WILMINGTON, N.C.--(BUSINESS WIRE)--PPD, Inc. (NASDAQ:PPDI) today announced it has signed an agreement to acquire BioDuro LLC, a drug discovery outsourcing company that provides a broad range of integrated services to biopharmaceutical companies. The acquisition will expand PPD’s drug development capabilities in China.
Founded in 2005, BioDuro operates a state-of-the-art, 110,000-square-foot laboratory in Beijing. Most of its approximately 660 employees are based in China, where it provides deep scientific expertise in medicinal chemistry, biology, pharmacology, drug metabolism, pharmacokinetic and safety services. The company offers extensive, fully integrated scientific resources and services to synthesize novel compounds and optimize those compounds to generate drug development candidates.
BioDuro currently works with nine of the 12 largest pharmaceutical companies. After the acquisition closes, PPD and BioDuro will perform a broad range of research and development services for large pharmaceutical clients from early stage through Phase IV.
“Under the leadership of Masood Tayebi and the entire senior management group, BioDuro has built an exceptional team of researchers and scientists whose experience extends across a broad range of drug discovery,” said David Grange, chief executive officer of PPD.
Grange added, “This acquisition will strengthen PPD’s presence in China and our ability to provide clients an extensive range of services in this country. It will also position us well to provide services for the growing global discovery outsourcing industry and to be the full-service CRO of choice in China.”
According to Barclays Capital, biopharmaceutical companies spend $20.2 billion on drug discovery research annually, with $1.6 billion being outsourced today. That number is expected to grow to $5 to $10 billion in the next three to five years.
Masood Tayebi, founder and chairman of BioDuro said, “PPD shares our commitment for delivering world-class, quality services to clients. Combining our drug discovery expertise with PPD’s global drug development resources will allow us to move our clients’ programs from drug discovery into late-stage drug development and build upon our strong growth in China.”
PPD recently acquired Excel PharmaStudies, the market leader and one of the largest contract research organizations in China. The Excel acquisition strengthens PPD’s Phase II-IV clinical, data management, biostatistics, regulatory and quality assurance services and provides additional capability and expertise in this rapidly growing market. After the acquisition of BioDuro is completed, PPD will employ nearly 1,000 people in China, making it the largest CRO to offer clinical development and discovery services in the country.
PPD opened its Beijing office in 2003, from which it provides a broad range of clinical development services. In 2008, it expanded its global central lab services into China through an exclusive agreement with Peking Union Lawke Biomedical Development Limited. The agreement allows PPD to provide biopharmaceutical clients a full range of highly customized central lab services. In addition to Beijing and Hong Kong, PPD has offices in India, Singapore, Taiwan, Thailand, Korea and Japan and has more than 400 people in Asia Pacific outside of China.
The acquisition is subject to various closing conditions and is expected to close in the fourth quarter of 2009.
PPD is a leading global contract research organization providing discovery, development and post-approval services as well as compound partnering programs. Our clients and partners include pharmaceutical, biotechnology, medical device, academic and government organizations. With offices in 38 countries and more than 10,000 professionals worldwide, PPD applies innovative technologies, therapeutic expertise and a commitment to quality to help its clients and partners maximize returns on their R&D investments and accelerate the delivery of safe and effective therapeutics to patients. For more information, visit our Web site at http://www.ppdi.com.
Except for historical information, all of the statements, expectations and assumptions contained in this news release, including expectations and assumptions about the agreement to acquire BioDuro and its contribution to PPD and PPD’s future growth prospects in the Asia Pacific region, are forward-looking statements that involve a number of risks and uncertainties. Although PPD attempts to be accurate in making these forward-looking statements, it is possible that future circumstances might differ from the assumptions on which such statements are based. In addition, other important factors which could cause results to differ materially include the following: risks that the acquisition of BioDuro might not close; risks associated with acquisitions and investments, such as integration challenges and impairments; the ability to attract and retain key personnel; risks associated with and dependence on collaborative relationships; rapid technological advances that make our products and services less competitive; competition within the outsourcing industry; success in sales growth; loss of large contracts; increased cancellation rates; economic conditions and outsourcing trends in the pharmaceutical, biotechnology, medical device, academic and government industry segments; risks that we may not continue our dividend policy; and the other risk factors set forth from time to time in the SEC filings for PPD, copies of which are available free of charge upon request from the PPD investor relations department.
Contacts
PPD, Inc. Media: Sue Ann Pentecost, 919-456-5890, sueann.pentecost@ppdi.com or Analysts/Investors: Luke Heagle, 910-558-7585, luke.heagle@ppdi.com
