AS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION ON
MARCH 31, 2000
REGISTRATION NO. 333-_______
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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
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FORM S-8
REGISTRATION STATEMENT
UNDER
THE SECURITIES ACT OF 1933
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PHARMACEUTICAL PRODUCT DEVELOPMENT, INC.
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(EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER)
NORTH CAROLINA 56-1640186
(State or other jurisdiction (I.R.S. Employer
of incorporation or organization) Identification No.)
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3151 South 17th Street
Wilmington, North Carolina 28412
(Address of Principal Executive Offices) (Zip Code)
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ASK THE PHARMACIST, INC. 1995 PLAN
AND
NONSTATUTORY STOCK OPTION
(Full title of the plans)
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Fredric N. Eshelman, Pharm.D
Pharmaceutical Product Development, Inc.
3151 South 17th Street
Wilmington, North Carolina 28412
(Name and address of agent for service)
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(910) 251-0081
(Telephone number, including area code, of agent for service)
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COPIES TO:
DONALD R. REYNOLDS, ESQ.
WYRICK ROBBINS YATES & PONTON LLP
4101 LAKE BOONE TRAIL, SUITE 300
RALEIGH, NORTH CAROLINA 27607
(919) 781-4000
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<PAGE>
CALCULATION OF REGISTRATION FEE
<TABLE>
<CAPTION>
======================= =================== ========================== ========================= ====================
TITLE OF SECURITIES PROPOSED MAXIMUM PROPOSED MAXIMUM
TO AMOUNTS TO OFFERING PRICE AGGREGATE AMOUNT OF
BE REGISTERED BE REGISTERED PER SHARE OFFERING PRICE REGISTRATION FEE
- ----------------------- ------------------- -------------------------- ------------------------- --------------------
<S> <C> <C> <C> <C>
Common Stock, par 321,024 shares(1) $15.87 (2) $ 5,094,650.88 (2) $ 1,344.98 (2)
value $.10 per share
======================= =================== ========================== ========================= ====================
</TABLE>
(1) Includes 225,000 shares reserved for issuance under the Ask the Pharmacist,
Inc. 1995 Stock Plan and 96,024 shares under a nonstatutory stock option.
(2) Estimated solely for the purpose of calculating the registration fee
pursuant to rule 457(c), based on the average of the high and low prices
for the common stock on the NASDAQ National Market System on March 24,
2000.
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PART II
INFORMATION REQUIRED IN THE REGISTRATION STATEMENT
Item 3. INCORPORATION OF DOCUMENTS BY REFERENCE.
The following documents heretofore filed by Pharmaceutical Product
Development, Inc. (the "Company") with the Securities and Exchange Commission
(the "Commission") are incorporated herein by reference:
(a) The Company's Annual Report on Form 10-K for the fiscal
year ended December 31, 1999, filed pursuant to Section 13 of the Securities and
Exchange Act of 1934, as amended (the "Exchange Act"); and
(b) The description of the Company's Common Stock contained in
the Company's Registration Statement on Form 8-A (File No. 0-27570) filed
pursuant to Section 12 of the Exchange Act, including any amendment or report
filed for the purpose of updating such description.
All documents filed by the Company pursuant to Sections 13(a), 13(c),
14 or 15(d) of the Exchange Act after the date hereof and prior to the filing of
a post-effective amendment that indicates that all securities offered under this
registration statement have been sold or that deregisters all securities then
remaining unsold, shall be deemed to be incorporated by reference herein and to
be part hereof from the date of filing of such documents.
Any statement contained in a document incorporated by reference herein
shall be deemed to be modified or superseded for purposes hereof to the extent
that a statement contained herein (or in any other subsequently filed document
that also is or is deemed to be incorporated by reference herein) modifies or
supersedes such statement. Any statement so modified or superseded shall not be
deemed to constitute a part hereof except as so modified or superseded.
<PAGE>
Item 4. DESCRIPTION OF SECURITIES.
Not applicable.
