Seeking Alpha

Investment thesis

PDI (PDII) is undervalued as higher investment spending results in temporary margin compression. However, a low EBITDA multiple and high net cash balance (69% of the market cap) provide downside protection while early evidence of a successful business transition should encourage investors that management is on the right track.

Company overview

PDII provides outsourced commercial services to pharmaceutical, biotech and healthcare companies in the U.S. The three operating segments include:

Sales services. This segment consists of the outsourced sales teams and EngageCE unit, which focuses on instilling best-practice treatment standards and procedures among healthcare practitioners.

Marketing services. This segment consists of the Group DCA and Voice units. Group DCA (acquired in November 2010) provides...

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