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 most recent link between companies conducting clinical trials and providing other services to drug manufacturers.
The companies could finalize an agreement immediately after this week, assuming the talks do not fall apart, people said. PPD has a market value of about $ 13.6 billion, while Thermo Fisher is $ 187 billion.
PPD, based in Wilmington, NC, is a so-called contract research organization, a type of company that conducts experimental drug testing studies developed by pharmaceutical companies. PPD also provides laboratory services.
The contract research industry has expanded in recent years as drug manufacturers invest money in the development of new cancer treatments and other treatments. While CROs, as companies are known, have been hurt as pharmaceutical trials were discontinued in the early days of the pandemic, activity has returned, boosted by government-funded and government-funded studies testing Covid drugs and vaccines. 19. The industry is ready to continue to benefit from increased interest in treatments and preventative measures for any future pandemic.
PPD reported revenue of $ 4.7 billion last year, up 16 percent. Its net income has tripled to just over $ 160 million.