Shares in Pharmaceutical Product Development fell 11.6 percent Wednesday after the company cut its earnings forecast for 2007.
PPD (NASDAQ; PPDI) reported earnings of 36 cents per share for the second quarter after the markets closed on Tuesday. That meant earnings expectations from financial analysts polled byThomson First Call.
However, PPD cut its earnings forecast for 2007, based in part for costs to develop a proposed cholesterol drug. PPD also reduced its revenue forecast, citing current business conditions.
PPD reduced its revenue guidance for 2007 to $1.29 billion to $1.34 billion from announced guidance in December of $1.34 billion to $1.39 billion.
The company also cut earnings to between $1.35 and $1.39 per share from $1.46 to $1.54 per share.
By Wednesday’s close, PPD stock fell 11.6 percent to close at $33.98.
For the second quarter ending June 30, PPDI reported revenues of $350 million, up 13 percent over the same quarter in 2006. Earnings were $28.9 million, or 36 cents per share, up from $25.5 million a year ago.