For
more information contact:
Stephen
P. Cotugno
Executive
Vice President-Corporate Development
PDI,
Inc.
201.574.8617
PDI,
Inc. Announces Termination of AstraZeneca
Fee-for-Service
Contract Sales Programs
Saddle
River, New Jersey (February 28, 2006). PDI, Inc. (NASDAQ: PDII) a diversified
sales and marketing services provider to the biopharmaceutical industry,
announced today that it has been notified by AstraZeneca that its fee for
service agreements will be terminated effective April 30, 2006. The termination
affects approximately 800 field representatives. The revenue impact is projected
to be approximately $65 to $70 million in 2006.
Michael
Hickey, Vice President of Sales for
AstraZeneca US stated,“We
appreciate the efforts the PDI selling teams have made over the course of
our
working relationship and thank them for their service.”
Steven
K.
Budd, PDI’s President stated, “We are disappointed by AstraZeneca’s decision. We
have worked with AstraZeneca for over twelve years and look forward to creating
future business opportunities with them. We are vigorously exploring potential
opportunities to re-deploy these high performing sales teams.”
Larry
Ellberger, PDI’s interim CEO stated, “This termination will have a significant
financial impact in 2006. It reinforces our commitment to diversify our revenue
and client base, particularly in the emerging pharma segment of the industry,
while exiting unprofitable activities and reducing our overhead cost
structure.”
In
light
of this development, PDI is canceling its conference call scheduled for
Thursday, March 2, 2006. PDI will release its 2005 year end financial results
after the market close on Wednesday, March 1, 2006.
About
PDI
PDI,
Inc.
(NASDAQ: PDII) is a diversified sales and marketing services provider to
the
biopharmaceutical industry. PDI’s comprehensive set of outsourced sales and
marketing solutions is designed to increase its clients’ strategic flexibility
and enhance their efficiency and profitability. Headquartered in Saddle River,
New Jersey, PDI also has offices in Pennsylvania and Illinois.
PDI’s
sales and marketing services include our Performance Sales Teams™, which are
dedicated teams for specific clients; and Select Access™, our targeted sales
solution that leverages an existing infrastructure; marketing research and
consulting; and medical education and communications. PDI’s experience extends
across multiple therapeutic categories and includes office and hospital-based
initiatives.
PDI’s
commitment is to deliver innovative solutions, unparalleled execution and
superior results for its clients. Through strategic partnership and
client-driven innovation, PDI maintains some of the longest standing sales
and
marketing relationships in the industry. Recognized as an industry pioneer,
PDI
remains committed to continued innovation.
For
more
information, visit the Company’s website at www.pdi-inc.com.
Forward-Looking
Statements
This
press release contains forward-looking statements regarding future events
and
financial performance. These statements involve a number of risks and
uncertainties and are based on numerous assumptions involving judgments with
respect to future economic, competitive and market conditions and future
business decisions, all of which are difficult or impossible to predict
accurately and many of which are beyond PDI's control. Some of the important
factors that could cause actual results to differ materially from those
indicated by the forward-looking statements are general economic conditions,
changes in our operating expenses, adverse patent rulings, FDA, legal or
accounting developments, competitive pressures, failure to meet performance
benchmarks in significant contracts, changes in customer and market requirements
and standards, the impact of any stock repurchase programs, the adequacy
of the
reserves PDI has taken, the financial viability of certain companies whose
debt
and equity securities we hold, the outcome of certain litigations, PDI's
ability
to implement its current business plans, the termination of or material
reduction in the size of any of our customer contracts, and the risk factors
detailed from time to time in PDI's periodic filings with the Securities
and
Exchange Commission, including without limitation, PDI's Annual Report on
Form
10-K for the year ended December 31, 2004, and PDI's periodic reports on
Form
10-Q and current reports on Form 8-K filed with the Securities and Exchange
Commission since January 1, 2005. The forward looking-statements in this
press
release are based upon management's reasonable belief as of the date hereof.
PDI
undertakes no obligation to revise or update publicly any forward-looking
statements for any reason.