Wilmington-based drug-research company PPD has named a Pfizer executive to be its new CEO and chairman.

David Simmons takes over as CEO June 4, the company announced Wednesday. Simmons spent 15 years at Pfizer and was most recently president and general manager of the company's emerging markets and established products business units, which represent about $18.5 billion of Pfizer's annual revenue.

He has a degree in applied mathematics and industrial management from Carnegie-Mellon University.

"This is a remarkable opportunity to join and lead a world-class pharmaceutical services organization through its next phase of prosperity and expansion," Simmons said in a statement.

In December, PPD was acquired and taken private by two private equity firms, The Carlyle Group and Hellman & Friedman, for $3.9 billion.

Furiex Pharmaceuticals, which saw its stock drop 23 pertcent in a single day last week after a drug it is developing with a partner failed to win U.S. regulatory approval, reported a narrower net loss in the first quarter.

The Morrisville company reported Thursday a loss of $9.8 million, or 98 cents per share, compared to $14.4 million, or $1.45 per share, in the first quarter of 2011.

Revenue from royalties totaled $2.6 million, compared to $400,000 in the first quarter of 2011.

The company's research and development expenditures declined from $12.9 million to $9.4 million. Furiex attributed the decline to completion of Phase 2 trials for its drug candidates, JNJ-Q2 and MuDelta.

MuDelta is being developed to treat irritable bowel syndrome. JNJ-Q2 has been studied as both a treatment for acute skin infections and for bacterial pneumonia.

Raymond H. Hill, CEO of the Wilmington-based drug-research company PPD, has resigned.

Hill's resignation took effect Monday, company spokesman Ned Glascock said.

Hill took over as CEO Sept. 16. His resignation came exactly a week after PPD was acquired by two private equity firms, The Carlyle Group and Hellman & Friedman, for $3.9 billion.

"Our new board of directors and our entire team want to thank him for his leadership and his contributions during this transition period of going from a public company to a private company," Glascock said.

Glascock said the board would hire a new CEO in the near future.

In the interim, PPD will be led by a four-person executive committee that includes the company's COO, CFO, chief medical officer and general counsel.

PPD, which earlier this month agreed to be bought by two private equity firms, has entered into a confidentiality agreement with another suitor, the company wrote in a regulatory filing today.

PPD has until the end of the day on Nov. 1 to solicit rival bids.

As of Thursday, the company that entered into the confidentiality agreement had not submitted a formal acquisition proposal.

The Carlyle Group and Hellman & Friedman are paying $33.25 per share for Wilmington-based PPD, a 30 percent premium over where the company's shares closed on the last day of trading before the deal was announced.

PPD's board has instructed Morgan Stanley to conduct a "go-show" process during which the investment bank contacted 22 parties to see if they were interested in making a superior offer to buy the company.
 

A local pharmaceutical contractor is on a hiring binge in the Triangle and nationwide to staff up for new contracts.

Wilmington-based PPD, with offices in Morrisville, is looking to fill 111 openings statewide and 575 company-wide.

PPD is one of the nation's largest drug research organizations that provides services to pharmaceutical companies and employs 11,000 people worldwide. The company, which employs about 1,400 in the Triangle, is in the process of being acquired by two private equity firms.

The company is holding an all-day job fair for nurses and pharmacists on Oct. 27 at 5150 McCrimmon Parkway, Suite 411, Morrisville.

PPD, one of the Triangle's largest drug-research companies, announced this morning that is being acquired by affiliates of two private equity firms, The Carlyle Group and Hellman & Friedman, for $3.9 billion.

PPD is based in Wilmington but has about 1,400 workers in the Triangle. Rumors have been swirling for months that PPD was on the market and that The Carlyle Group was among the frontrunners.

Under the terms of the deal, The Carlyle Group and Hellman & Friedman are acquiring the outstanding shares of PPD for $33.25 per share. That's a 30 percent premium on where the shares closed Friday.

PPD was founded 25 years ago by Fred Eshelman. Eshelman had been running the company since former CEO David Grange retired in May.

Shares of PPD, one of the Triangle's largest drug-research companies, fell as much as 9.9 percent this morning after the company appointed a new CEO.

PPD's board of directors announced today that they named Raymond H. Hill as CEO and gave him a spot on the board.

PPD's founder and executive chairman Fred Eshelman has been managing the company since former CEO David Grange retired in May.

While rumors persist about drug researcher PPD’s possible takeover by a private equity group, an analyst report this week suggests the company has room to expand as its clients increase their research and development funding, staff writer Tori Stilwell reports.

More of PPD's clients plan to boost spending on the clinical part of drug development, the company's main business, according to Garen Sarafian, an analyst with Citigroup Global Markets who follows the company.

“That naturally favors PPDI,” Sarafian said, referring to the company’s stock ticker. He also cited the company’s “lean” cost structure and strong leadership as an explanation for why he started coverage of the company with a “buy” rating.

Several media outlets are reporting that PPD, on the Triangle's largest drug-research companies, is talking about a sale to the Carlyle Group.

Bloomberg News, citing five anonymous sources, is reporting that Carlyle has edged out other private equity groups, including the Blackstone Group, that either bid or expressed interest in the company.

PPD, one of the Triangle's largest drug-research companies, reported that its quarterly profit more than doubled, bolstered by stronger sales to pharmaceutical customers.

The Wilmington-based business, which employs about 1,400 people in the Triangle, helps drug companies conduct clinical trials on experimental drugs and provides other services.

The strong results followed rumors earlier this month that PPD officials were considering a sale. Founder and executive chairman Fred Eshelman said at the time that PPD doesn't comment on speculation, but that management is reviewing its "long-term plan and our capital structure to see if there are any actions" that would increase shareholder value.

PPD has hired a financial advisor to help with the review, "including advising us on potential ways to unlock value for shareholders," Eshelman said on a conference call with Wall Street analysts today. The review "does not envision a combination with another CRO," he said, but declined further comment.