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.


Like this story? Subscribe to FierceBiotech!

Biopharma is a fast-growing world where big ideas come along every day. Our subscribers rely on FierceBiotech as their must-read source for the latest news, analysis and data in the world of biotech and pharma R&D. Sign up today to get biotech news and updates delivered to your inbox and read on the go.

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.


Suggested Articles

The FDA warned healthcare providers about cybersecurity vulnerabilities within certain clinical information systems made by GE Healthcare.

Weeks after receiving FDA approval for its in-office eardrum tube device, Tusker Medical has been picked up by Smith & Nephew for an undisclosed sum.

What a difference a day makes in biotech.