Research performance eats away at PDI revenue and profit

PDI announced last month that it was pulling out of the market research business, and was in talks with the management of the research agency about a possible buyout.

During the second quarter of this year, revenue in PDI’s Marketing Services segment, which houses TVG and marketing agency Pharmakon, was down 18% to $3.2m from $3.9m, while gross profit fell to $1.4m from $1.8m. PDI blamed the fall on “a decrease in the number of projects in effect”.

Group-wide, PDI reported a 118% increase in revenue from $16.3m to $33.5m and operating loss was slashed to $0.8m from $4.7m.

In a statement accompanying the results, PDI CEO Nancy Lurker (pictured) reiterated the group’s intention to pull out of the TVG business. She said: “Our recent decision to exit the market research business currently conducted by TVG, by the end of the third quarter, fits with our strategy of focusing on promotional outsourced services to healthcare providers.”