SADDLE RIVER, N.J., Oct. 26 /PRNewswire-FirstCall/ -- PDI, Inc. (Nasdaq: PDII - News), a diversified sales and marketing services provider to the biopharmaceutical and medical devices and diagnostics industries, today announced that it expects to move into 2006 with approximately the same number of sales representatives with each of its two largest clients as it fielded in 2005.
The company also said it is in renewal discussions with its third largest client regarding its contract sales team for 2006. The size of that team will be reduced, resulting in a decrease in revenue to PDI totaling approximately $22 million to $24 million in 2006 versus 2005. The reduction in sales force size is not related to performance issues. Upon completion, the contract is expected to run from January 1, 2006 through December 31, 2006.
Steve Budd, President of PDI's Sales Services Group, said, "We are pleased that our performance has earned us the right to continue with these three important clients. Our clients value the flexibility we bring, enabling them to make adjustments to their field forces in reaction to changes in their portfolios. We look forward to continuing our relationships into 2006 and beyond."
PDI also announced that it has been awarded a new dedicated contract sales program with a biotechnology company. The agreement represents approximately $10 million to $11 million in revenue over a two year period beginning in January of 2006.
PDI also announced that its Select Access unit has been awarded a new engagement with a top ten pharmaceutical company. The program represents approximately $6 million to $7 million in revenue over a six-month period beginning in November of 2005.
Update on Securities Litigation
In addition, PDI today provided the following update with respect to the securities action entitled In re PDI Securities Litigation.
As disclosed on August 22, 2005, the United States District Court for the District of New Jersey dismissed the Second Consolidated and Amended Class Action Complaint in In re PDI Securities Litigation (Civil Action No.: 02-cv-0211-JLL) without prejudice to plaintiffs. On October 22, 2005, the plaintiffs filed a Third Consolidated and Amended Class Action Complaint.
The Company believes that the allegations in this purported securities class action are without merit and intends to file a motion to dismiss the action.
About PDI
PDI, Inc. (Nasdaq: PDII - News) is a diversified sales and marketing services provider to the biopharmaceutical and medical devices and diagnostics industries. PDI's comprehensive set of sales and marketing solutions is designed to increase its clients' strategic flexibility and enhance their efficiency and profitability. Headquartered in Saddle River, NJ, PDI also has offices in Pennsylvania and Illinois.
PDI's sales and marketing services include dedicated contract sales, Select Access(TM), our targeted sales solution that leverages an existing infrastructure, clinical sales teams; marketing research and consulting; and medical education and communications. The company'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 http://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, 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.
Source: PDI, Inc.
