04.03.09
PPD, Inc. has entered into a definitive agreement to sell its wholly-owned subsidiary Piedmont Research Center, LLC to Charles River Laboratories for $46.0 million in cash. Piedmont Research Center provides preclinical research and evaluation of anticancer agents and therapies.
"Under Beth Hollister's leadership, Piedmont Research Center has been a solid contributor to our discovery sciences segment since we acquired this business in 2002," said Fred Eshelman, chief executive officer of PPD. "Although this unit has grown nicely over the years, Piedmont Research Center is somewhat of a niche operation for PPD, and its In vivo and In vitro services should be a better long-term strategic fit for Charles River's preclinical research business. Following the completion of this divestiture, we intend to continue to focus on our core service businesses and compound partnering programs to drive future revenue and earnings growth."
James C. Foster, chairman, president and chief executive officer of Charles River said, "As pharmaceutical and Biotechnology companies increasingly choose strategic outsourcing as the means to accelerate their drug development efforts, they need to rely on their service partners to provide scientific depth and expertise in therapeutic areas. The addition of PRC’s expertise, particularly in oncology, expands Charles River Discovery and Imaging Services’ portfolio of Efficacy testing services to better support our clients’ needs. PRC’s long history as a trusted provider to the Biopharmaceutical industry fits extremely well with Charles River’s focus on deep scientific expertise and exceptional client service. We welcome PRC to the Charles River family."
PPD anticipates the divestiture will reduce its projected full year 2009 discovery sciences segment revenue by approximately $19.0 million. The transaction is expected to close during the second quarter.
Additionally, PPD has acquired Magen BioSciences, Inc., a biotechnology company focused on dermatologic therapies based in Waltham, MA, for $14.5 million in cash. The acquisition expands PPD's compound partnering program into dermatology, initially in the indications of psoriasis, atopic dermatitis and acne.
The move gains PPD a pipeline of compounds through Magen's exclusive license to develop and commercialize preclinical compounds discovered by Eli Lilly & Co. for dermatologic Therapeutics . The acquisition also provides PPD with R&D capability to screen dermatologic compounds to determine efficacy and safety.
"By combining Magen's unique Dermal biology expertise and innovative pipeline of compounds with our extensive development experience, we hope to develop compounds that address unmet needs for major dermatological disorders," said Fred Eshelman, chief executive officer of PPD. "The market is strong and growing for dermatologic products, which generally present fewer development hurdles than other therapeutics and have a more straightforward path to regulatory approval."
Magen's Sandra Luikenhuis, Ph.D. joined PPD with the acquisition and will oversee development of these compounds in her role as executive director, dermatology. "We see significant potential for the discovery and development of new treatments in dermatology, where few novel products are currently being developed," said Dr. Luikenhuis. "Magen's experience will be valuable in helping PPD evaluate future opportunities in this growing therapeutic area."
For the remainder of 2009, PPD anticipates that Magen's R&D activities will generate a loss from operations of approximately $15.2 million.
"Under Beth Hollister's leadership, Piedmont Research Center has been a solid contributor to our discovery sciences segment since we acquired this business in 2002," said Fred Eshelman, chief executive officer of PPD. "Although this unit has grown nicely over the years, Piedmont Research Center is somewhat of a niche operation for PPD, and its In vivo and In vitro services should be a better long-term strategic fit for Charles River's preclinical research business. Following the completion of this divestiture, we intend to continue to focus on our core service businesses and compound partnering programs to drive future revenue and earnings growth."
James C. Foster, chairman, president and chief executive officer of Charles River said, "As pharmaceutical and Biotechnology companies increasingly choose strategic outsourcing as the means to accelerate their drug development efforts, they need to rely on their service partners to provide scientific depth and expertise in therapeutic areas. The addition of PRC’s expertise, particularly in oncology, expands Charles River Discovery and Imaging Services’ portfolio of Efficacy testing services to better support our clients’ needs. PRC’s long history as a trusted provider to the Biopharmaceutical industry fits extremely well with Charles River’s focus on deep scientific expertise and exceptional client service. We welcome PRC to the Charles River family."
PPD anticipates the divestiture will reduce its projected full year 2009 discovery sciences segment revenue by approximately $19.0 million. The transaction is expected to close during the second quarter.
Additionally, PPD has acquired Magen BioSciences, Inc., a biotechnology company focused on dermatologic therapies based in Waltham, MA, for $14.5 million in cash. The acquisition expands PPD's compound partnering program into dermatology, initially in the indications of psoriasis, atopic dermatitis and acne.
The move gains PPD a pipeline of compounds through Magen's exclusive license to develop and commercialize preclinical compounds discovered by Eli Lilly & Co. for dermatologic Therapeutics . The acquisition also provides PPD with R&D capability to screen dermatologic compounds to determine efficacy and safety.
"By combining Magen's unique Dermal biology expertise and innovative pipeline of compounds with our extensive development experience, we hope to develop compounds that address unmet needs for major dermatological disorders," said Fred Eshelman, chief executive officer of PPD. "The market is strong and growing for dermatologic products, which generally present fewer development hurdles than other therapeutics and have a more straightforward path to regulatory approval."
Magen's Sandra Luikenhuis, Ph.D. joined PPD with the acquisition and will oversee development of these compounds in her role as executive director, dermatology. "We see significant potential for the discovery and development of new treatments in dermatology, where few novel products are currently being developed," said Dr. Luikenhuis. "Magen's experience will be valuable in helping PPD evaluate future opportunities in this growing therapeutic area."
For the remainder of 2009, PPD anticipates that Magen's R&D activities will generate a loss from operations of approximately $15.2 million.
