PPD to Acquire Excel PharmaStudies
Acquisition will significantly expand PPD's presence in China
WILMINGTON, N.C. (October 27, 2009) - PPD, Inc. (Nasdaq: PPDI) today announced it has entered into an agreement to acquire Excel PharmaStudies, Inc., the market leader and one of the largest contract research organizations in China, providing PPD additional capacity and expertise in this rapidly growing market. It also significantly increases its employee and client base in Asia Pacific.
The acquisition strengthens PPD's ability to offer Phase II-IV clinical, data management, biostatistics, regulatory and quality assurance services under a variety of operating models, ranging from functional to full service. Combining its drug development expertise with its global central laboratory operations in Beijing and Singapore uniquely positions PPD to deliver a broad set of services to biopharmaceutical companies in China, Japan and throughout the region. Excel will operate as a wholly-owned subsidiary of PPD.
"Biopharmaceutical companies are increasingly including China and Japan in their drug development programs because of the rapid growth of these markets," said David Grange, chief executive officer, PPD. "Excel brings a solid reputation, broad client base and regulatory expertise and is an important part of our continued expansion in this fast-growing region."
Founded in 2000, Excel provides a comprehensive range of Phase II-IV clinical services, including regulatory affairs, patient recruitment, protocol design, feasibility studies, good clinical practice training and program management. Excel has worked with many of the world's leading biopharmaceutical companies from more than 15 cities throughout China and operates a vaccine research center and biometrics center, both of which are located in Taizhou.
After the acquisition closes, Excel's more than 300 employees will join PPD, and Mark Engel, co-founder, will work exclusively with PPD as a strategic consultant. Mr. Engel said, "We look forward to combining Excel's strong operational expertise and relationships in China with PPD's global discovery, development and laboratory capabilities to deliver a comprehensive range of services that meets our clients' complete drug development needs."
PPD opened its Beijing office in 2003, where 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 (PUL). The agreement allowed 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 currently employs more than 400 people in Asia Pacific.
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 closing of this transaction and its contributions 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 closing for this acquisition is delayed or does not occur at all; 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; 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 associated with the development and commercialization of drugs, including earnings dilution and obtaining regulatory approval; rapid technological advances that make our products and services less competitive; 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.