3.1m while the Marketing Services segment - which includes TVG and medical communications unit Pharmakon - was down $2.6m.
The Group's gross profit declined sharply due to spend on the rollout of a new segment, Product Commercialization. Gross profit for Marketing Services was lower and the segment's operating loss grew by $1.1m.
Chairman John P. Dugan said Marketing Services revenue was down for the quarter 'due to a continued overall slow down in spending for these types of services by pharmaceutical companies and cut backs and postponements of committed projects by two large customers of our Pharmakon business unit.' However, he noted: 'In the third quarter, we launched a broadening of service capabilities at TVG, our market research and consulting business, and shortly thereafter won the largest single project this business unit has ever received ($1.0 million value).'
With approximately $100m in cash and short term investments and no commercial debt, plus 'excellent progress in our search for a new CEO', Duggan remains buoyant about the firm's prospects despite the downturn.
Web site: www.pdi-inc.com .
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