Ever wonder how pharmaceutical companies such as Pfizer
That's how Pharmaceutical Product Development
The company has been extremely successful with its business plan, and its recent earnings report demonstrates it. Year over year, net revenue increased almost 20%, operating income almost doubled, and operating cash flow popped up $179 million, up from just $14 million in 2003. Add to this that the company booked record levels of new business authorizations -- $360 million vs. $310 million for the comparable quarter -- and that the company is trying to create royalty streams for itself, and the result is a company that has clearly won the attention of the health sciences world.
Investors have noticed, too, bidding the stock up 50% over the past year. This kind of outsourcing, if done right, can be a real boon to shareholders of both the parent company and the client. A dollar saved at one is a dollar earned, literally, at the other. Investors who do their due diligence may also find a few dollars earned in their brokerage accounts as well, if they choose the best outsourcers to invest in.
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Fool contributor Lawrence Meyers owns no stocks mentioned in this article, but he does outsource his housecleaning to qualified professionals.