SECURITIES AND EXCHANGE COMMISSION
                             Washington D.C. 20549


                                   FORM 10-Q

(Mark One)
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF
    THE SECURITIES AND EXCHANGE ACT OF 1934.
    For the quarterly period ended September 30, 1999.

                                       OR

[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF
    THE SECURITIES EXCHANGE ACT OF 1934.
    For the transition period from ______________ to ______________.

                         Commission File Number 0-27570


                             PHARMACEUTICAL PRODUCT
                               DEVELOPMENT, INC.
             (Exact name of registrant as specified in its charter)


              North Carolina                            56-1640186
        (State or other jurisdiction of               (I.R.S. Employer
        incorporation or organization)             Identification Number)


                         3151 South Seventeenth Street
                           Wilmington, North Carolina
                    (Address of principal executive offices)



                                     28412
                                   (Zip Code)


        Registrants telephone number, including area code (910) 251-0081


   Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 of 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days. Yes X  No
                                             ---    ---

   Indicate the number of shares outstanding of each of the issuer's classes of
common stock, as of the latest practicable date: 24,629,036 shares of common
stock, par value $0.10 per share, as of October 29, 1999.


<PAGE>

                                     INDEX
                                                                            Page
                                                                            ----
Part I. FINANCIAL INFORMATION
Item 1. Financial Statements
     Consolidated Condensed Statements of Operations for the Three and
        Nine Months Ended September 30, 1999 and 1998........................  3
     Consolidated Condensed Balance Sheets as of September 30, 1999
        and December 31, 1998................................................  4
     Consolidated Condensed Statements of Cash Flows for the
        Nine Months Ended September 30, 1999 and 1998........................  5
        Notes to Consolidated Condensed Financial Statements.................  6
Item 2. Management's Discussion and Analysis of Financial Condition and
        Results of Operations................................................  9
Item 3. Quantitative and Qualitative Disclosures about Market Risk........... 16

Part II.OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K..................................... 17
Signatures................................................................... 18



FORWARD-LOOKING STATEMENTS

   Statements in this Quarterly Report on Form 10-Q that are not descriptions of
historical facts are forward-looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995 reflecting management's current
view with respect to certain future events and financial performance that are
subject to risks and uncertainties. Actual results could differ materially from
those currently anticipated due to a number of factors, including those set
forth herein and in the Company's other SEC filings, and including, in
particular: risks relating to government regulation; dependence on certain
industries; the fixed price nature of contracts; the commencement, completion or
cancellation of large contracts; progress of ongoing contracts; potential
liability associated with the Company's lines of business; risks associated with
acquisitions; continued success in sales growth; dependence on personnel;
management of growth; and competition. Because a large percentage of the
Company's operating costs are relatively fixed variations in the timing and
progress of large contracts can materially affect results. See "Part I.
Financial Information. Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations - Potential Volatility of Quarterly
Operating Results and Stock Price".

                                       2
<PAGE>
           PHARMACEUTICAL PRODUCT DEVELOPMENT, INC. AND SUBSIDIARIES
                CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
                                  (unaudited)
                    (in thousands, except per share amounts)

<TABLE>
<CAPTION>
                                                                   Three Months Ended      Nine Months Ended
                                                                      September 30,          September 30,
                                                                     ----------------       ---------------
                                                                      1999      1998         1999      1998
                                                                     ------    ------       ------    -----
<S>                                                                  <C>         <C>           <C>     <C>
Life sciences revenues, net of subcontractor costs of
        $26,912, $27,666, $87,760 and $71,262, respectively         $78,849   $61,357     $223,191 $170,786
Discovery sciences revenues, net of subcontractor costs of
        $17, $10, $51 and $43, respectively                             509        96        2,031      286
                                                                    -------   -------      -------  -------
Net revenue                                                          79,358    61,453      225,222  171,072
                                                                    -------   -------      -------  -------
Direct costs - Life sciences                                         37,913    30,773      108,432   85,840
Direct costs - Discovery sciences                                     2,453       935        5,586    2,639
Selling, general and administrative expenses                         24,182    20,130       70,285   57,634
Depreciation and amortization                                         3,848     3,019       10,905    9,041
Merger costs                                                              -         -          218        -
Acquired in-process research and development costs                        -         -            -    3,163
                                                                    -------   -------      -------  -------
                                                                     68,396    54,857      195,426  158,317
                                                                    -------   -------      -------  -------
Operating income                                                     10,962     6,596       29,796   12,755
Interest income, net                                                    877       330        2,334      832
Other income, net                                                       246       394          997    2,100
Income from continuing operations before provision                  -------   -------      -------  -------
        for income taxes                                             12,085     7,320       33,127   15,687
Provision for income taxes                                            4,689     2,892       12,853    6,156
                                                                    -------   -------      -------  -------
Income from continuing operations                                     7,396     4,428       20,274    9,531
                                                                    -------   -------      -------  -------
Income (loss) from operations of discontinued environmental
        sciences segment, net of income taxes of $(171), $782,
        $(250) and $2,289, respectively                                (270)    1,198         (395)   3,506
                                                                    -------   -------      -------  -------
Net income                                                          $ 7,126   $ 5,626      $19,879  $13,037
                                                                    =======   =======      =======  =======
Income from continuing operations per share:
        Basic                                                       $  0.30   $  0.19      $  0.83  $  0.41
                                                                    =======   =======      =======  =======
        Diluted                                                     $  0.30   $  0.19      $  0.81  $  0.41
                                                                    =======   =======      =======  =======
Income (loss) from discontinued operations per share:
        Basic                                                       $ (0.01)  $  0.05      $ (0.02) $  0.15
                                                                    =======   =======      =======  =======
        Diluted                                                     $ (0.01)  $  0.05      $ (0.01) $  0.15
                                                                    =======   =======      =======  =======
Net income per share:
        Basic                                                       $  0.29   $  0.24      $  0.81  $  0.56
                                                                    =======   =======      =======  =======
        Diluted                                                     $  0.29   $  0.24      $  0.80  $  0.56
                                                                    =======   =======      =======  =======
Weighted average number of common shares outstanding:
        Basic                                                        24,629    23,267       24,544   23,124
        Dilutive effect of stock options                                246       178          345      152
                                                                    -------   -------      -------  -------
       Diluted                                                       24,875    23,445       24,889   23,276
                                                                    =======   =======      =======  =======
</TABLE>
              The accompanying notes are an integral part of these
                  consolidated condensed financial statements.