Item 5. INTERESTS OF NAMED EXPERTS AND COUNSEL.
Not applicable.
Item 6. INDEMNIFICATION OF DIRECTORS AND OFFICERS.
Sections 55-8-50 through 55-8-58 of the North Carolina Business
Corporation Act permit a corporation to indemnify its directors, officers,
employees or agents under either or both a statutory or nonstatutory scheme of
indemnification. Under the statutory scheme, a corporation may, with certain
exceptions, indemnify an individual made, or threatened to be made, a party to
any threatened, pending or completed legal action, suit or proceeding, whether
civil, criminal, administrative, or investigative and whether formal or
informal, because such individual is or was a director of the corporation or an
individual who, while a director of the corporation, is or was serving at such
corporation's request as a director, officer, partner, trustee, employee or
agent of another corporation, partnership, joint venture, trust, employee
benefit plan or other enterprise, against liability incurred in such proceeding
if such individual (a) conducted himself in good faith, (b) reasonably believed
(i) in the case of conduct in his official capacity with the corporation, that
his conduct was in its best interests, and (ii) in all other cases, that his
conduct was at least not opposed to its best interests, and (c) in the case of
any criminal proceeding, he had no reasonable cause to believe his conduct was
unlawful. This indemnity may include the obligation to pay a judgment,
settlement, penalty, fine (including an excise tax assessed with respect to an
employee benefit plan) or reasonable expenses incurred with respect to a
proceeding. Whether a director has met the requisite standard of conduct for
indemnification set forth above is determined by the board of directors, a
committee of directors, special legal counsel or the shareholders in accordance
with Section 55-8-55 of the North Carolina Business Corporation Act. A
corporation may not indemnify a director under the statutory scheme (a) in
connection with a proceeding by or in the right of the corporation in which the
director was adjudged liable to the corporation, or (b) in connection with his
official capacity, in which he was adjudged liable on the basis that personal
benefit was improperly received by him.
In addition to, and separate and apart from, the indemnification
described above under the statutory scheme, Section 55-8-57 of the North
Carolina Business Corporation Act permits a corporation to indemnify or agree to
indemnify any one or more of its directors, officers, employees or agents
against liability and expenses in any proceeding (including proceedings brought
by or on behalf of the corporation) arising out of their status as such or their
activities in such capacities, except for any liabilities or expenses incurred
on account of activities that were, at the time taken, known or believed by the
person to be clearly in conflict with the best interests of the corporation. The
Company's Bylaws provide for indemnification to the fullest extent permitted by
law. Accordingly, the Company may indemnify its directors, officers and
employees in accordance with either the statutory or the nonstatutory standard.
Sections 55-8-52 and 55-8-56 of the North Carolina Business Corporation
Act require a corporation, unless its articles of incorporation provide
otherwise, to indemnify a director or
<PAGE>
officer who has been wholly successful, on the merits or otherwise, in the
defense of any proceeding to which such director or officer was a party. Unless
prohibited by the articles of incorporation, a director or officer also may make
application and obtain court-ordered indemnification if the court determines
that such director or officer is fairly and reasonably entitled to such
indemnification as provided in Section 55-8-54 of the North Carolina Business
Corporation Act.
Section 55-8-57 of the North Carolina Business Corporation Act provides
that a corporation may purchase and maintain insurance on behalf of an
individual who is or was a director, officer, employee or agent of the
corporation against certain liabilities incurred by such persons, whether or not
the corporation is otherwise authorized by the North Carolina Business
Corporation Act to indemnify any such party. The Company's directors and
officers are covered under directors' and officers' insurance policies
maintained by the Company.
As permitted by North Carolina law, Article IX of the Company's
Articles of Incorporation provides that no director of the Company shall have
personal liability arising out of an action by or in the right of the Company or
otherwise for monetary damages for breach of any duty as a director, provided
that such limitation will not apply to personal liability of a director with
respect to (i) acts or omissions that the director at the time of the breach
knew or believed were clearly in conflict with the best interests of the
Company, (ii) any liability for unlawful distributions under Section 55-8-33 of
the North Carolina General Statutes, (iii) any transaction from which the
director derived an improper personal benefit, or (iv) acts or omissions
occurring prior to the date the provision became effective.
