Thermo Fisher Scientific Inc. is approaching a deal to buy pharmaceutical testing company PPD Inc. for more than $ 15 billion, according to people familiar with the matter, in what would be the last link between companies conducting clinical trials and providing other services for pharmacists.
Companies could end a deal as early as this week, assuming the talks don’t fall apart, people said. PPD has a market value of about $ 13.6 billion, while Thermo Fisher is worth $ 187 billion.
PPD, based in Wilmington, North Carolina, is an organization called Contract Research, a type of company that conducts experimental drug testing studies developed by pharmaceutical companies. PPD also offers laboratory services.
The contract research industry has expanded in recent years as drug manufacturers invest money in the development of new cancer and other treatments. Although CROs, as companies are known, were injured while pharmaceutical trials were disrupted in the early days of the pandemic, activity has once again been boosted by studies funded by drug and government drug manufacturers testing and Covid-19 vaccines. The industry is about to benefit from greater interest in treatments and preventative measures for future pandemics.
PPD recorded revenue of $ 4.7 billion last year, up 16%. Its net profit tripled to just over $ 160 million.