                                       3

<PAGE>

           PHARMACEUTICAL PRODUCT DEVELOPMENT, INC. AND SUBSIDIARIES
                     CONSOLIDATED CONDENSED BALANCE SHEETS
                                 (in thousands)


                                     ASSETS
<TABLE>
<CAPTION>

                                                            September 30,          December 31,
                                                               1999                   1998
                                                            ------------           ------------
                                                            (unaudited)
<S>                                                              <C>                     <C>
Current assets
        Cash and cash equivalents                               $ 41,393               $ 34,083
        Accounts receivable and unbilled services, net           120,223                125,065
        Investigator advances                                      1,157                  1,505
        Prepaid expenses and other current assets                 11,917                  9,562
        Deferred tax asset                                         3,054                  2,751
                                                                 -------                -------
          Total current assets                                   177,744                172,966

Property, plant and equipment, net                                50,351                 42,509
Goodwill, net                                                      9,888                 14,869
Other assets, net                                                 27,249                  6,238
                                                                 -------                -------
          Total assets                                          $265,232               $236,582
                                                                 =======                =======
                      LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
        Current maturities of long-term debt                    $   247                $  3,580
        Accounts payable                                          7,582                   7,812
        Payables to investigators                                 5,603                   5,204
        Other accrued expenses                                   25,623                  28,007
        Unearned income                                          39,643                  34,446
                                                                -------                 -------
          Total current liabilities                              78,698                  79,049

Long-term debt, less current maturities                             145                     161
Deferred rent and other                                           1,841                   1,962
                                                                -------                 -------
        Total liabilities                                        80,684                  81,172
                                                                -------                 -------
Shareholders' equity
        Common stock                                              2,463                   2,343
        Paid-in capital                                         134,012                 123,709
        Retained earnings                                        50,080                  29,929
        Accumulated other comprehensive loss                     (2,007)                   (571)
                                                                -------                 -------
        Total shareholders' equity                              184,548                 155,410
                                                                -------                 -------

        Total liabilities and shareholders' equity             $265,232                $236,582
                                                                =======                 =======

</TABLE>

              The accompanying notes are an integral part of these
                  consolidated condensed financial statements.

                                       4

<PAGE>

           PHARMACEUTICAL PRODUCT DEVELOPMENT, INC. AND SUBSIDIARIES
                CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
                                  (unaudited)
                                 (in thousands)

<TABLE>
<CAPTION>
                                                                    Nine Months Ended
                                                                      September 30,
                                                                  ---------------------
                                                                   1999          1998
                                                                  -------       -------
<S>                                                                  <C>         <C>
Cash flows from operating activities:
        Net income                                                $19,879       $13,037
        Adjustments to reconcile net income to net cash
        provided by operating activities:
           Gain on sale of CCCR                                         -        (1,071)
           Acquired in-process research and development costs           -         3,163
           Depreciation and amortization                           11,102        10,418
           Change in operating assets and liabilities              (5,670)      (13,879)
                                                                   ------        ------
           Net cash provided by operating activities               25,311        11,668
                                                                   ------        ------
Cash flows from investing activities:
           Cash received from repayment of note receivable            500             -
           Sales of investments                                         -         8,000
           Purchases of investments                                (3,500)            -
           Purchases of property and equipment                    (18,678)      (15,568)
           Net cash received from (paid for) acquisitions             738        (1,006)
           Net cash paid for acquisition of in-process research
           and development costs                                        -        (3,163)
           Proceeds from sale of property and equipment                14             -
           Net cash received in sale of businesses                  3,421         5,285
                                                                   ------        ------
           Net cash used in investing activities                  (17,505)       (6,452)
                                                                   ------        ------
Cash flows from financing activities:
           Proceeds from long-term debt                               982             -
           Repayment of long-term debt                             (6,246)         (998)
           Proceeds from issuance of common stock                   6,203         5,222
           Other                                                        -            49
                                                                   ------        ------
           Net cash provided by financing activities                  939         4,273
                                                                   ------        ------
Effect of exchange rate changes on cash                            (1,435)          810
                                                                   ------        ------
Net increase in cash and cash equivalents                           7,310        10,299
Cash and cash equivalents, beginning of the period                 34,083        15,879
                                                                   ------        ------
Cash and cash equivalents, end of the period                      $41,393       $26,178
                                                                   ======        ======
</TABLE>

              The accompanying notes are an integral part of these
                  consolidated condensed financial statements.
                                       5
<PAGE>

           PHARMACEUTICAL PRODUCT DEVELOPMENT, INC. AND SUBSIDIARIES
              NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
                                  (unaudited)

1. ACCOUNTING POLICIES

   The significant accounting policies followed by Pharmaceutical Product
Development, Inc. and its subsidiaries, collectively (the Company), for interim
financial reporting are consistent with the accounting policies followed for
annual financial reporting. These unaudited consolidated condensed financial
statements have been prepared in accordance with Rule 10-01 of Regulation S-X,
and in management's opinion, all adjustments of a normal recurring nature
necessary for a fair presentation have been included. The accompanying
consolidated condensed financial statements do not purport to contain all the
necessary financial disclosures that might otherwise be necessary in the
circumstances and should be read in conjunction with the consolidated financial
statements and notes thereto in the Company's Annual Report on Form 10-K for the
year ended December 31, 1998. The results of operations for the three-month and
nine-month periods ended September 30, 1999 are not necessarily indicative of
the results to be expected for the full year or any other period. The amounts on
the December 31, 1998 consolidated condensed balance sheet have been derived
from the audited financial statements included in the Company's Annual Report on
Form 10-K for the year ended December 31, 1998.

   USE OF ESTIMATES IN THE PREPARATION OF FINANCIAL STATEMENTS

   The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities and disclosure of
contingent assets and liabilities at the date of the financial statements and
the reported amounts of revenues and expenses during the reporting period.
Actual results could differ from those estimates.

   RECLASSIFICATIONS

   Certain 1998 financial statement amounts have been reclassified to conform
with the 1999 presentation.

