WILMINGTON, N.C., and TAMPA, Fla., Feb. 2 /PRNewswire-FirstCall/ -- PPD, Inc. and Accentia, Inc. today announced PPD has made a $5 million equity investment in Accentia. Under the terms of the agreements, PPD purchased shares of Accentia's Series E convertible preferred stock. In addition to the customary terms associated with investments of this nature, Accentia's Series E shares will pay a dividend based on a percentage of net sales of certain Accentia products.
Accentia is in the business of commercializing targeted therapeutics in patent-protected drug delivery technologies in the respiratory, oncology and critical care areas. A rapidly growing market, targeted therapeutics focus their action to specific cellular targets, reducing undesirable collateral damage while boosting efficacy. Accentia and its subsidiaries collectively provide vertically integrated capabilities that include pre-market research and outcomes analyses; marketing and selling branded pharmaceuticals by licensing or acquiring under-promoted products and late stage development compounds; and a proprietary bioreactor technology to perform contract production of custom-designed biologics, including vaccines.
"With interest in targeted therapeutics escalating, our investment in Accentia reflects our strategy of investing in companies that are developing leading edge therapies and technologies," said Fred Eshelman, chief executive officer of PPD. "It also complements our goal of seeking opportunities to increase potential for enhanced earnings."
In making the announcement, Frank O'Donnell, chairman and chief executive officer of Accentia, said, "The investment affirms our business model and strategy to position Accentia as a leader in targeted therapeutics, and we are very pleased to be aligned with a company of PPD's stature."
Accentia, Inc., a Hopkins Capital Group company, is a privately-held, vertically-integrated specialty biopharmaceutical company based in Tampa, Fla., that provides comprehensive biopharmaceutical services, including product commercialization, clinical manufacturing, contract sales and product distribution. For more information about Accentia, go to http://www.accentia.net/ .
As a leading global provider of discovery and development services and products for pharmaceutical, biotechnology and medical device companies, PPD applies innovative technologies, therapeutic expertise and a commitment to quality to help clients maximize the return on their R&D investments. With proven early discovery through post-market resources, the company also offers compound partnering opportunities. PPD has more than 5,700 professionals in 26 countries around the world. For more information on PPD, visit our Web site at http://www.ppdi.com/ .
Except for historical information, all of the statements, expectations and assumptions, including expectations and assumptions about the equity investment in Accentia, contained in this news release are forward-looking statements that involve a number of risks and uncertainties. Although PPD attempts to be accurate in making those forward-looking statements, it is possible that future circumstances might differ from the assumptions on which such statements are based. In addition, other important factors which could cause results to differ materially include the following: risks associated with investments, including impairments; economic conditions in the pharmaceutical, biotechnology and medical device industries; rapid technological advances that make the products and services of companies in which we invest less competitive; continued success in sales growth; the ability to attract and retain key personnel; and the other risk factors set forth from time to time in the SEC filings for PPD, copies of which are available free of charge upon request from the PPD investor relations department.
For Accentia For PPD
Frank O'Donnell Nancy Zeleniak
+813 864 2554 +919 462 4088
+910 772 7585
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