AstraZeneca has terminated its service agreement with PDI Inc. a diversified sales and marketing services provider to the biopharmaceutical industry, effective April 30, 2006. The termination affects approximately 800 field representatives and the revenue impact is projected to be approximately $65 to $70 million in 2006.
Larry Ellberger, PDI's interim CEO stated, "This termination will have a significant financial impact in 2006. It reinforces our commitment to diversify our revenue and client base, particularly in the emerging pharma segment of the industry, while exiting unprofitable activities and reducing our overhead cost structure."
In light of this development, PDI is cancelling its conference call scheduled for Thursday, March 2, 2006. PDI will release its 2005 year end financial results after the market close on Wednesday, March 1, 2006.