   FINANCIAL INSTRUMENTS

   In the fourth quarter of 1999, the Company entered into a short sale and
repurchase of U.S. Treasury bonds with a face value of $520 million based on
management's expectations that interest rates will rise between the date the
transaction was entered into and its maturity date of May 15, 2000. The Company
will be required to record these financial instruments at their net fair value
on each reporting date, with any changes in the fair value recorded as either
interest income or interest expense. As a result of entering into this
transaction, the Company expects to generate a capital gain of approximately
$11,000,000, which will allow the Company to utilize its capital loss
carryforwards, which previously had been fully reserved. The Company was
required to make a margin deposit of $2.6 million related to this transaction.


2. PRINCIPLES OF CONSOLIDATION

   The accompanying unaudited consolidated condensed financial statements
include the accounts and operations of the Company and its wholly-owned
subsidiaries. All significant intercompany balances and transactions have been
eliminated.

3. ACQUISITIONS

Poolings

   In March 1999, the Company acquired ATP, Inc. ("PPD ATP"), a health
information services company. PPD ATP provides customized inbound and outbound
telecommunications programs targeting consumers and health care providers. The
Company acquired PPD ATP in exchange for approximately 876,000 shares of the
Company's common stock. Outstanding PPD ATP options were exchanged for options
to acquire approximately 216,000 shares of the Company's common stock. This
acquisition was accounted for as a pooling of interests transaction. Results of
operations for PPD ATP are included in the consolidated results of operations of
the Company beginning January 1, 1999. Results of operations of the Company for
periods prior to January 1, 1999 were not restated as PPD ATP's results of
operations for the year ended December 31, 1998 were not material to the
Company's 1998 operating results.

                                        6

<PAGE>

           PHARMACEUTICAL PRODUCT DEVELOPMENT, INC. AND SUBSIDIARIES
              NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
                                  (unaudited)
3. ACQUISITIONS (continued)

Purchases

   In January 1998, the Company acquired two environmental consulting businesses
for a total of $1,006,000 in cash and the potential for the former owners to
earn an additional amount depending on the profitability of the businesses for a
certain period after the acquisition. In connection with these acquisitions, the
Company recorded approximately $900,000 in goodwill. These businesses were
disposed of with the rest of the environmental sciences segment on January 31,
1999 (see Note 6 of Notes to Consolidated Condensed Financial Statements).

4. EARNINGS PER SHARE

   The computation of basic income per share information is based on the
weighted average number of common shares outstanding during the period. The
computation of diluted income per share information is based on the weighted
average number of common shares outstanding during the period plus the effects
of any dilutive common stock equivalents at the end of the period.

5. SALE OF BUSINESS

   In February 1998, the Company, through its subsidiary Clinix International
Inc., sold substantially all of the assets of the Chicago Center for Clinical
Research ("CCCR"). The consideration received by the Company for CCCR totaled
approximately $7,785,000, which was comprised of $5,285,000 in cash and a
promissory note of $2,500,000 payable over five years. The sale resulted in a
gain of approximately $1,071,000 that was recognized as other income during the
first quarter of 1998. As part of the sales agreement, the Company continued to
provide CCCR with certain clinical and administrative services for an agreed
upon amount through the first quarter of 1999.

6. DISCONTINUED OPERATIONS

   Effective January 31, 1999, the Company sold its environmental sciences
segment to Environ Holdings, Inc., a new company formed by the management of the
environmental sciences segment, for total consideration of approximately
$26,244,000. The Company received cash of $1,244,000, a four-year note for
$7,000,000 and a 12-year note for $18,000,000. The sale resulted in no gain or
loss because the sales price was equal to the book value of the net assets sold.
In the first quarter of 1999, the Company received full pre-payment of the
four-year note. Results of operations for the three-month and nine-month periods
ended September 30, 1998 have been restated to reflect the environmental
services segment as discontinued operations.

   The consolidated condensed balance sheet at December 31, 1998 includes the
following assets and liabilities of the environmental sciences segment (in
thousands):

        Current assets                             $24,214
        Total assets                                32,527

        Current liabilities                          6,030
        Total liabilities                            6,209
                                                    ------
        Net assets of discontinued operations      $26,318
                                                    ======
                                       7
<PAGE>

           PHARMACEUTICAL PRODUCT DEVELOPMENT, INC. AND SUBSIDIARIES
              NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
                                  (unaudited)
7. COMPREHENSIVE INCOME

   The Company's comprehensive income for the three-month periods ended
September 30, 1999 and 1998 was $8,028,000 and $6,706,000, respectively, and for
the nine-month periods ended September 30, 1999 and 1998 was $18,443,000 and
$13,847,000, respectively.

   The Company's other comprehensive income (loss) consisted of changes in the
cumulative translation adjustment for the three-month periods ended September
30, 1999 and 1998 of $902,000 and $1,080,000, respectively, and for the
nine-month periods ended September 30, 1999 and 1998 of $(1,436,000) and
$810,000, respectively.

8. ACCOUNTS RECEIVABLE AND UNBILLED SERVICES:

   Accounts receivable and unbilled services consisted of the following:

                                September 30,                 December 31,
                                   1999                          1998
                                ------------                  -----------
   Trade:                         (unaudited)
        Billed                       $73,152                      $75,405
        Unbilled                      47,970                       51,702
        Reserve for doubtful
        accounts                        (899)                      (2,042)
                                    --------                     --------
                                    $120,223                     $125,065
                                    ========                     ========

                                       8
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
        RESULTS OF OPERATIONS

COMPANY OVERVIEW

   Pharmaceutical Product Development, Inc. and its subsidiaries (collectively
the Company) provide a broad range of research and development and consulting
services in the life sciences and discovery sciences segments. In the life
sciences segment we provide worldwide clinical research and development of
pharmaceutical products and medical devices, biostatistical analysis and
analytical laboratory services. Our discovery sciences services include target
identification and validation, compound creation, screening and compound
selection. The Company provides services under contract to clients in the
pharmaceutical, general chemical, agrochemical, biotechnology and other
industries. In addition, we perform discovery research on certain compounds for
which the Company holds a license. The Company markets its life sciences
services primarily in the United States and Europe. The Company's discovery
revenues have all been generated in the United States to date.

   Prior to selling its environmental sciences segment on January 31, 1999 (see
Note 6 of Notes to Consolidated Condensed Financial Statements), the Company
also provided environmental sciences services. Environmental sciences services
included assessment and management of chemical and environmental health risk,
site investigation and remediation planning and litigation support. In addition
to the industries mentioned above, the environmental sciences segment also
marketed services to clients in the industrial, manufacturing and oil and gas
industries. The environmental sciences segment marketed its services primarily
in the United States and Europe.

