PPDI Shares Fall After Analyst Downgrades

WASHINGTON (AP) — Shares of Pharmaceutical Product Development Inc. fell Monday after an analyst downgraded the contract drug research firm, saying it will have trouble recovering from a string of contract cancellations.

The Wilmington, N.C.-based company designs and conducts clinical trials of experimental medications for drug companies. However, last month the company reported more than $200 million in canceled research contracts.

Barclays analyst Douglas Tsao downgraded company shares to "Equal Weight," saying that while the problems facing the company aren't new, "we don't think there is a quick fix and we believe this will keep investors frustrated in the interim."

Tsao set a share price target of $22, adding "while we see little downside to the current valuation, we also don't see a compelling opportunity."

Shares of PPDI fell 66 cents, or 3.2 percent, to $20.23 in midday trading.