PPD, one of the Triangle's largest drug-research companies, reported stronger first-quarter results.

The company is based in Wilmington, but employs about 1,400 people in the Triangle, and contributes to this region's reputation as a hub for so-called contract research organizations.

After the close of regular stock-market trading, PPD reported revenue of $383.2 million, up 10.5 percent from the first quarter last year.

Income from operations rose to $52.4 million, up 90 percent.

PPD, a Wimington-based drug-research firm, reported stronger third-quarter results late Tuesday.

The company's revenue rose to $365.4 million, up 7 percent from the same period last year. Operating income of $56.8 million was a 10 percent improvement.

PPD, which celebrated its 25th anniversary this summer, has a large Triangle operation with about 1,400 local employees. The company conducts clinical trials for pharmaceutical companies developing experimental drugs, and provides other services.

Last summer, Fred Eshelman, the founder and top executive at PPD, handed the CEO reins to a former Army general so that he could spend more time reshaping the company's long-term strategy.

Late Tuesday, the Wilmington-based firm announced several major changes. For starters, PPD next year plans to spin off its drug-development division as a separate publicly traded company.

PPD, which employs about 1,400 in the Triangle and 10,000 worldwide, will keep its name and focus on the main business of providing contract research services for pharmaceutical companies. Most of the company's Triangle workers are involved in the contract research side.

The new company will work with other drug companies on new medicines, including a treatment for premature ejaculation that is already on sale in parts of Europe.

"We believe by separating this business from our core CRO business we can unlock the intrinsic value of both businesses," Eshelman said.

Here's a safe bet: PPD investors hope today is brighter than Wednesday.

Shares of the Wilmington drug-research company, which employs 1,800 in the Triangle, fell 15 percent Wednesday. The drop was triggered by weaker-than-expected quarterly results released late Tuesday, and a downgrade by an analyst with research firm Robert W. Baird.

The stock has lost more than half its value in the past year, as investors fret that a slump among PPD's pharmaceutical customers is hurting its business of testing new medicines, especially in North America.

One bit of good news: There aren't additional layoffs planned. PPD announced earlier this month it was cutting 270 jobs across the country, including fewer than 80 in Wilmington.

"We have an extremely talented global workforce, and there are no plans for additional reductions in force," David Grange, who took over as CEO on July 1, said on a conference call.

PPD shares fell $3.23 to close at $18.85 on Wednesday.