UPDATE 1-PPD Q3 EPS meets Street, cuts '09 view on poor bookings

* Q3 EPS 32 cents in line with estimates

* Q3 revenue falls 13 pct to $341.1 mln

* New bookings of $425.5 mln

* Cuts 2009 EPS and revenue view

* To buy Chinese rival

Oct 27 (Reuters) - Clinical-research service provider Pharmaceutical Product Development Inc (PPDI.O) reported quarterly profit in line with analysts' estimates, and cut its 2009 earnings and revenue view on poor bookings and significantly high project cancellations.

Separately, the company, which provides late-stage drug research to drugmakers, said it would spin off its compound partnering business from its core contract research business and buy Chinese rival Excel PharmaStudies Inc. [ID:nWNAB5250] [ID:nWNAB5253]

It did not provide financial details of the deal, which would add 300 employees to its workforce and is expected to close in the fourth quarter.

Net income for the third quarter was $37.7 million, or 32 cents a share, compared to $51.2 million, or 43 cents a share, in the year-ago quarter.

Revenue fell 13 percent to $341.1 million.

Bookings for the quarter stood at $425.5 million, and cancellations were $160.3 million.

For 2009, the company now sees earnings of $1.38 to $1.40 a share, down from its prior forecast of $1.54 to $1.60 a share.

Last week, bigger and more diversified peer Covance Inc (CVD.N), which is considered a bellwether for contract research organizations, had warned of a modest fourth quarter and a weak performance in its early-stage development services.

Shares of the company closed at $23.36 Tuesday on Nasdaq. (Reporting by Esha Dey in Bangalore; Editing by Anne Pallivathuckal)