| Professional Detailing, Inc. | |||
| Ticker: | PDII | 599 MacArthur Boulevard | |
| Exchange: | NASDAQ-National Market | Mahwah, NJ 07430 | |
| Industry: | Service (SIC Code 7389) | (201) 818-8450 | |
| Type of Shares: | Common Shares | Filing Date: | 2/13/98 | |
| U.S. Shares: | 2,800,000 | Offer Date: | 5/19/98 | |
| Non-U.S. Shares: | 0 | Filing Range: | $14.00 - $16.00 | |
| Primary Shares: | 2,800,000 | Offer Price: | $16.00 | |
| Secondary Shares: | 0 | Gross Spread: | $1.12 | |
| Offering Amount: | $42,000,000 | Selling: | $0.68 | |
| Expenses: | $0 | Reallowance: | $0.10 | |
| Shares Out After: | - |
| Manager | Tier | Phone |
| Morgan Stanley Dean Witter Discover & Co. | Lead Manager | (212) 761-5900 |
| Hambrecht & Quist Incorporated | Co-manager | (415) 439-3626 |
| William Blair & Company | Co-manager | (312) 364-8990 |
| Issuer's Law Firm: | Morse, Zelnick, Rose & Lander, LLP |
| Bank's Law Firm: | Ropes & Gray |
| Auditor: | Coopers & Lybrand |
| Registrar/Transfer Agent: | American Stock Transfer & Trust Co |
Dollar amounts in U.S. millions except for per share data | |||||
| Full Year Audited Income | Latest Unaudited Income | Prior Unaudited Income | Balance Sheet | ||
| 12/31/97 | 12/31/97 | ||||
| Revenue: | $54.54 | Assets: | $13.69 | ||
| Net Income: | -$2.95 | Curr Assets: | $13.14 | ||
| EPS: | Liabilities: | $13.02 | |||
| Prior EPS: | Curr Liabilities: | $13.02 | |||
| Cash Flow/Oper: | $3.37 | Equity: | $0.68 | ||
| Cash Flow/Fin: | $0.08 | Cash: | $5.76 | ||
| Cash Flow/Inv: | -$0.09 | Working Cap: | $0.13 | ||
| Business Description |
| The company is a leading provider of comprehensive customized sales solutions on an outsourced basis to the U.S. pharmaceutical industry. The Company believes it has achieved this leadership position based on its 10 years of industry experience and its relationships with many of the pharmaceutical industry's largest companies. Since inception, the Company has designed customized product detailing programs for approximately 25 clients, including Pfizer, Inc., Astra Merck Inc., Glaxo Wellcome Inc. and Johnson & Johnson, Inc. These programs have been designed to promote more than 70 different products, including such leading prescription medications as Prilosec(Registered), Wellbutrin(Registered) and Cardura(Registered), as well as a number of over-the-counter ('OTC') products such as Bayer(Registered) Aspirin, Pepcid AC(Registered) and Monistat 5(Registered), to hospitals, pharmacies and physicians in approximately 20 different specialties. The Company's primary objective is to enhance its leadership position in the growing contract sales organization ('CSO') industry and to become the premier supplier of comprehensive sales solutions to the pharmaceutical industry and other segments of the healthcare market. |
| Competition |
| The Company primarily competes with in-house sales and marketing departments of pharmaceutical companies, other CSOs and other third party providers to the pharmaceutical industry, many of which possess substantially greater capital, personnel and other resources than the Company. In addition to the in-house sales forces of pharmaceutical companies, the Company's current major competitors include CSOs such as Innovex Limited, a subsidiary of Quintiles Transnational Corp., and the various sales and marketing affiliates of Snyder Communications, Inc. As a result of competitive pressures, various sales and marketing organizations providing services to the pharmaceutical industry are consolidating and are becoming targets of global organizations. This trend is likely to produce increased competition among CSOs for both clients and acquisition candidates and increased competitive pressures on smaller providers. If the trend in the pharmaceutical industry towards consolidation continues, pharmaceutical companies may have excess in-house sales force capacity and may, as a result, reduce or eliminate their use of CSOs. There are relatively few barriers to entry into the CSO industry and there can be no assurance that, as the CSO industry continues to evolve, additional competitors with greater resources than the Company will not enter the industry or that the Company's customers will not choose to conduct more of their sales services internally, with other CSOs or with organizations that can provide a broader range of sales and marketing services. Although the Company intends to monitor industry trends and respond accordingly, there can be no assurance that the Company will be able to anticipate and successfully respond to such trends. Increased competition may lead to price and other forms of competition that may have a material adverse effect on the Company's business and results of operations. |
| Business Plan |
| The Company's objective is to enhance its leadership position in the growing CSO industry and to become the premier supplier of comprehensive customized sales solutions to the pharmaceutical industry and other segments of the healthcare market. The following are the principal elements of the Company's growth strategy: (I) Enhance leadership position in growing CSO industry, (ii) Strengthen relationships with existing clients, (iii) Expand client base, (iv) Provide additional services, (v) Enter new geographic markets and (vi) Pursue strategic acquisitions. |
| Use of Proceeds |
| The proceeds from the proposed offering will be used for working capital, investment in infrastructure and other general corporate purposes including potential acquisitions.. |