WILMINGTON, N.C. — Shares in pharmaceutical and research firm PPD declined 64 cents, or nearly 2 percent, Tuesday after the company revised its earnings forecast for the rest of 2006 on Monday.

Looking ahead to 2007, PPD (NASDAQ: PPDI) said it expected to increase net revenues by 19 percent to between $1.34 billion and $1.39 billion.

PPD also upped its 2006 forecast slightly from earlier guidance to between $1.145 billion and $1.150 billion.

The company projects capital spending of up to $110 million in 2007. Among that amount is $30 million to complete construction of its new headquarters in Wilmington.

“For 2007, we expect to see solid, steady growth in the core development business, and we plan to focus our efforts on disciplined execution throughout the coming year,” said Fred Eshelman, chief executive officer of PPD, in a statement.

PPD: www.ppdi.com