        Life Sciences Group

   The Company's Life Sciences Group provides services through PPD Development,
Inc. and its wholly owned subsidiaries (collectively "PPD Development") in the
Americas (United States, Canada, and South America), Africa, Asia, Europe and
the Pacific Rim. PPD Informatics, a division of PPD Development, provides
software development and system integration services to the pharmaceutical and
biotechnology industries. PPD ATP, a division of PPD Development, provides
customized inbound and outbound telecommunications programs targeting consumers
and health care providers.

   PPD Development provides its clients services designed to reduce drug
development time. Reduced development time allows the client to get its products
into the market faster and to maximize the period of marketing exclusivity and
the economic return for those products. In addition, PPD Development's
integrated services offer its clients a variable cost alternative to the fixed
costs associated with internal drug development. PPD Development's professional
CRO services include Phase I clinical testing, laboratory services, patient and
investigator recruitment, Phase II-IV clinical trial monitoring and management,
clinical data management and biostatistical analysis, regulatory consulting and
submissions, medical writing, pharmacovigilance, and healthcare economics and
outcomes research. The Company believes that it is one of a few CROs in the
world capable of providing such a broad range of clinical development services.

   PPD Informatics became a division of the Company through the acquisition of
Belmont Research, Inc. in March 1997. PPD Informatics clients include
international and domestic pharmaceutical and biotechnology companies,
scientific software vendors and government agencies, including the FDA. PPD
Informatics develops specialized software products to support different aspects
of the pharmaceutical research and development process, including drug
discovery, clinical trials and regulatory review. Current PPD Informatics
software products include Resolve(TM), which manages data queries to
investigator sites, TableTrans(R), which enables ease of data transformation,
and CrossGraphs(R), which is used for exploration and presentation of research
data.

   PPD ATP became a division of the Company through the acquisition of ATP, Inc.
in March 1999. PPD ATP manages telephone inquiries from consumers and health
care providers by utilizing on-line, licensed pharmacists and other health care
professionals who are available 24 hours a day, 365 days a year. PPD ATP creates
and implements customized inbound and outbound telecommunication programs for
pharmaceutical manufacturers, chain drug stores, managed care organizations and
other corporations with health care enhancing objectives.

   During 1998, the Life Sciences Group also included Intek Labs, Inc.
("Intek"), which was acquired in November 1997. Intek provides molecular
genotyping, phenotyping and large-scale genomic DNA purification and archiving
services through its Good Laboratory Practice ("GLP") certified laboratories.
Intek also furnishes pharmacogenetic services for clinical trials. In February
1999, Intek became a subsidiary of PPGx, Inc. ("PPGx"), the Company's
pharmacogenomics joint venture with Axys Pharmaceuticals, Inc. PPGx provides
pharmacogenomics products and services to pharmaceutical and biotechnology
companies. Pharmacogenomics is the use of genetic information to predict the
safety, toxicity and/or efficacy of drugs in individual patients or groups of
patients. We believe that pharmacogenomics is becoming widely adopted as a drug
discovery and development tool and increasingly important as part of an
individuals diagnosis and treatment regimen. The Company owns a minority
position in PPGx, with the option to increase its ownership share. The Company
also has exclusive marketing rights to PPGx pharmacogenomics products and
services. For more detailed information on the Company's Life Sciences Group,
see the Company's Annual Report on Form 10-K for the year ended December 31,
1998.

        Discovery Sciences Group

   PPD Discovery, Inc. ("PPD Discovery") was established in June 1997 when the
Company acquired SARCO, Inc. ("SARCO"), a combinational chemistry company, and
the GSX System, a functional genomics platform technology. PPD Discovery focuses
on the discovery research segment of the pharmaceutical research and development
outsourcing market. In May 1998, the Company created GenuPro, Inc. ("GenuPro"),
a wholly owned subsidiary, which holds licenses to a number of compounds in the
genitourinary field. GenuPro manages and performs the discovery research and
development of these compounds. For more detailed information on the Company's
Discovery Sciences Group, see the Company's Annual Report on Form 10-K for the
year ended December 31, 1998.

RESULTS OF OPERATIONS

GENERAL

   During the third quarter of 1999, the Company reported net income of $7.1
million, or $0.30 per diluted share, compared to net income of $5.6 million, or
$0.24 per diluted share, during the third quarter of 1998. Net income from
continuing operations (excluding operations of the discontinued division) of
$7.4 million was 67.0% higher than net income from continuing operations for the
same period a year ago.

   In March 1999, the Company acquired ATP, Inc. ("PPD ATP"), a health
information services company. PPD ATP provides customized inbound and outbound
telecommunications programs targeting consumers and health care providers. The
Company acquired PPD ATP in exchange for approximately 876,000 shares of the
Company's common stock. Outstanding PPD ATP options were exchanged for options
to acquire approximately 216,000 shares of the Company's common stock. This
acquisition was accounted for as a pooling of interests transaction. Results of
operations for PPD ATP are included in the consolidated results of operations of
the Company beginning January 1, 1999. Results of operations of the Company for
periods prior to January 1, 1999 were not restated as PPD ATP's results of
operations for the year ended December 31, 1998 were not material to the
Company's 1998 operating results.

   In February 1999, the Company formed a joint venture, PPGx, with Axys
Pharmaceuticals, Inc. to pursue the business of pharmacogenomics. The Company
contributed $1.5 million in cash, the stock of its subsidiary Intek and the
rights to a software license, for an 18.2% ownership interest in PPGx.
Separately, the Company and Axys entered into a software licensing agreement
whereby the Company licensed certain software from Axys for $2.0 million. The
Company records this investment under the cost method. As of September 30, 1999,
the investment in PPGx was $4.2 million and was recorded in Other Assets, net on
the balance sheet. The Company acts as guarantor on a $8.0 million revolving
credit facility for PPGx. The Company has exclusive marketing rights to PPGx
pharmacogenomics products and services and an option to increase its ownership
share of PPGx after the first anniversary of PPGx.

