Insiders Buying This Pharm

The clinical testing process for new drugs can be a lengthy and time-consuming process. To stay focused on their core business of developing and selling drugs, many major drug companies farm out the interim testing process to third parties, which are known as contract research organizations (CROs). For a while, CROs were all the rage as it looked as if they could garner all the work they could handle.

Growth for CROs has cooled in the last few years, however, and that has sent many share prices in the sector falling back to earth. But Pharmaceutical Product and Development (PPDI Quote) has managed to keep growing at a rapid clip these last few years, further cementing the company's dominant position in the CRO industry.

Nonetheless, a few internal stumbles have finally brought PPDI back to earth. In just the last 10 weeks, shares have slumped from $35 to $25. Its stock price is now as cheap as the other CROs, even though the company's earnings continue to grow at a relatively faster clip. ...