Merck and PPD Partner in Outsourcing Deal

Clinical Trials Today reports that CRO PPD has entered into a strategic collaboration with Merck to expand its global laboratory business. Under the agreement, PPD will have access to Merck’s 130,000 square foot facility in Wayne, PA as well as 80 employees who will operate there.

In return, PPD will provide Merck with range of assay development and immunogenicity testing services as well as traditional central laboratory and sample storage services over the next five years. This is the beginning of a trend of strategic agreements we have seen between CROs and big pharma. We have seen this in August 2008 when Covance partnered with Eli Lilly in a $1.6 billion contract research deal.

Will we see this trend continue between CROs and big pharma in 2009?