   Effective January 31, 1999, the Company sold its environmental sciences
segment to Environ Holdings, Inc., a new company formed by the management of the
environmental sciences segment. The Company received cash of $1.2 million, a
four-year note in the amount of $7.0 million (which was paid in the first
quarter of 1999) and a 12-year note in the amount of $18.0 million. The Company
received an opinion from Lehman Brothers to the effect that the consideration
received was fair from a financial standpoint. The Company did not recognize a
gain or loss as a result of the sale because the sales price was equal to the
book value of the net assets sold. The Company also entered into a three-year
consulting agreement to provide certain consulting services to Environ Holdings
for a fee of $0.5 million per year.

   THREE MONTHS ENDED SEPTEMBER 30, 1999 VERSUS THREE MONTHS ENDED SEPTEMBER 30,
1998

   Net revenue increased $17.9 million, or 29.1%, to $79.4 million in 1999 from
$61.5 million in 1998. The Life Sciences Group's operations accounted for 99.4%
of the Company's net revenue for the third quarter of 1999. The Life Sciences
Group generated net revenue of $78.8 million, up $17.5 million, or 28.5%, from
the 1998 third

                                       10
<PAGE>

quarter. The growth in the Life Sciences Group operations was primarily
attributable to an increase in the size, scope and number of contracts in the
global CRO Phase II-IV division. In addition, PPD ATP contributed net revenue of
$3.7 million to the Life Sciences Group for the three months ended September 30,
1999. The Discovery Sciences Group generated net revenue of $0.5 million, an
increase of $0.4 million, from the 1998 third quarter. The growth in the
Discovery Sciences Group operations was primarily attributable to an increase in
the number of contracts in the combinatorial chemistry division and revenues
earned from a joint development and license agreement which was entered into by
the functional genomics division during the fourth quarter of 1998, which
extends through the second quarter of 2000.

   Total direct costs increased 27.3% to $40.4 million from $31.7 million last
year and decreased as a percentage of net revenue to 50.9% from 51.6%. Life
Sciences Group direct cost increased to $37.9 million in 1999 as compared to
$30.8 million in 1998. The increased direct cost dollars resulted primarily from
increased personnel costs due to the increase in the size and number of
contracts in the Global CRO Phase II-IV division. In addition, PPD ATP
contributed direct costs of $1.9 million to the Life Sciences Group for the
three months ended September 30, 1999. Life Sciences Group direct costs
decreased as a percentage of related net revenue to 48.1% from 50.2%. This
decrease was principally due to a focused effort to control costs, while
revenues increased. Discovery Sciences Group direct costs increased to $2.5
million in 1999 as compared to $0.9 million in 1998. This increase was primarily
due to the $1.2 million in additional costs for a Phase II trial associated with
GenuPro in the 1999 period.

   Selling, general and administrative ("SG&A") expenses increased 20.1% to
$24.2 million in 1999 from $20.1 million in the same period last year. The
increase is primarily attributable to an increase in administrative personnel to
support the Company's expanding operations. As a percentage of net revenue, SG&A
expenses decreased to 30.5% from 32.8% last year.

   Total depreciation and amortization expense of $3.8 million in 1999 was $0.8
million, or 27.5%, higher than the same period last year. The increase was
related to the depreciation of the increased investment in property and
equipment due primarily to the acquisition of PPD ATP in March 1999 and the
Company's growth. The Company's capital expenditures were $5.4 million in the
third quarter of 1999. The expansion of existing operations of existing
operations accounted for approximately 61.0% of this capital investment, and the
enhancement and expansion of information technology capacities accounted for
approximately 33.2% of this capital investment.

   Operating income improved 66.2% to $11.0 million for the three months ended
September 30, 1999, from $6.6 million for the three months ended September 30,
1998. As a percentage of net revenue, the quarterly operating income improved to
13.8% in 1999 from 10.7% for the same period last year. These increases were
primarily due to the Company's focus on controlling its costs, while revenues
increased.

   Net interest and other income increased $0.4 million, rising to $1.1 million
for the three months ending September 30, 1999 from $0.7 million for the three
months ending September 30, 1998. The improvement was primarily the result of
the increase in interest income of $0.5 million. During the third quarter of
1999, the Company received $0.4 million in interest income related to the notes
receivable from CCCR and Environ Holdings. The Company expects to receive an
additional $0.4 million in interest income in the fourth quarter of 1999 from
these notes.

   The Company recorded income from discontinued operations, net of income tax
expense, related to its environmental sciences segment, of $1.2 million in the
third quarter of 1998. The environmental sciences segment was sold on January
31, 1999.

   The provision for income taxes increased $1.8 million to $4.7 million for the
three months ended September 30, 1999, as compared to $2.9 million for the three
months ended September 30, 1998 due primarily to the Company's increase in
earnings before income taxes. As a percentage of income before income taxes, the
provision for income taxes decreased slightly to 38.8% for 1999 from 39.5% for
1998.

   The net income of $7.1 million in the third quarter of 1999 represents an
improvement of $1.5 million over the $5.6 million over the same quarter a year
ago. Net income per basic and diluted share of $0.29 for the third quarter of
1999 compares to $0.24 in the third quarter of 1998. Excluding non-recurring
items (results of operations of the discontinued environmental services), the
Company's third quarter 1999 income from continuing operations of $7.4 million
was 67.0% higher than income from continuing operations of $4.4 million for the
third quarter of 1998. On an equivalent earnings-per-share basis, net income per
diluted share (excluding non-recurring costs) of $0.30 compares to net income
per diluted share of $0.19 for the same period last year computed on 1.4 million
less shares outstanding.
                                       11


<PAGE>

NINE MONTHS ENDED SEPTEMBER 30, 1999 VERSUS NINE MONTHS ENDED SEPTEMBER 30, 1998

   Net revenue increased $54.1 million, or 31.7%, to $225.2 million in 1999 from
$171.1 million in 1998. The Life Sciences Group's operations accounted for 99.1%
of the Company's net revenue for the 1999 period as compared to 99.8% for the
1998 period. The Life Sciences Group generated net revenue of $223.2 million, up
$52.4 million, or 30.7%, from last year. The growth in the Life Sciences Group
operations was primarily attributable to an increase in the size, scope and
number of contracts in the global CRO Phase II-IV division. PPD ATP contributed
net revenue of $10.5 million to the Life Sciences Group for the nine months
ended September 30, 1999. The Discovery Sciences Group generated net revenue of
$2.0 million, an increase of $1.7 million, from the prior year. The growth in
the Discovery Sciences Group operations was primarily attributable to an
increase in the number of contracts in the combinatorial chemistry division and
a joint development and license agreement (signed during the fourth quarter of
1998, which extends through the second quarter of 2000) in the functional
genomics division.

