Exhibit 99.1
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Saddle River Executive Centre
1 Route 17 South
Saddle River, New Jersey 07458
Tel: 800.242.7494 Fax: 201.258.8400
www.pdi-inc.com
For more information contact:
Stephen P. Cotugno
Executive Vice President-Corporate Development News Release
PDI, Inc.
201.574.8617
PDI to Acquire the Assets of Pharmakon, L.L.C.
Medical education business complements PDI's current sales
and marketing service businesses
Saddle River, NJ-- (August 26, 2004) PDI, Inc. (NASDAQ: PDII), a premier
healthcare sales and marketing company, today announced that it has entered
into a definitive agreement to acquire substantially all of the assets of
Pharmakon, L.L.C., (Pharmakon) a healthcare communications company focused on
the marketing of ethical pharmaceutical and biotechnology products, located in
Schaumburg, Illinois.
Under the terms of the agreement, Pharmakon will receive approximately $30
million in cash upon closing of the transaction with the possibility of
earning up to an additional $10 million in cash based upon achievement of
certain annual profit targets by Pharmakon through December 2006. PDI expects
the transaction to add approximately $6 million in revenue and approximately
$0.05 in earnings per share for the remainder of 2004. The transaction, which
is expected to close shortly, is subject to customary closing conditions.
Due to the acquisition, PDI is increasing its 2004 earnings per share
estimates to $1.25 to $1.35 from $1.20 to $1.30.
Charles T. Saldarini, Vice Chairman and Chief Executive Officer of PDI stated,
"The acquisition of Pharmakon fits into our overall growth strategy which
includes acquisitions of sales and marketing companies serving the
pharmaceutical and medical devices and diagnostics industries. Pharmakon will
provide a strong base from which PDI can expand its share of the $2.8 billion
medical education market."
Steven K. Budd, President of PDI's Global Sales and Marketing Services Group
stated, "Pharmakon adds a focused, extremely well run medical education
company to our sales and marketing services group and fits our objective of
establishing PDI as a top tier provider of medical education services.
Pharmakon's services provide pharmaceutical companies cost effective access to
physicians, augmenting their existing sales and marketing activities.
Additionally, Pharmakon enables physicians to conveniently learn important and
relevant information about product and treatment options from thought leaders
and their peers in an interactive environment, which physicians prefer."
Steve Agnoff, Pharmakon's President and Chief Executive Officer stated,
"Joining forces with PDI benefits our clients and employees. PDI's reputation
for excellence and extensive client relationships within the pharmaceutical
industry only adds to Pharmakon's already impressive model going forward. We
anticipate that being a part of PDI, a recognized leader in the sales and
marketing services industry, will enable Pharmakon to continue to grow and
develop its leadership position in the medical education business."
Webcast Conference Call
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PDI will conduct a live webcast to discuss the Pharmakon acquisition on
Friday, August 27, 2004 at 10:00 am Eastern Time. The live webcast of the
event will be accessible through PDI's website, www.pdi-inc.com and will be
archived on the website for future on-demand replay. For those without
internet access, the call can be accessed by dialing 1-877-423-4030 within the
US and 1-706-634-1929 internationally and asking for the PDI-Pharmakon
Acquisition Call. The call will be archived for two weeks and can be accessed
by calling 1-800-642-1687 or 1-706-645-9291 and entering the conference ID
number 9607049.
About PDI
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PDI, a premier healthcare sales and marketing company, provides strategic
alternatives to the portfolio challenges of biopharmaceutical and medical
device and diagnostics manufacturers. Focusing on two core businesses, sales
and marketing services and product commercialization, PDI leverages its
expertise and commercial infrastructure to maximize profitable brand growth.
Manufacturers choose the relationship which best meets their strategic and
financial objectives, ranging from individual or bundled service agreements to
broader commercial partnerships.
For more information, visit PDI's website at www.pdi-inc.com.
About Pharmakon
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Pharmakon's emphasis is on the creation, design and implementation of
interactive peer persuasion programs. In the last five years, Pharmakon has
conducted over 20,000 peer persuasion programs with more than 250,000
participants. Pharmakon's peer programs can be designed as promotional,
continuing medical education or market research/advisory programs.
Each marketing program can be offered through a number of different venues
including: teleconferences, dinner meetings, "lunch and learns", and web
casts. Within each of its programs, Pharmakon offers a number of services
including strategic design, tactical execution, technology support, moderator
services and thought leader management.
The Company employs 14 full-time moderators that have experience with 200
different products in over 25 therapeutic categories. These moderators are
highly trained and are recognized experts in their fields. They come from a
broad range of relevant backgrounds and include pharmaceutical sales and
marketing, registered pharmacists, registered nurses, microbiologists and
other healthcare specialists. For more information, visit Pharmakon's website
at www.pharmakonllc.com.
Forward Looking Statement
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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,
failure to successfully integrate businesses acquired by us, changes in our
operating expenses, adverse patent rulings, FDA or legal developments,
competitive pressures, failure to meet performance benchmarks in significant
contracts, changes in customer and market requirements and standards, 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, 2003, and PDI's periodic
reports on Forms 10-Q and 8-K filed with the Securities and Exchange
Commission since January 1, 2004. 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.