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ICON

A Stock Split Can Make You Forget

Wednesday, February 15, 2006 11:06 AM

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.

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