   Total direct costs increased 28.9% to $114.0 million from $88.5 million last
year and decreased as a percentage of net revenue to 50.6% from 51.7%. Life
Sciences Group direct cost increased to $108.4 million in 1999 as compared to
$85.8 million in 1998. The increase in direct cost dollars resulted primarily
from increased personnel costs due to the increase in size and number of
contracts in the Global CRO Phase II-IV division. PPD ATP contributed direct
costs of $5.2 million to the Life Sciences Group for the nine months ended
September 30, 1999. Life Sciences Group direct costs decreased as a percentage
of related net revenue to 48.6% from 50.3%. This decrease was principally due to
the different mix of contracts performed and a focused effort to control costs,
while revenues increased. Discovery Sciences Group direct costs increased to
$5.6 million in 1999 as compared to $2.6 million in 1998. This increase was
primarily due to the $2.6 million in additional costs associated with GenuPro in
the 1999 period.

   SG&A expenses increased 22.0% to $70.3 million in 1999 from $57.6 million in
the same period last year. The increase is primarily attributable to investment
in additional personnel to support the Company's expanding operations. As a
percentage of net revenue, SG&A expenses decreased to 31.2% from 33.7% last
year.

   Total depreciation and amortization expense of $10.9 million in 1999 was $1.9
million, or 20.6%, higher than the same period last year. The increase was
related to the depreciation of the increased investment in property and
equipment due primarily to the acquisition of PPD ATP in March 1999 and the
Company's growth. The Company's capital expenditures were $18.7 million in the
nine months ended September 30, 1999. Expanded capabilities in the Company's
labs accounted for approximately 33.5% of this capital investment, while the
enhancement and expansion of information technology capacities accounted for
approximately 29.7% of this capital investment. The remaining capital
expenditures were predominately incurred in connection with the expansion of
existing operations and the opening of new offices.

   During the first quarter of 1999, the Company recorded merger costs of $0.2
million in connection with acquisition of PPD ATP. These costs were primarily
cash expenses, such as legal and accounting fees related to this transaction.

   The Company recorded an acquired in-process research and development charge
of $3.2 million in the second quarter of 1998 as a result of the purchase of a
license to six genitourinary compounds. The Company immediately expensed the
acquired in-process research and development costs because the compounds were in
the initial phase of research and development and had no alternative future use.

   Operating income improved to $29.8 million for the nine months ended
September 30, 1999, from $12.8 million for the nine months ended September 30,
1998. Excluding merger costs and acquired in-process research and development
costs, the Company's adjusted operating income of $30.0 million in 1999 was
88.6% higher than adjusted operating income of $15.9 million for the same period
last year. As a percentage of net revenue, the adjusted operating income
improved to 13.3% in 1999 from 9.3% for the same period last year. These
increases were primarily due to the Company's focus on controlling its costs,
while revenues increased.

   Net interest and other income increased $0.4 million, rising to $3.3 million
for the nine months ending September 30, 1999 from $2.9 million for the nine
months ending September 30, 1998. Excluding the gain related to the sale of CCCR
in 1998, net interest and other income of $3.3 million was $1.5 million higher
than the prior year for the same period. The improvement was primarily the
result of the increase in interest income of $1.4 million. During the first nine
months of 1999, the Company received $1.2 million in interest income related to
                                       12
<PAGE>
the notes receivable from CCCR and Environ Holdings. The Company expects to
receive an additional $0.4 million in the fourth quarter of 1999 from these
notes.

   The Company recorded a loss from discontinued operations, net of income tax
expense, related to its environmental sciences segment, of $0.4 million in 1999,
as compared to income of $3.5 million in the first nine months of 1998. The
environmental sciences segment was sold on January 31, 1999.

   The provision for income taxes increased $6.7 million to $12.9 million for
the nine months ended September 30, 1999, as compared to $6.2 million for the
nine months ended September 30, 1998 due to the Company's increase in earnings
before income taxes. As a percentage of income before income taxes, the
provision for income taxes has remained relatively consistent at 38.8% for 1999
and 39.2% for 1998.

   The net income of $19.9 million represents an improvement of $6.8 million
over the same period a year ago. Net income per diluted share of $0.80 compares
to net income per diluted share of $0.56 for the same period last year.
Excluding non-recurring items (merger costs, acquired in-process research and
development costs, the gain on sale of CCCR and operations of the discontinued
division), the Company's income from continuing operations of $20.3 million was
112.7% higher than last year's income from continuing operations of $9.5
million. On an equivalent earnings-per-share basis, net income per diluted share
(excluding non-recurring costs) of $0.81 compares to net income per diluted
share of $0.41 for the same period last year computed on 1.6 million less shares
outstanding.

LIQUIDITY AND CAPITAL RESOURCES

   As of September 30, 1999, the Company had $41.4 million of cash and cash
equivalents on hand. The Company has historically funded its operations and
growth, including acquisitions, with cash flow from operations, borrowings and
through the sale of the Company's stock.

   For the nine months ended September 30, 1999, the Company experienced a net
increase in cash from operating activities of $25.3 million. For the period, net
income of $19.9 million plus net noncash changes to net income for depreciation
and amortization of $11.1 million were partially offset by the net change of
$5.7 million in operating assets and liabilities (which included a $11.4 million
increase in billed and unbilled receivables, primarily as a result of growth in
net revenue). The number of days revenue outstanding in accounts receivable and
unbilled services, net of unearned income, were 65.7 and 75.8 days (excluding
operations and related balance sheet accounts of the discontinued division at
September 30, 1998) as of September 30, 1999 and September 30, 1998,
respectively. The decrease is a result of a focused effort by management on
collections.

   For the nine months ended September 30, 1999, the Company's investing
activities used $17.5 million in cash. Capital expenditures of $18.7 million and
the investment in PPGx of $3.5 million were partially offset by net cash
received in the sale of business of $3.4 million, $0.7 million in cash received
with the acquisition of PPD ATP and $0.5 million from the repayment of note
receivable.

   For the nine months ended September 30, 1999, the Company's financing
activities provided $1.0 million in cash, as net proceeds from stock option
exercises of $6.2 million and the proceeds from long-term debt of $0.9 million
related primarily to PPD ATP's building loan were partially offset by $6.2
million in net repayment of long-term debt.

