SOURCE: StockCall


November 12, 2010 08:29 ET

Opinions on Covance and Pharmaceutical Product Development -- Med Labs Downsize in Response to Reduced Development Spending

JOHANNESBURG, SOUTH AFRICA--(Marketwire - November 12, 2010) - offers investors comprehensive research on the medical laboratories & research industry and has completed analytical research on Covance Inc. (NYSE: CVD) and Pharmaceutical Product Development Inc. (NASDAQ: PPDI). Register with us today at to have free access to these researches.

Poor third quarter revenues for the medical research industry appear to reflect the overall global trend of reduced drug development spending. The decline in development spending has already manifested itself in short-term losses and likely won't bode well for the long-term either. is an online platform where investors doing their due-diligence on the medical laboratories & research industry can have easy and free access to our analyst research and opinions on Covance Inc. and Pharmaceutical Product Development Inc.; all investors need to do is register for a complimentary membership at

Many research laboratories in the industry that saw down revenues for the quarter have already started to take action, an indication that they don't believe the losses of the last few months are not an aberration. Facilities and staffs are beginning to be downsized as cost cutting efforts. Register now at to have free access to our reports on the medical laboratories & research industry.

Capital investments are also being shifted towards drugs already in the late stages of development. By shifting more money to drugs in later development stages, research laboratories are hoping that they can get drugs to market faster and thus they can try to offset some of the short-term losses they have incurred. Visit to see how companies in this industry have grown over the past years and how they are expected to perform in the future.

Overall, the industry as a whole is scrambling to generate revenues and cut costs to offset the recent waves of losses. The measures being taken appear completely aimed at the short-term, raising concerns amongst many investors regarding long-term revenues.

Earnings for the industry were quite mixed with Covance Inc. posting a loss of $30.9 million as a result of delays and cancellations of late stage clinical trials. On the other hand, Pharmaceutical Product Development Inc. saw diluted earnings per share of $0.32 on net revenue of $365.4 million. Investors looking for free research on Covance Inc. and Pharmaceutical Product Development Inc. are welcome to sign up at or

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