Background: An isoscalar $pn$ pair is expected to emerge in nuclei that have similar proton and neutron numbers and it may be a candidate for a deuteron ``cluster.'' There is, however, no experimental evidence for it.Purpose: The purpose of this paper is to construct a new reaction model for the $(p,pd)$ reaction including the deuteron breakup in the elementary process and the deuteron reformation by the final-state interactions. How these processes contribute to the observables of the reaction is investigated.Methods: The distorted wave impulse approximation is extended twofold. The elementary processes of the $(p,pd)$, i.e., the $p\text{\ensuremath{-}}d$ elastic scattering and the $d(p,p)pn$ reaction, are described with an impulse picture employing a nucleon-nucleon effective interaction. The three-body scattering waves in the final state of the $(p,pd)$ reaction are calculated with the continuum-discretized coupled-channels method. The triple-differential cross section (TDX) of the $(p,pd)$ reaction is calculated with the new model.Results: The elementary processes are described reasonably well with the present model. As for the $(p,pd)$ reaction, the deuteron reformation can either increase or decrease the TDX height depending on the interference between the elastic and breakup channels of deuteron, while the back-coupling effect always decreases it.Conclusions: It is shown that the deuteron reformation significantly changes the TDX of the $(p,pd)$ reaction through the interference. It is important to include this process to quantitatively discuss the $(p,pd)$ cross sections in view of the deuteron formation in nuclei. For more quantitative discussion regarding the experimental data, further improvement will be necessary.