   Working capital as of September 30, 1999 was $99.0 million compared to $93.9
million at December 31, 1998. Excluding the environmental sciences segment from
the balance sheet as of December 31, 1998, the adjusted working capital would
have been $74.6 million. The increase in adjusted working capital was due
primarily to an increase in cash and cash equivalents of $7.3 million and an
increase in accounts receivable and unbilled services, net, of $13.5 million.

   In June 1998, the Company obtained a $50.0 million revolving credit facility
with First Union National Bank. Interest accrues on amounts borrowed at a
floating rate currently equal to LIBOR plus 0.625% per year. Indebtedness under
the line is unsecured and subject to certain covenants relating to financial
ratios and tangible net worth. The unused portion of the loan is available to
provide working capital and for general corporate purposes. As of September 30,
1999, the Company had $11.5 million reserved under this facility in the form of
a letter of credit. This credit facility expires in June 2000, at which time any
outstanding balance is due.

   In August 1999, the Company renegotiated a credit facility for $50.0 million
with Wachovia Bank, N.A. Interest accrues on amounts borrowed at a floating rate
currently equal to LIBOR plus 0.625% per year.
                                       13

<PAGE>
Indebtedness under the line is unsecured and subject to certain covenants
relating to financial ratios and tangible net worth. The unused portion of the
loan is available to provide working capital and for general corporate purposes.
This credit facility expires in August 2000.

   In the fourth quarter of 1999, the Company entered into a short sale and
repurchase of U.S. Treasury bonds with a face value of $520 million based on
management's expectations that interest rates will rise between the date the
transaction was entered into and its maturity date of May 15, 2000. The Company
will be required to record these financial instruments at their net fair value
on each reporting date, with any changes in the fair value recorded as either
interest income or interest expense. As a result of entering into this
transaction, the Company expects to generate a capital gain of approximately
$11,000,000, which will allow the Company to utilize its capital loss
carryforwards, which previously had been fully reserved. The Company was
required to make a margin deposit of $2.6 million related to this transaction.

   The Company expects to continue expanding its operations through internal
growth and strategic acquisitions. The Company expects such activities will be
funded from existing cash, cash flow from operations, borrowings under its
credit facilities and through the sale of the Company's stock. The Company
believes that such sources of cash will be sufficient to fund the Company's
operations for at least the next 12 months. The Company is currently evaluating
a number of acquisitions and other growth opportunities which may require
additional external financing, and the Company may from time to time seek to
obtain funds from public or private issuances of equity or debt securities.

YEAR 2000 COMPLIANCE

   The Year 2000 issue is the result of computer programs having been written
using two digits, rather than four, to define the applicable year. As a result,
computer systems and/or software used by many companies in a very wide variety
of applications may experience operating difficulties unless they are modified
or upgraded to adequately process information involving, related to or dependent
upon the four digit field. Significant uncertainty exists concerning the scope
and magnitude of problems associated with the Year 2000.

   The Company recognizes the need to ensure its operations will not be
adversely impacted by Year 2000 failures and has established an internal review
team to address the Year 2000 issue that encompasses operating and
administrative areas of the Company. During the first quarter of 1997, a team of
experienced information technology staff was assigned to work with Company
personnel to identify and resolve significant Year 2000 issues in a timely
manner. In addition, executive management regularly monitors the status of the
Company's Year 2000 remediation plans. The process includes an inventory and
assessment of affected equipment and software, development of remediation plans,
execution of those plans and testing of all technology affected by this issue.
In addition, the Company is engaged in assessing the Year 2000 issue with
significant suppliers and clients.

   At September 30, 1999, the assessment process was 100% complete for all
equipment (including computer hardware and software technology) used internally
by the Company as compared to 95% at December 31, 1998. As of September 30,
1999, remediation and testing was 100% complete for critical systems and 99%
complete for non-critical systems. All systems, regardless of whether they
require remediation, are being tested to ensure Year 2000 compliance. The
Company expects to continue this process for all-new equipment and software on
an ongoing basis. The Company has assessed its significant suppliers in North
America and Europe to determine the extent to which the Company is vulnerable to
third party failure to remediate Year 2000 compliance problems. The Company is
in regular communication with key suppliers and clients and responds promptly to
all requests for information regarding Year 2000 compliance. Although there can
be no assurance, based on current information available, management believes
that it will be able to perform all services and provide all products it
currently offers without any material adverse effects arising from failure to
remediate deficiencies arising from Year 2000.

   External and internal costs specifically associated with applying vendor
upgrades, testing and modifying internal use software for Year 2000 compliance
are expensed as incurred. The Company pays for Year 2000 expenses with cash from
operating activities. The percentage of the Company's information technology
budget used for remediation was approximately 11% in 1998 and 5% in 1999. As of
September 30, 1999, the Company had spent approximately $1.70 million on Year
2000 compliance, and expects to spend an additional $0.05 million to complete
the compliance process. Of the total amount that the Company expects to spend,
approximately $1.25 million is attributable to internal labor costs for
assessment and testing. Although internal resources have been dedicated to Year
2000 efforts, work has been spread across all areas and there has been no
material delay in any major projects.
                                       14
<PAGE>

   The failure to correct a material Year 2000 problem could result in an
interruption in, or a failure of, certain normal business activities or
operations. Such failures could materially and adversely affect the Company's
results of operations, liquidity and financial condition. If unexpected issues
arise causing delays in the clinical studies being performed for these clients,
the Company will have a specified period of time to correct those issues. If not
corrected, the client can modify or terminate its contract with the Company. The
Company believes that modification or termination of one or more client
contracts represents the most reasonably likely worst case scenario, which might
arise from material Year 2000 compliance failures. Business contingency plans
have been developed to minimize the impact of outages across our locations
worldwide. In addition, a plan has been developed to handle yearend activities
to ensure all critical functions are verified and operational prior to the start
of business in the new year. Due to the general uncertainty inherent in the Year
2000 problem, resulting in part from the uncertainty of the Year 2000 readiness
of third-party suppliers and clients, the Company is unable to determine at this
time whether the consequences of Year 2000 failures will have a material impact
on its results of operations, liquidity or financial condition.

