Wednesday, February 15, 2006
PPD’s two-for-one stock split is good news for the top global clinical research organizations. Investors attracted to the sector by the company’s split announcement Feb. 8 can focus on PPD and other top CROs rather than the sideshow embattled SFBC has become. When new investors look at top CROs such as PPD, Quintiles , PRA, ICON, Parexel and Covance, they will see the pharmaceutical outsourcing industry ready to consolidate around a handful or so of these companies.These global CROs have a big advantage over the estimated 1,000 other small CROs throughout the world. They have international infrastructure in place to conduct complex clinical trials in thousands of patients at sites across multiple countries.That global presence is not easy to build and represents a barrier to entry for small CROs trying to roll up into a global player.