According to Daniel Arias, an analyst at Stifel, PPD is a “good strategic fit” for Thermo Fisher given the increasing demand for services provided by contract research organizations. Thermo Fisher, in announcing the acquisition, highlighted PPD’s drug development platform and strengths in laboratory services and patient recruitment.
Thermo Fisher expects the deal to immediately boost adjusted earnings per share, and estimates it will result in about $125 million worth of savings by the third year. PPD brought in $4.7 billion in revenue in 2020, and has more than 26,000 employees in 47 countries. Thermo Fisher, meanwhile had $32 billion in revenue last year and employs more than 80,000 people.
The announcement comes shortly after a failed attempt by Thermo Fisher to acquire molecular diagnostics company Qiagen. Thermo Fisher initially offered $11.5 billion for the company and then raised its bid, but was still unable to persuade Qiagen stockholders to tender their shares.
In a note to clients, Arias wrote that the integration of Patheon — a contract developer and manufacturer that Thermo Fisher bought for $7 billion in 2017 — should serve as a model for the latest acquisition. READ MORE
By Kristin Jensen
Source: biopharmadive.com
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