WILMINGTON, NC — Fred Eshelman picked a good time to sell nearly 10 percent of the stock he holds in the company he founded 20 years ago and still runs — Pharmaceutical Product Development.
Buoyed by recent good earnings reports, a series of new contracts and upgrades in analyst ratings, including another on Friday, PPD stock (Nasdaq: PPDI) hit a 52-week high on Friday of $60.72. That’s nearly double it’s 32-week low of $32.45.
Eshelman, who makes $1.25 million a year in salary, was not the only executive cashing in, either. President Fred Davenport, Executive Vice President Colin Shannon, General Counsel Judd Hartman and Director Ernest Mario also sold stock recently. (For a detailed list, see: finance.yahoo.com/q/it?s=PPDI )
Banc of America Securities raised its rating of PPDI stock to “neutral” from “sell”. Only July 14, analysts firms Robert W. Baird, Friedman Billings and Raymond James all raised the stock to “out perform” from “market perform”.
PPD announced after the markets closed Friday that Eshelman had sold some 400,000 shares. He still owns nearly 5 million shares and remains one of the pharmaceutical development and services firm’s largest stockholders — some 8.6 percent, according to the company.
The good news has come in abundance recently for PPD. It was awarded a $245 million HIV contract by the federal government and recently sold drug development rights to a diabetes drug to a Japanese firm for $15 million up front and milestone, business development and royalty payments later. PPD also announced a major services deal in the spring with Merck.
Only July 13, PPD raised its third quarter earnings estimates to 67-69 cents from 43-45 cents. The firm also raised fourth-quarter estimates to 56-58 cents from 49-51 cents.
In its quarterly financial report released that day, PPD also said net income for the quarter had soared more than 20 percent from the same period in 2004 to $23.7 million.
“PPD delivered another strong performance in the core business this quarter with record new business wins and development segment growth of 23 percent,” Eshelman said at the time. “Our performance for the quarter underscores our commitment to remaining client-focused and operationally disciplined to drive value across multiple fronts.”
Eshelman launched PPD as what the company describes “a one-person consulting firm.” He also at one time held executive positions at Glaxo.
in 1985. His career has included positions as senior vice president of development and vice president of clinical operations for the former Glaxo, Inc., as well as various roles in drug development with other pharmaceutical companies.
PPD, which was launched in 1985, operates offices in more than 28 countries and has some 7,400 employees.
PPD: www.ppdi.com
