Talk of whether PPD (NYSE:PPDI) is for sale has prompted the clinical research organization to publicly state it not in talks with any other CRO regarding a merger or acquisition.
But Wilmington, North Carolina-based PPD did say that its board of directors has asked management to review the company’s strategic plan and capital structure “with a focus on unlocking value for shareholders.” The company did not specify what kind of actions this review is considering.
In a prepared statement, PPD founder and Executive Chairman Fred Eshelman said that the company has a policy of not commenting on speculation. But he added that “we want to assure our customers and employees that the company remains focused on executing its long-term business strategy.”
PPD shares reached a high of $32.35 on Monday morning, up more than 16 percent over Friday’s close following a Wall Street Journal report, citing unnamed sources, saying that the CRO is exploring a sale. The Journal said that the CRO could attract interest from private equity as well as other CROs. Eshelman quashed those comments.
“We are not engaged in any discussions around a combination with other clinical research providers,” he said. “We remain laser-focused on executing our business and serving our customers with the quality and service they expect and deserve.”
PPD is the third largest CRO by revenue with $1.4 billion in 2010 sales, behind just Covance (NYSE:CVD) and Durham, North Carolina-based Quintiles.