   The Company has significantly reduced the level of uncertainty about Year
2000 problems and, in particular, about Year 2000 compliance and readiness of
its internal systems and key suppliers. The Company also believes that its
information technology staff, which has been instrumental in the Company's Year
2000 compliance efforts, may be able to mitigate many Year 2000 problems.
However, the Company will continue to assess and develop contingency plans for a
possible Year 2000 failure as it completes its testing of Year 2000 issues.

   The cost of the Year 2000 compliance project and the time by which the
Company expects to complete its Year 2000 assessment and remediation are
estimates, based on numerous assumptions, including the continued availability
of funding resources and third-party modification plans. However, there can be
no guarantee that these estimates are accurate and will be achieved, and actual
results could differ significantly from management's expectations. In addition,
there is no guarantee that the Company's evaluation of the most likely effects
of a material Year 2000 compliance failure is correct, or that its plan to
address such failure will be adequate. In either instance, the effect upon the
Company's financial condition could be material.

INFLATION

   The Company believes the effects of inflation have not had a material adverse
effect on its results of operations or financial condition.

EXCHANGE RATE FLUCTUATIONS AND EXCHANGE CONTROLS

   The vast majority of the Company's contracts are entered into by the
Company's United States or United Kingdom subsidiaries. The contracts entered
into by the United States subsidiaries are almost always denominated in United
States dollars.

   Contracts between the Company's United Kingdom subsidiaries and their clients
are generally denominated in pounds sterling. Substantially all of the United
Kingdom subsidiaries' expenses, such as salaries, services, materials and
supplies, are paid in pounds sterling. However, the Company's consolidated
financial statements are denominated in dollars and, accordingly, changes in the
exchange rate between the pound sterling and the dollar will affect the
translation of such subsidiaries' financial results into dollars for purposes of
reporting the Company's consolidated financial results, and also affect the
amounts in dollars actually received by the Company from such subsidiaries.

   The Company currently participates in only a small number of transactions
involving multiple currencies. In most of those situations, contractual
provisions either limit or reduce the translation risk. Financial statement
translation has not, to date, been material to the Company's balance sheet. The
reasons for this are that the majority of international operations are located
in the United Kingdom, which traditionally has had a relatively stable currency,
and that international operations have not accounted for a significant portion
of total operations (approximately 15%). It is anticipated that those conditions
will persist for at least the next 12 months.

   There are no material exchange controls currently in effect in any country in
which the Company's subsidiaries conduct operations on the payment of dividends
or otherwise restricting the transfer of funds outside such countries by a
company resident in such countries. Although the Company performs services for
clients located in a number of foreign jurisdictions, to date, the Company has
not experienced any difficulties in receiving funds remitted from foreign
countries. However, if any such jurisdictions were to impose or modify existing
exchange control restrictions on the remittance of funds to the Company, such
restrictions could have an adverse effect on the Company's business.

                                       15
<PAGE>

POTENTIAL VOLATILITY OF QUARTERLY OPERATING RESULTS AND STOCK PRICE

   The Company's quarterly operating results are subject to volatility due to
such factors as the commencement, completion or cancellation of large contracts,
progress of ongoing contracts, acquisitions, the timing of start-up expenses for
new offices, management of growth and changes in the mix of services. Because a
large percentage of the Company's operating costs are relatively fixed,
variations in the timing and progress of large contracts can materially affect
quarterly results. To the extent the Company's international business increases,
exchange rate fluctuations and other international business risks may also
influence these results. The Company believes that comparisons of its quarterly
financial results are not necessarily meaningful and should not be relied upon
as an indication of future performance. However, fluctuations in quarterly
results or other factors beyond the Company's control, such as changes in
earnings estimates by analysts, market conditions in the CRO, pharmaceutical and
biotechnology industries and general economic conditions could affect the market
price of the Common Stock in a manner unrelated to the longer-term operating
performance of the Company.

ITEM 3.  QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

   The Company is exposed to foreign currency risk by virtue of its
international operations. The Company conducts business in several foreign
countries and approximately 15% of the Company's net revenues for both the
three-month periods ended September 30, 1999 and 1998 were derived outside the
United States. Funds generated by each subsidiary of the Company are generally
reinvested in the country where they are earned. The operations in the United
Kingdom generated approximately 33% and 51% of the Company's revenue from
foreign operations for the three months ended September 30, 1999 and 1998,
respectively. Accordingly, some exposure exists to potentially adverse movements
in the pound sterling. The United Kingdom has traditionally had a relatively
stable currency. It is anticipated that those conditions will persist for at
least the next 12 months.

   Because the Company's consolidated financial statements are denominated in
U.S. dollars changes in the exchange rates between the Company's subsidiaries
local currency and the U.S. dollar affect the translation of such subsidiaries'
financial results into U.S. dollars for purposes of reporting the Company's
consolidated financial results. Translation adjustments are reported as a
component of accumulated other comprehensive income (loss) as a separate
component of shareholders' equity. Financial statement translation has not, to
date, been material to the Company's balance sheet. Such adjustments might in
the future be material to the Company's financial statements.

                                       16
<PAGE>

PART II.  OTHER INFORMATION


ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K

(a)     EXHIBITS

        Exhibit 10.133  Fourth Amendment, dated July 6, 1999, to Lease Agreement
                        dated July 9, 1997 between PPD Development, Inc.
                        (formerly known as PPD Pharmaco, Inc.) and
                        Weeks Realty, L.P.

        Exhibit 10.134  Pharmaceutical Product Development, Inc. Equity
                        Compensation Plan as amended and restated effective
                        May 12, 1999.

        Exhibit 10.135  Amendment to Employment Agreement dated August 20, 1999
                        between PPD Development, Inc. and Mark A. Sirgo.

        Exhibit 10.136  Termination of Employment Agreement dated September 14,
                        1999 between Pharmaceutical Product Development, Inc.
                        and Thomas D'Alonzo.

        Exhibit 27      Financial Data Schedule (for SEC use only)

(b)     REPORTS ON FORM 8-K

        No reports on Form 8-K were filed during the quarter ended September 30,
        1999.

                                       17
<PAGE>

SIGNATURES

   Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.


                                     PHARMACEUTICAL PRODUCT DEVELOPMENT, INC.
                                    ------------------------------------------
                                                 (Registrant)



                                By  /s/           Rudy C. Howard
                                      ----------------------------------------
                                      Chief Financial Officer, Vice President
                                             of Finance and Treasurer
                                          (Principal Financial Officer)

Date:  November 15, 1999

                                       18