PPD Continues Rapid China Growth with Another CRO Acquisition

| About: Pharmaceutical Product (PPDI)

PPD, Inc. (NSDQ: PPDI) is quickly building up its China-based CRO capability. The company announced it will acquire BioDuro LLC, a CRO based in Beijing whose 660 employees focus on drug discovery (pre-clinical) services. The acquisition complements PPD’s purchase of Excel PharmaStudies earlier this month. Excel is a clinical CRO that conducts Phase II through Phase IV clinical trials from its offices throughout China. PPD did not disclose financial details of either transaction.

BioDuro has grown quickly. Founded in 2005 by Masood Tayebi, it operates a 110,000-square-foot laboratory in Beijing. All of its operations are in China, though it maintains a corporate headquarters in San Diego. The company specializes in medicinal chemistry, biology, pharmacology, drug metabolism, pharmacokinetic and safety services. It has the resources to synthesize novel compounds and optimize those compounds to generate drug development candidates.

BioDuro currently works with nine of the twelve 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. Together with Excel and BioDuro, PPD will have more than 1,000 employees in China. It will be the largest CRO to offer clinical development and discovery services in the country.

PPD opened its Beijing office in 2003 to provide 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. It has more than 400 people in Asia Pacific outside of China.

Worldwide, PPD has offices in 38 countries and more than 10,000 professional staff. It has a market capitalization of $2.5 billion.

Disclosure: None.