On April 15, 2021, the Wall Street Journal reported that Thermo Fisher, an American medical device giant would acquire PPD, a world-renowned CRO company for $17.4 billion. Thermo Fisher said in response to the acquisition that the company hopes to be able to add more strength to its pharmaceutical business.

In fact, consolidation in the CRO industry is accelerating. In February, a CRO firm ICON announced it would buy PRA Health Sciences, a US CRO, for $12bn in stock and cash. After the combination, Icon ranks third in revenue ($11.36 billion), behind LabCorp and IQvia, according to its published 2020 financial results. PPD came in fifth with $4.68 billion.

If the acquisition is completed, Thermo Fisher will become one of the Top5 CRO companies in the world.

Some analysts predict that Thermo Fisher's acquisition of PPD will add billions of dollars to its market value and give it a chance to become one of the world's largest CRO companies. PPD has a market value of $16.05 billion at the time of writing, while IQVIA, the global CRO giant, has a market value of $41.63 billion.

Thermo Fisher is a leading supplier to the pharmaceutical and biotech industries. The acquisition of PPD will provide Thermo Fisher with a drug development platform, strong patient recruitment capabilities and laboratory services. Thermo Fisher is also likely to benefit from cost synergies resulting from the acquisition, with significant cost reductions over the next three years. 

Founded in 1985, PPD, headquartered in Wilmington, North Carolina, is the world's leading clinical research organization. Provides a wide range of integrated drug development, laboratory and life cycle management services. With a market capitalization of $13.6 billion, the company provides clinical development and laboratory services to the pharmaceutical industry, biotechnology, medical devices, and government agencies. Thermo Fisher has a market capitalization of about $188 billion. PPD has offices in 47 countries and employs more than 26,000 professionals worldwide.