PPD to Spin off Compound Partnering Business
- Posted on 31 December 2009
PPD has announced its decision to proceed with preparations to spin off its compound partnering business from its core contract research organization, or CRO, business.
The spin-off will result in two independent public companies. The CRO business will continue to operate under the PPD name and will be focused solely on its drug discovery and development service businesses. It will no longer be coupled with the earnings dilution from the company's compound partnering business.
The compound partnering business will have the opportunity to focus on developing and commercializing its drug candidates and to access external capital, if needed – without any constraints associated with operating in combination with the CRO business.
PPD expects to capitalize the compound partnering company with approximately US$100 million in cash.
The transaction expected to be completed in the middle of 2010. Approval by PPD's shareholders is not required for completion of the spin-off.
