PPD to Acquire BioDuro

Wilmington, N.C.

PPD, Inc. announced it has signed an agreement to acquire BioDuro LLC, a drug discovery outsourcing company that provides a broad range of integrated services to biopharmaceutical companies. The acquisition will expand PPD's drug development capabilities in China.

Founded in 2005, BioDuro operates a state-of-the-art, 110,000-square-foot laboratory in Beijing. Most of its approximately 660 employees are based in China, where it provides deep scientific expertise in medicinal chemistry, biology, pharmacology, drug metabolism, pharmacokinetic and safety services. The company offers extensive, fully integrated scientific resources and services to synthesize novel compounds and optimize those compounds to generate drug development candidates. BioDuro currently works with nine of the 12 largest pharmaceutical companies. After the acquisition closes, PPD and BioDuro will perform a broad range of research and development services for large pharmaceutical clients from early stage through Phase IV.

"Under the leadership of Masood Tayebi and the entire senior management group, BioDuro has built an exceptional team of researchers and scientists whose experience extends across a broad range of drug discovery," said David Grange, chief executive officer of PPD.

According to Barclays Capital, biopharmaceutical companies spend $20.2 billion on drug discovery research annually, with $1.6 billion being outsourced today. That number is expected to grow to $5 to $10 billion in the next three to five years.

PPD recently acquired Excel PharmaStudies, one of the largest contract research organizations in China. The Excel acquisition strengthens PPD's Phase II-IV clinical, data management, biostatistics, regulatory and quality assurance services and provides additional capability and expertise in this rapidly growing market. After the acquisition of BioDuro is completed, PPD will employ nearly 1,000 people in China, making it the largest CRO to offer clinical development and discovery services in the country.

PPD opened its Beijing office in 2003, from which it provides a broad range of clinical development services. In 2008, it expanded its global central lab services into China through an exclusive agreement with Peking Union Lawke Biomedical Development Limited. The agreement allows PPD to provide biopharmaceutical clients a full range of highly customized central lab services. In addition to Beijing and Hong Kong, PPD has offices in India, Singapore, Taiwan, Thailand, Korea and Japan and has more than 400 people in Asia Pacific outside of China. The acquisition is subject to various closing conditions and is expected to close in the fourth quarter of 2009.