PPD added $7 billion to Thermo Fisher revenues in 2022
Thermo Fisher Scientific says clinical research services firm PPD was a growth driver in 2022, both in terms of revenue and an expanded customer base.
CEO Marc Casper shared details of the impact its acquisition of PPD has had on its business in its fourth quarter report, telling analysts that integration of the clinical services firm had been a success.
“For the full year, PPD delivered core organic growth in the high teens, generating over $7 billion in revenue and contributing over $2 to our adjusted earnings per share.
“The combination of a great first year performance and excellent progress on our synergy realization is delivering very strong returns for our shareholders that is well ahead of the deal model,” he said.
Casper added that “from a customer lens, the acquisition has further elevated our trusted partner status as customers are realizing significant value in partnering with our team to advance a scientific idea to an approved medicine.”
“Integration has gone smoothly. Customers really see the obvious fit with the company, and it really has driven very strong momentum. And our colleagues are very excited about the combination.”
He added that PPD’s the book-to-bill was very positive and that authorizations were very strong in the quarter and the year.
Lab business boost
Thermo Fisher completed the takeover of PPD in December 2021. The CRO is now part of the firm’s laboratory products and biopharma services segment.
And, according to chief financial officer Stephen Williamson, PPD was a growth driver for the segment in the final three months of 2022.
“In the Laboratory Products and Biopharma Services segment, Q4 reported revenue increased 42%. Organic growth was 11% and the impact of acquisitions was 35%. During Q4, organic revenue growth in this segment was led by the Pharma Services business
“PPD at Clinical Research business continued to perform very well, and during the quarter it delivered over 20% core organic revenue growth and contributed $1.9 billion of revenue to the segment” Williamson said.
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