NEWS21 July 2010

PDI to close TVG healthcare market research business

Financials North America

US— Healthcare marketing services firm PDI is pulling out of the market research business, and plans to close down its TVG Marketing Research & Consulting unit by the end of August.

A “limited group” of TVG management are currently in talks with PDI about buying the TVG brand and continuing to trade on an independent basis.

PDI said that “there would be no change in the financial impact to the company or timing of its exit of the TVG business if this action is successful”.

In a statement PDI CEO Nancy Lurker (pictured) said: “Changes in the healthcare industry, including various mergers and acquisitions as well as sweeping healthcare reform, have resulted in a significant decrease in demand for market research. Thus, while the decision to exit our TVG unit was a very difficult one, it was necessary to help ensure the long-term health of our business and is consistent with our stated strategy to focus chiefly on the growth of our core, outsourced promotional services business.”

The firm, which offers a range of outsourced marketing and communications services, said that the decision to exit the business would cost around $2.3m in severance payments, lease termination and other related costs.

A PDI spokeswoman would not disclose information about the number off staff affected by the decision to exit the business, or which members of the TVG management it is in discussions with.