Acquisitive LabCorp in $8B PPD play: Reuters

PPD has been said to be seeking an $8 billion sale for more than a year.

Medical testing company LabCorp is prepared to spend $8 billion on one of the largest CROs in the world, coming hot on the heels of it buying up New Jersey-headquartered Covance in an acquisition worth just over $6 billion in 2015.

This is according to a report from Reuters, quoting anonymous people “familiar with the matter,” who added that LabCorp “was just one of the parties participating in an auction” for North Carolina-based PPD.

The private company has also seen interest from buyout firms, the people said. This comes nearly a year after reports from Bloomberg said that LabCorp had been seeking to acquire another major CRO in the form of INC Research, which changed CEOs last year.

Whitepaper Download

Reducing the Complexity and Costs of Channel Planning and Logistics

How can you make the process of bringing your product to market less complex while also reducing costs? This Whitepaper identifies opportunities to simplify channel strategies for biopharma companies, their customers and patients. Discover how you can deliver savings and innovation to your business.

Rumors about a PPD sale have been in the pipe for more than a year, with the $8 billion price tag and desire to be sold being reported by Reuters in December 2015. Just before Christmas, the WSJ also said the CRO was still looking for a deal using that ballpark figure. The CRO is not commenting on the reports. 

This comes amid a flurry of CRO M&As in 2016, with the biggest being the marriage of IMS and Quintiles, making a major hybrid $18 billion company with expanded offerings to biopharma.

Read more on

Suggested Articles

Bristol Myers Squibb may have bounced Jounce from its roster of inherited partners, but it’s hanging onto Anokion, a Swiss autoimmune-focused biotech.

The immunoassay will measure neurofilament light chain protein levels, found in the blood and cerebrospinal fluid, and linked to nerve damage.

The priority review action date sets Bristol Myers up to win approval for the bluebird-partnered anti-BCMA CAR-T therapy in late March.