15 Jun. 2010
WILMINGTON, N.C., and MORRISVILLE, N.C. (June 15, 2010) - PPD, Inc. (Nasdaq: PPDI) and Furiex Pharmaceuticals, Inc. (Nasdaq: FURX) announced today the successful completion of the spin-off of Furiex. As previously announced, PPD received a private letter ruling from the Internal Revenue Service that the dividend of common stock of Furiex to PPD shareholders qualifies as a tax-free distribution for U.S. income tax purposes.
On June 14, 2010, shareholders of record of PPD as of June 1, 2010, received a pro rata dividend of one share of Furiex common stock for every 12 shares of PPD common stock they held. Fractional shares were paid in cash.
PPD and Furiex now operate as two independent companies. PPD has no ownership of Furiex. PPD will continue as a leading global contract research organization, and Furiex will advance the former compound partnering business of PPD.
To facilitate the advancement of the development programs, PPD transferred $100.0 million in cash to Furiex prior to the spin-off. In addition, Furiex has assumed current accounts receivable and payable associated with the compound partnering business. As previously announced, Takeda Pharmaceutical Company Limited recently received pricing approval for NESINA® (alogliptin) in Japan, triggering a $7.5 million milestone payment to PPD. PPD will recognize this milestone payment as revenue in the quarter ending June 30, 2010, but PPD is transferring the account receivable for this payment to Furiex. The accounts receivable Furiex is assuming from PPD consist primarily of the $7.5 million Takeda milestone payment. The assumed accounts payable, which are predominantly to third-party vendors, should substantially offset the assumed accounts receivable, resulting in approximately $100.0 million of net working capital as of June 14, 2010.
PPD common stock will continue to trade on the NASDAQ Global Select Market under its current ticker symbol, PPDI. Furiex common stock begins trading today on a "regular way" basis on the NASDAQ Global Market under the ticker symbol FURX.
About Furiex Pharmaceuticals
Furiex Pharmaceuticals is a drug development collaboration company using innovative clinical development design to accelerate and increase value of partnered drug programs by advancing them in a cost-effective, efficient manner. Development programs are designed and driven by a core team with extensive drug development experience. The company partners with pharmaceutical and biotechnology companies and has a strong, diversified product portfolio and pipeline with multiple therapeutic candidates including late-stage assets and one product on the market. The company is well capitalized with a strong cash position and committed to sustainable growth, value creation and long-term profitability. For more information, visit www.furiex.com.