Thermo Fisher Scientific Inc. Nears a deal to buy pharmaceutical testing company PPD Inc. for more than $ 15 billion, according to people familiar with the case, in what would be the latest collaboration between companies conducting clinical trials and other services for drug manufacturers.
The companies could strike a deal this week, assuming the talks don’t fall apart, the people said. PPD has a market value of approximately $ 13.6 billion, while Thermo Fisher’s is $ 187 billion.
Based in Wilmington, NC, PPD is what is called a contract research organization, a type of company that conducts the studies to test experimental drugs developed by pharmaceutical companies. PPD also provides laboratory services.
The contract research industry has expanded in recent years as drug manufacturers put money into the development of new cancer and other treatments. While CROs, as the firms are known, have been in pain from disrupting pharmaceutical trials in the early days of the pandemic, activity is returning, bolstered by drug manufacturers and government-funded studies testing Covid-19 drugs and vaccines. The industry is poised to further benefit from an increased interest in treatments and preventive measures for future pandemics.
PPD reported sales of $ 4.7 billion last year, up 16%. Net income tripled to just over $ 160 million.