Talk of whether PPD (NYSE:PPDI) is for sale has prompted the clinical research organization to publicly state it not in talks with any other CRO regarding a merger or acquisition.
But Wilmington, North Carolina-based PPD did say that its board of directors has asked management to review the company’s strategic plan and capital structure “with a focus on unlocking value for shareholders.” The company did not specify what kind of actions this review is considering.
In a prepared statement, PPD founder and Executive Chairman Fred Eshelman said that the company has a policy of not commenting on speculation. But he added that “we want to assure our customers and employees that the company remains focused on executing its long-term business strategy.”
With the Rise of AI, What IP Disputes in Healthcare Are Likely to Emerge?
Munck Wilson Mandala Partner Greg Howison shared his perspective on some of the legal ramifications around AI, IP, connected devices and the data they generate, in response to emailed questions.
PPD shares reached a high of $32.35 on Monday morning, up more than 16 percent over Friday’s close following a Wall Street Journal report, citing unnamed sources, saying that the CRO is exploring a sale. The Journal said that the CRO could attract interest from private equity as well as other CROs. Eshelman quashed those comments.
“We are not engaged in any discussions around a combination with other clinical research providers,” he said. “We remain laser-focused on executing our business and serving our customers with the quality and service they expect and deserve.”
PPD is the third largest CRO by revenue with $1.4 billion in 2010 sales, behind just Covance (NYSE:CVD) and Durham, North Carolina-based Quintiles.