Thermo Fisher is finalizing a deal to buy pharmaceutical-testing company PPD Inc. for more than $15 billion, according to the Wall Street Journal. The deal would be the latest tie-up among companies that run clinical trials and provide other services to drug makers.
PPD has a market value of $13.6 billion, while Thermo Fisher has $187 billion.
Thermo had $32 billion in sales last year, a 26 % increase, while shares have risen sharply over the past few years and are up by almost 50% in the past 12 months.
PPD reported $4.7 billion in revenue last year, up 16%, while its net income tripled to just over $160 million.
Hellman & Friedman LLC and Carlyle Group Inc., with 38% and 16% of PPD shares, respectively, agreed to take the company privately in 2011 but returned it to the public in 2020.
PPD shares plummeted early into the pandemic but have since recovered, surging more than 13% after the deal with Thermo was announced.
The companies could finalize the deal as soon as this week if talks don’t fall apart.
Thermo Fisher stock is currently declining as PPD gain. TMO: NYSE is down 0.48% PPD: NASDAQ is up 1.10%
