Double-digit revenue growth drove a 15 per cent year-on-year increase in operating profit at PPD. New business wins and backlog were also up year-on-year, while the cancellation rate dipped.
A weak element was, again, the vaccine and biologics unit which posted lower than expected sales and put pressure on the laboratory services business. PPD expects laboratory services’ margins to improve in the fourth quarter as revenues grow.
By then PPD may be a private company. In a regulatory filing last week PPD said the possible rival bidder, reported to be inVentiv Health, had withdrawn its interest. A few days later the period for finding a better offer ended.
PPD is holding a shareholder meeting this month and expects the deal to close in the fourth quarter.