PDI,
Inc. Comments on Status of a Substantial Contract Sales
Program
SADDLE
RIVER, N.J.
(March
21, 2007) - PDI, Inc. (NASDAQ:
PDII),
a
provider of commercialization services to the biopharmaceutical industry, today
announced that a large pharmaceutical company customer has given notification
of
their intention not to renew their contract sales engagement with PDI when
it
expires on May 12, 2007. The contract, which was for a term of one-year,
represented approximately $35 million in annual revenue. PDI had expected this
contract sales engagement to be extended through the end of 2007.
Michael
Marquard, PDI’s CEO, stated, “This new development is disappointing and
underscores the importance of our strategy, which focuses on diversifying our
revenue stream. We are committed to our strategic plan and believe that its
implementation will provide added stability to our business. We are currently
engaged in discussions with other large pharmaceutical companies for fee for
service contracts, while continuing to pursue relationships with emerging
pharmaceutical companies and exploring potential acquisition opportunities.”
PDI
had
previously announced that it was entering 2007 with an annualized operating
cash
burn rate of approximately $10 million. As a result of the non-renewal, the
operating cash burn rate is now estimated at approximately $15 million. This
amount does not take into account the benefit of potential incremental cash
flow
from any new business opportunities.
About
PDI
PDI
provides commercialization services for established and emerging
biopharmaceutical companies. The Company is dedicated to maximizing the return
on investment for its clients by providing strategic flexibility; sales,
marketing and commercialization expertise; and a philosophy of
performance.
PDI
operates in two areas, Sales Services and Marketing Services. Our Sales 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. Our Marketing Services include marketing research
and
consulting services through TVG in Dresher, PA., and medical communications
services through Pharmakon in Schaumburg, IL. In addition, PDI is a high-quality
provider of ACCME-accredited continuing medical education through Vital Issues
in Medicine (VIM®), located in Dresher, PA. 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. Recognized as an industry pioneer, PDI remains
committed to continuous innovation and to retaining the industry's
highest-quality employees. For more information, please 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,
the
termination of or material reduction in the size of any of our customer
contracts, the loss by our or our customers’ intellectual property rights, our
ability or inability to secure new business to offset the recent loss of
customer contracts and the terms of any replacement business we secure, changes
in our operating expenses, 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 litigation, PDI's ability to implement its current
and future business plans, 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, 2006, and PDI's subsequently filed quarterly reports on Form 10-Q and
current reports on Form 8-K. 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.
PDI,
Inc. CONTACTS:
Jeff
Smith, Chief Financial Officer
(201)
258-8451
JESmith@pdi-inc.com
www.pdi-inc.com
or
INVESTOR
CONTACTS:
Lippert/Heilshorn
& Associates, Inc.
Kim
Sutton Golodetz (kgolodetz@lhai.com)
(212)
838-3777
Bruce
Voss (bvoss@lhai.com)
(310)
691-7100
SOURCE:
PDI, Inc.