(Source: Business Wire)
PPD, Inc. (Nasdaq: PPDI) today announced that its board of directors has amended the company's annual cash dividend policy to increase the annual dividend rate by 20 percent, from $0.50 to $0.60 per year, payable quarterly at a rate of $0.15 per share. The board of directors also declared a cash dividend for the second quarter of 2009 based on the new dividend rate. The record date for the second quarter dividend is June 15, 2009, and the payment date is June 29, 2009.
"Our board of directors, management team and employees are pleased to reward our shareholders with an increase in our cash dividend rate for the fourth consecutive year since adopting our policy in 2005," said Fred Eshelman, chief executive officer of PPD. "This increase in the annual dividend rate demonstrates our view of the long-term prospects of our business. We remain fully focused on executing on behalf of our clients and driving long-term value for PPD shareholders."
The annual cash dividend policy and the payment of future quarterly cash dividends under that policy are subject to the continuing determination by the board of directors that the policy remains in the best interests of the company's shareholders and in compliance with applicable laws and agreements.
PPD is a leading global contract research organization providing discovery, development and post-approval services as well as compound partnering programs. Our clients and partners include pharmaceutical, biotechnology, medical device, academic and government organizations. With offices in 38 countries and approximately 10,500 professionals worldwide, PPD applies innovative technologies, therapeutic expertise and a commitment to quality to help its clients and partners maximize returns on their R&D investments and accelerate the delivery of safe and effective therapeutics to patients. For more information, visit our Web site at http://www.ppdi.com.
Except for historical information, all of the statements, expectations and assumptions contained in this news release, including expectations and assumptions about company growth and the payment of future dividends under the annual dividend policy, are forward-looking statements that involve a number of risks and uncertainties. Although PPD attempts to be accurate in making these 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 that we may not continue our dividend policy; success in sales growth; loss of or delay in large contracts; increased cancellation rates; economic conditions and outsourcing trends in the pharmaceutical, biotechnology, medical device, academic and government industry segments; competition within the outsourcing industry; the ability to attract and retain key personnel; risks associated with and dependence on collaborative relationships; risks associated with the development and commercialization of drugs, including earnings dilution and obtaining regulatory approval; risks associated with acquisitions and investments, such as impairments; rapid technological advances that make our products and services less competitive; 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.
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