Thermo Fisher Completes $17.4 Billion Acquisition of PPD to Strengthen Clinical Development Capabilities
Thermo Fisher Scientific
Biotechnology Product Developer
Pharmaceutical Product Development
Global Contract Research Organization (CRO)
On December 8, 2021, Thermo Fisher Scientific (NYSE: TMO, hereinafter referred to as: Thermo Fisher), the world leader in scientific services, announced,Completed the acquisition of PPD, Inc. (Nasdaq: PPD) for $17.4 billion.PPD, Inc. is a global leading company providing drug research and development services for the biopharmaceutical and biotechnology industries.
Marc N. Casper
Chairman, President and CEO of Thermo Fisher Scientific Inc.
"We are very pleased to officially welcome colleagues from PPD to Thermo Fisher Scientific."Relying on PPD's leading clinical research services, Thermo Fisher will further expand its value proposition in the biotechnology and pharmaceutical fields, bringing various therapies that change patients' lives to market faster and benefiting patients worldwide."
As previously announced, the transaction is expected to contribute $1.50 to Thermo Fisher's adjusted earnings per share in 2022. More details regarding the impact of the acquisition in 2021 will be disclosed during Thermo Fisher’s fourth-quarter earnings call in early 2022.
Thermo Fisher Scientific Expects to Achieve Approximately $125 Million in Synergies by the Third Year After the Completion of the Acquisition, Including Approximately $75 Million in Cost Synergies and Approximately $50 Million in Adjusted Operating Income from Revenue Synergies. In this acquisition, Thermo Fisher Scientific will also assume approximately $3 billion in net debt from Pharmaceutical Product Development, Inc. (PPD). Upon the closing of the transaction, all assumed debt will be repaid.
With the addition of PPD, Thermo Fisher Scientific will provide world-class services in the clinical development field, covering the entire process from drug discovery, assessment of safety, efficacy, and medical outcomes, to drug clinical trial management, as well as drug development and production.
With the completion of the transaction, PPD ceased trading before the opening of the U.S. Nasdaq on December 8. PPD will become part of Thermo Fisher's global laboratory products and services business.