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Limits to CRO growth? A major CRO ventures further into proprietary drug development.

Publication: Pharmaceutical Technology Europe
Publication Date: 01-JUN-09
Format: Online
Delivery: Immediate Online Access

Article Excerpt
Is there a point in a CRO's life when contract services begin to look less attractive as a strategic business opportunity? Executives at PPD (NC, USA) seem to think so. In just one day in early April, the CRO announced two moves--an acquisition and a divestiture--that indicate the company is looking in a direction other than contract services for long-term growth.

The acquisition was Magen BioSciences (MA, USA), a biopharmaceutical company with a pipeline of dermatology candidates it has in-licensed from Eli Lilly and Company (IN, USA). Magen, which PPD acquired for $14.5 million ([euro]10.7 million) in cash, also has discovery-related capabilities for screening compounds for efficacy and safety.

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