Item 7. EXEMPTION FROM REGISTRATION CLAIMED.
Not applicable.
Item 8. EXHIBITS.
The following exhibits are filed as part of this Registration
Statement:
Exhibit Number Description
5.1 Opinion of Wyrick Robbins Yates & Ponton LLP.
23.1 Consent of PricewaterhouseCoopers LLP.
23.2 Consent of Wyrick Robbins Yates & Ponton LLP
(included in Exhibit 5.1).
24.1 Power of Attorney (see page S-1).
Item 9. UNDERTAKINGS.
(a) The undersigned registrant hereby undertakes:
(1) To file, during any period in which offers or sales are
being made, a post-effective amendment to this registration statement to include
any material information with
<PAGE>
respect to the plan of distribution not previously disclosed in the registration
statement or any material change to such information in the registration
statement;
(2) That, for the purpose of determining any liability under
the Securities Act of 1933, each such post-effective amendment shall be deemed
to be a new registration statement relating to the securities offered therein,
and the offering of such securities at that time shall be deemed to be the
initial bona fide offering thereof; and
(3) To remove from registration by means of a post-effective
amendment any of the securities being registered which remain unsold at the
termination of the offering.
(b) The undersigned registrant hereby undertakes that, for purposes of
determining any liability under the Securities Act of 1933, each filing of the
registrant's annual report pursuant to Section 13(a) or 15(d) of the Securities
Exchange Act of 1934 (and, where applicable, each filing of an employee benefit
plan's annual report pursuant to Section 15(d) of the Securities Exchange Act of
1934) that is incorporated by reference in the Registration Statement shall be
deemed to be a new registration statement relating to the securities offered
therein, and the offering of such securities at that time shall be deemed to be
the initial bona fide offering thereof.
(h) Insofar as indemnification for liabilities arising under the
Securities Act of 1933 may be permitted to directors, officers and controlling
persons of the registrant pursuant to the foregoing provisions, or otherwise,
the registrant has been advised that in the opinion of the Securities and
Exchange Commission such indemnification is against public policy as expressed
in the Act and is, therefore, unenforceable. In the event that a claim for
indemnification against such liabilities (other than the payment by the
registrant of expenses incurred or paid by a director, officer or controlling
person of the registrant in the successful defense of any action, suit or
proceeding) is asserted by such director, officer or controlling person in
connection with the securities being registered, the registrant will, unless in
the opinion of its counsel the matter has been settled by controlling precedent,
submit to a court of appropriate jurisdiction the question whether such
indemnification by it is against public policy as expressed in the Act and will
be governed by the final adjudication of such issue.
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Act of 1933, the Company
certifies that it has reasonable grounds to believe that it meets all of the
requirements for filing on Form S-8 and has duly caused this registration
statement to be signed on its behalf by the undersigned, thereunto duly
authorized, in the City of Wilmington, State of North Carolina, on the 30th day
of March, 2000.
PHARMACEUTICAL PRODUCT DEVELOPMENT, INC.
By: /s/ Fredric N. Eshelman
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Fredric N. Eshelman, Pharm.D.
Chief Executive Officer
Each person whose signature appears below in so signing also makes,
constitutes and appoints FREDRIC N. ESHELMAN and FRED B. DAVENPORT, JR. and each
of them acting alone, his or her true and lawful attorneys-in-fact, with full
power of substitution, for him or her in any and all capacities, to execute and
cause to be filed with the Securities and Exchange Commission any and all
amendments and post-effective amendments to this Form S-8, with exhibits thereto
and other documents in connection therewith, and hereby ratifies and confirms
all that said attorneys-in-fact or his, her or their substitute or substitutes
may do or cause to be done by virtue hereof.
