SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(D) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): February 2, 2001
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PROFESSIONAL DETAILING, INC.
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(Exact name of Registrant as specified in
its charter)
DELAWARE 0-24249 22-2919486
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(State or other jurisdiction (Commission File (IRS Employer
of incorporation) Number) Identification No.)
10 Mountainview Road,
Upper Saddle River, NJ 07458
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(Address of principal executive (Zip Code)
office)
(201) 258-8450
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Registrant's telephone number, including area code:
N/A
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(Former name or former address, if changed since
last report)
Item 5. Other Events
On February 2, 2001 the Registrant issued the following press release:
"PDI Announces Termination of GlaxoSmithKline
Fee for Service Contract Sales Program
Upper Saddle River, New Jersey (Friday, February 2, 2001). Professional
Detailing, Inc. (Nasdaq: PDII) today announced that it received verbal notice
from GlaxoSmithKline that it intends to terminate its fee for service agreement
with PDI. Under the agreement, the termination would become effective 75-days
following PDI's receipt of written notice. Accordingly, PDI expects that this
product-detailing program will remain in place until the middle of April 2001.
PDI's LifeCycle Ventures contract with GlaxoSmithKline is not affected in any
manner.
"The decision to end our fee for service contract with PDI is not a function of
any performance related issue" stated Jim Daly, Vice President and General
Manager, Respiratory and Anti Infectives, GlaxoSmithKline, "and we continue to
maintain an excellent relationship with PDI through our relationship with its
LifeCycle Ventures unit."
If termination occurs as contemplated, PDI's projected 2001 consolidated revenue
would be reduced by approximately $45 million. Projected 2001 earnings per share
would be reduced by approximately $0.35 to $0.40. The contract cessation will
have a minimal effect on PDI's results for the first quarter of 2001.
Charles T. Saldarini, Vice Chairman and Chief Executive Officer stated, "We are
disappointed by GlaxoSmithKline's decision to exercise its right to terminate
our contract without cause. We have a longstanding relationship with them, but
clearly changes within the merged companies have triggered a reduction in the
use of traditional contract sales services. We will continue to concentrate on
maximizing our relationship with GlaxoSmithKline through the innovative types of
commercial partnering we executed through our LifeCycle Ventures unit and look
forward to exploring future business opportunities with GlaxoSmithKline."
Commenting further on the development, Saldarini added, "This decision
underscores the importance of the direction we are taking towards full scale
commercial partnering. Our decision to invest in the LifeCycle Ventures unit and
our early success in offering both extension services and launch services
positions us well for continued growth and long term shareholder value."
Company Background & Services
Professional Detailing, Inc. is a leading provider of customized sales and
marketing solutions to the pharmaceutical industry. The Company designs and
manages customized product detailing programs for some of the world's largest
pharmaceutical companies, managing some of the largest contract sales efforts in
the world.
The Company provides several principal services:
Dedicated Contract Sales Services, in which programs are customized to client
specifications;
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Syndicated Contract Sales Services, provided through the Company's ProtoCall
unit, enabling clients to tap into an existing, large-scale sales team for
specific detail positions and periods;
LifeCycle X-Tension Services; provides sales, marketing and distribution
services for companies facing portfolio optimization challenges;
LifeCycle Launch; provides commercial launch services for emerging and
biotechnology companies to independently launch new brands;
Medical Education and Communication Services, provided through the Company's TVG
unit, in which clients can access continuing medical education, Sales Force
Tactical Briefings(TM) and peer to peer promotion;
Marketing Research and Consulting Services, provided through the Company's TVG
unit, enabling clients to study qualitative and quantitative aspects of brand
performance on a pre-launch, launch and continuing basis;
This press release contains forward-looking statements involving risks and
uncertainties that may cause actual results to differ materially from
those indicated due to a number of factors, including the actual effect of
GlaxoSmithKline's potential contract termination on the Company's
financial results. The Company's plans and objectives are based on
assumptions involving judgments with respect to future economic,
competitive, regulatory and market conditions and future business
decisions, all of which are difficult or impossible to predict accurately
and many of which are beyond the control of the Company. Therefore, there
can be no assurance that the forward-looking statement will prove to be
accurate. The Company's documents filed with the SEC identify important
factors that may cause the actual results to differ materially from those
indicated by the forward-looking statements.
PDI will be holding a conference call on Friday, February 2, 2001 at 11:00 AM
Domestic call number: (800) 742-0826
International call number: (706) 645-9163
Refer to conference name: Professional Detailing, Inc.
Conference leader: Stephen P. Cotugno
Conference ID: #576270
Please call 5 minutes prior to scheduled conference call start time.
A replay of the call is available until midnight Friday, February 9, 2001 by
dialing (800) 642-1687. International callers should dial (706) 645-9291.
Please refer to Professional Detailing, Inc., Conference ID #576270.
If you have any questions, please feel free to contact Stephen P. Cotugno of
PDI at (201) 574-8617."
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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
PROFESSIONAL DETAILING, INC.
By: /s/Charles T. Saldarini
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Charles T. Saldarini, Vice Chairman
and Chief Executive Officer
Date: February 2, 2001
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