PPDI sells Piedmont R&D center; acquires Magen BioSciences

04 April 2009

Pharmaceutical Product Development Inc. (PPDI) yesterday said it is selling its wholly-owned subsidiary Piedmont Research Center (PRC) to Charles River Laboratories International Inc for $46 million. The transaction is expected to close during the second quarter.

PRC focuses on preclinical research and evaluation of anticancer agents and therapies cancer treatments.

In a separate deal, PPDI has acquired Magen BioSciences Inc, a biotechnology company focused on dermatologic therapies based in Waltham, Massachusetts. for $14.5 million in cash. The acquisition will expand PPDI's compound partnering programme into dermatology, in the indications of psoriasis, atopic dermatitis and acne.

Despite its tremendous growth over the years, we feel that Piedmont's operations will be a better long-term strategic fit for Charles River's preclinical research business, said Fred Eshelman, chief executive officer of PPDI.

''Following the completion of this divestiture, we intend to continue to focus on our core service businesses and compound partnering programmes to drive future revenue and earnings growth," Eshelman said.

PPDI is a leading global contract research organisation providing discovery, development and post-approval services as well as compound partnering programmes. It has offices in 33 countries and approximately 10,500 professionals worldwide.