PPD buys Merck & Co's vaccine testing lab

US contract research organization PPD has entered into a strategic collaboration with drug major Merck & Co involving vaccine testing and  assay development. Under the terms of the deal, PPD has purchased  Merck's 130,000 square-foot vaccine testing laboratory and related  equipment in Wayne, Pennsylvania, and hired the nearly 80 professionals  who operate this state-of-the-art facility. As part of this  collaboration, PPD will be providing Merck with assay development and  immunogenicity testing services to support the firm's vaccine portfolio  over a period of five years.

In addition, PPD entered into an agreement with Merck that significantly  expands its existing central laboratory service relationship. Under this  accord, the CRO will be providing traditional central laboratory and  sample storage services to Merck for its clinical development activities  over a period of five years. The vaccine testing facility significantly  expands PPD's overall global central laboratory business, adding  world-class vaccine and biologic testing, assay development and sample  storage capabilities to its current suite of laboratory services. PPD  says it  plans to invest in the newly-acquired lab by developing new  technologies and assays to expand its immunochemistry and oncology  vaccine testing, as well as biologics lab services for other  biopharmaceutical clients.