Pursuant to the requirements of the Securities Act of 1933, as amended,
this Form S-8 has been signed below by the following persons in the capacities
and on the date indicated.
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<CAPTION>
Signature Title Date
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<S> <C> <C>
/s/ Fredric N. Eshelman Chief Executive Officer and Vice Chairman of the March 30, 2000
- ------------------------------------------ Board of Directors
Fredric N. Eshelman, Pharm.D. (Principal Executive Officer)
/s/ Linda Baddour Interim Chief Financial Officer and Chief March 30, 2000
- ------------------------------------------ Officer (Principal Financial and
Linda Baddour Accounting Officer)
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Signature Title Date
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<S> <C> <C>
/s/ Ernest Mario Director March 30, 2000
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Ernest Mario, Ph.D.
/s/ Stuart Bondurant Director March 27, 2000
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Stuart Bondurant, M.D.
/s/ Frederick Frank Director March 30, 2000
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Frederick Frank
/s/ Abraham E. Cohen Director March 30, 2000
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Abraham E. Cohen
/s/ John A. McNeill, Jr. Director March 27, 2000
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John A. McNeill, Jr.
Director March __, 2000
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Donald C. Harrison, M.D.
Director March __, 2000
- ------------------------------------------
Paul J. Rizzo
</TABLE>
EXHIBIT 5.1
WYRICK ROBBINS YATES & PONTON LLP
Attorneys at Law
The Summit
4101 Lake Boone Trail, Suite 300
Raleigh, North Carolina 27607-7506
March 30, 2000
Pharmaceutical Product Development, Inc.
3151 17th Street Extension
Wilmington, North Carolina 28401
Re: Registration Statement on Form S-8
Ladies and Gentlemen:
We have examined the Registration Statement on Form S-8 to be filed by
Pharmaceutical Product Development, Inc., a North Carolina corporation (the
"Company"), with the Securities and Exchange Commission on or about the date
hereof (the "Registration Statement"), in connection with the registration under
the Securities Act of 1933, as amended, of 321,024 shares of the Company's
Common Stock, $.10 par value per share (the "Shares"). We understand that the
Shares are to issued pursuant to the Company's assumption of the Ask the
Pharmacist, Inc. 1995 Incentive Stock Plan and a nonstatutory stock option. In
our examination, we have assumed the genuineness of all signatures, the
authenticity of all documents submitted to us as originals and the conformity
with the original of all documents submitted to us as copies thereof.
As your legal counsel, we have examined the proceedings taken, and are
familiar with the proceedings proposed to be taken, by you in connection with
the sale and issuance of the Shares.
It is our opinion that, upon completion of the proceedings being taken
or contemplated by us, as your securities counsel, to be taken prior to the
issuance of the Shares, including the proceedings being taken in order to permit
such transactions to be carried out in accordance with applicable state
securities laws, the Shares, when issued in the manner referred to in the
Registration Statement and in accordance with the resolutions adopted by the
Board of Directors of the Company, will be legally and validly issued, fully
paid and nonassessable.
<PAGE>
We consent to the use of this opinion as an exhibit to the Registration
Statement and further consent to the use of our name wherever appearing in the
Registration Statement, including the Prospectus relating thereto, and any
amendments thereto.
Very truly yours,
WYRICK ROBBINS YATES & PONTON LLP
/s/ WYRICK ROBBINS YATES & PONTON LLP
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EXHIBIT 23.1
[PRICEWATERHOUSECOOPERS LETTERHEAD]
CONSENT OF INDEPENDENT ACCOUNTANTS
We consent to the incorporation by reference in this Registration
Statement on Form S-8 of our report dated February 8, 2000 relating to the
financial statements and financial statement schedules of Pharmaceutical Product
Development, Inc., which appears in Pharmaceutical Product Development, Inc.'s
Annual Report on Form 10-K for the year ended December 31, 1999.
/s/ PricewaterhouseCoopers LLP
---------------------------------
PricewaterhouseCoopers LLP
Raleigh, North Carolina
March 30, 2000
