PPD sets out $1B IPO plans as it launches new China labs
Summary
No, that headline is not in error: The folks over at Renaissance Capital see private-cum-public-cum-private-cum-public CRO PPD putting down a very conservative $100 million IPO attempt, but it could raise a cool $1 billion. The pharma services major filed with the Securities and Exchange Commission to raise up to $100 million in an IPO, but Renaissance Capital says: “However, the deal size is likely a placeholder for an IPO that we estimate could raise $1 billion.” The CRO went private all the way back in 2011 when it was bought by Carlyle Group and Hellman & Friedman in a $3.9 billion deal. Two years ago, it recapitalized, with the owners expanding the company’s ownership to include two new investors: a subsidiary of the Abu Dhabi Investment Authority and an affiliate of GIC, Singapore’s sovereign wealth fund. As well as an attempted IPO, PPD says it is also boosting its operations and leadership team in China to “provide enhanced clinical development, laboratory, regulatory, site conduct, patient access and post-approval services for international and China-based biopharmaceutical companies.” It hopes to delve deeper into the often tumultuous but potentially major China market; PPD already has a presence there with clinical development offices in Beijing and Shanghai but will now double down on these, while also opening new offices in Guangzhou and Shenyang. Going forward, the company said in a statement: “In 2020, PPD Laboratories plans to open a multifunctional lab in China offering bioanalytical, biomarker and vaccine sciences services.