PPD expands microbiology lab testing biz

PPD will offer an expanded range of microbiology testing services in a bid to boost its central laboratory business.

The US contract research organisation (CRO) has added several new microbiology methodologies – including bacteriology, mycobacteriology and bioterrorism pathogen testing - to those on offer at its central laboratories in the US, Belgium, Singapore and China.

PPD said the extra services will help it meet ‘growing client need’ for infectious disease testing, which it described as being ‘one of the largest therapeutic areas for clinical research and development.’

Elena Logan, PPD’s VP of global central labs, said: “Microbiology is an important component of laboratory testing for infectious disease,” adding that “strengthening our microbiology capabilities demonstrates PPD’s commitment to deliver a full range of high quality global central lab services.”

The expansion comes after a mixed six months for PPD's laboratory services business, which saw operating income fall $3.5m (€2.5m) and $3.8m, respectively, for the last two quarters due to project cancellations, postponements and higher investment costs.

The move also follows a week after Raymond James analyst Sandy Draper said the ‘underperformance’ of PPD’s laboratory unit made the firm less attractive to potential investors than CRO sector rivals like Parexel and Icon.

We were moderately disappointed with PPD’s lack of additional progression on the margin front, as clinical development margins stagnated and laboratory services profitability was impacted by underperformance within BioDuro and vaccine laboratory units”, Draper said.