PPD Announces Filing of Form 10 Registration Statement with SEC for Previously Announced Spin-off

Important step toward completing the spin-off of its compound
partnering business

24 Feb. 2010


WILMINGTON, N.C. (February 24, 2010) - PPD, Inc. (Nasdaq: PPDI) today announced its wholly-owned subsidiary, Furiex Pharmaceuticals, Inc., filed a Form 10 registration statement with the Securities and Exchange Commission, or SEC, in connection with its previously announced spin-off. The filing is an important milestone toward completing the spin-off of its compound partnering business into Furiex Pharmaceuticals as an independent, publicly traded company.

PPD expects to accomplish the spin-off through a tax-free, pro rata dividend distribution of the common stock of Furiex Pharmaceuticals. Upon completion of the spin-off, PPD shareholders will receive 100 percent of the outstanding common stock of Furiex Pharmaceuticals. PPD has filed a request with the Internal Revenue Service for a private letter ruling that the spin-off be tax free to PPD and its shareholders.

The proposed spin-off is expected to be completed in mid-2010. Completion of the spin-off is subject to numerous conditions, including final approval of PPD's board of directors, the effectiveness of the Form 10 filed with the SEC, and the receipt of a private letter ruling and an independent opinion that the spin-off will be tax free. Approval by PPD's shareholders is not required for completion of the spin-off.

The Form 10 contains important information about the transaction and the anticipated business of Furiex Pharmaceuticals, including pro forma financial information. A copy of the Form 10 is available on the company's Web site.

Except for historical information, all of the statements, expectations and assumptions contained in this news release, including expectations and assumptions about the filing of Form 10 with the SEC and the timing of the completion of the spin-off, are forward-looking statements that involve a number of risks and uncertainties. Although PPD attempts to be accurate in making these forward-looking statements, it is possible that future circumstances might differ from the assumptions on which such statements are based. In addition, other important factors which could cause results to differ materially include the following: the possibility that we will decide not to proceed with the spin-off; uncertainties surrounding the timing and results of the review of the Form 10 by the SEC, which could result in comments that could prohibit the company from proceeding with the spin-off or require significant changes to the structure or timing thereof; the possibility that we will not receive a private letter ruling and an independent opinion that the spin-off will be tax-free to PPD and its shareholders; risks inherent in organizing a new publicly traded company; the ability to attract and retain key personnel; risks associated with and dependence on collaborative relationships; risks associated with the development and commercialization of drugs, including earnings dilution and obtaining regulatory approval; risks associated with acquisitions and investments, such as impairments; rapid technological advances that make our products and services less competitive; and the other risk factors set forth from time to time in the Form 10 and in the SEC filings for PPD, copies of which are available free of charge upon request from the PPD investor relations department.

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