PPD to Acquire InnoPharm Ltd
Strengthening PPD's presence in Eastern Europe
February 06, 2008
WILMINGTON, N.C., Feb. 6 -- PPD, Inc. today announced it has signed an agreement to purchase InnoPharm Ltd., an independent contract research organization, or CRO, based in Smolensk, Russia. The acquisition will expand PPD's global reach with established offices in both Russia and Ukraine.
One of the first CROs in Russia, InnoPharm was a pioneer in the implementation of good clinical practice (GCP) in the former Soviet Union and offers Phase II-IV clinical trials support, data management and biostatistics services to pharmaceutical and biotechnology companies. In addition to its headquarters in Smolensk, InnoPharm has offices in Moscow and St. Petersburg, Russia, and Kiev, Ukraine, and employs more than 300 people.
"With more than 143 million people in Russia alone, Eastern Europe is a high-growth market for clinical trials and a region PPD has targeted for expansion," said Fred Eshelman, chief executive officer of PPD. "We have subcontracted work to InnoPharm since 2004 and have great confidence in the team's clinical research capabilities and its commitment to quality. In addition to extending our geographic footprint and enhancing our ability to conduct global studies for our clients, we are gaining a high-caliber group of clinical research professionals."
The acquisition is expected to close in the second quarter of 2008, subject to customary closing conditions and obtaining regulatory approvals.
After the acquisition closes, Sergey Sudilovsky, M.D., Ph.D., currently director general of InnoPharm, will oversee operations in Russia and Ukraine for PPD. Dr. Sudilovsky has more than 15 years of experience with InnoPharm, having spent the past 10 years as director general.
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 30 countries and more than 10,200 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 and its contribution to PPD, 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 associated with acquisitions and investments, such as integration and impairments; international business risks; the ability to attract and retain key personnel; economic conditions and outsourcing trends in the pharmaceutical, biotechnology, medical device, academic and government industry segments; competition within the outsourcing industry; continued success in sales growth; loss of large contracts; increased cancellation rates; risks associated with and dependence on collaborative relationships; 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.