PPD Enters into Strategic Collaboration with Merck
News Jan 06, 2009
Under the agreements, PPD purchased Merck’s 130,000 square-foot vaccine testing laboratory and related equipment in Wayne, Penn., and hired the nearly 80 Merck professionals who operate the facility.
As part of this collaboration, PPD will be providing Merck with assay development and immunogenicity testing services to support Merck’s vaccine portfolio over a period of five years.
In addition, PPD entered into an agreement with Merck that significantly expands its existing central laboratory service relationship. Under this agreement, PPD will be providing traditional central laboratory and sample storage services to Merck for its clinical development activities over a period of five years.
The acquisition of Merck’s vaccine testing facility expands PPD’s overall global central laboratory business, adding world-class vaccine and biologic testing, assay development and sample storage capabilities to its current suite of laboratory services.
PPD plans to invest in the newly acquired lab by developing new technologies and assays to expand its immunochemistry and oncology vaccine testing services as well as biologics lab services for other biopharmaceutical clients.
“We believe strategic outsourcing is key to the future of R&D and represents an innovative approach to the challenges facing our pharmaceutical and biotechnology clients,” said Fred Eshelman, chief executive officer of PPD. “This collaboration with Merck represents a unique opportunity for us to acquire leading scientific talent and state-of-the-art facilities, expand an existing relationship with a long-time client and offer a new service line to other customers in the growing vaccine market.”
The transaction closed on December 31, 2008. Financial details of the transaction were not disclosed.