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November 6 - 19, 2020
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Greater Wilmington Business Journal
| HEALTH CARE |
With vaccine work, PPD sees growth in Q3
W
ith key indicators – such as earnings, new orders and order backlog – on the rise, PPD Chairman and CEO David Simmons announced that the third quarter of 2020 has been a “strong quarter” for the global contract research organization based in Wilmington. “We have continued to focus on executing for our customers as we navigate through the pandemic,” Simmons said in a recent news release. “This is evident in our continued momentum with double-digit growth in net authorizations, revenue and adjusted EBITDA [earnings before interest, taxes, depreciation and amortization] over last year. “Furthermore, we are proud that PPD is continuing to play a leading role in the development of vaccines and therapies for COVID-19, now having won more than 140 awards for work associated with the virus.” PPD Inc. (Nasdaq: PPD) has helped facilitate work as a partner with Moderna, which has one of the COVID-19 vaccines in development.
PHOTO C/O PPD
Drug development: Moderna, with assistance from PPD, is conducting its third phase of a study to develop a potential vaccine against COVID-19.
Massachusetts-based Moderna Inc. announced in late October the completion of the enrollment of 30,000 participants in what the firm calls its Phase 3 COVE study. “To date, more than 25,650 participants have received their second vaccination,” stated a Moderna news
release. PPD has been “essential to the successful execution to date of the COVE study,” Moderna officials said in the release. PPD also supported Moderna’s Phase 2 study. In PPD’s earnings call Oct. 28,
Simmons said that COVID-related work has represented about 20% of its authorizations this past quarter. Even disregarding that segment of PPD’s work, growth was up in Q3 year over year, he said, attributing that growth partly to the company’s accelerated pace in starting work after contract awards. PPD finished the quarter with $803 million in cash and total liquidity of $1.1 billion, “which represents the strongest quarter-end liquidity position in over 10 years,” officials stated. Assuming no significant reduction in site access, patient enrollment and other key operating metrics in Q4 as a result of COVID-19, and that there are no major delays or cancellations of COVID-19 studies during the fourth quarter from safety concerns or other issues, PPD expects revenues for the fourth quarter to be in the $1.25 billion to nearly $1.3 billion range, a year-over-year increase of between 20% and 24%. Looking at its fiscal year 2020 as a whole, PPD expects revenues of
BETTER CARE THROUGH
CLINICAL RESEARCH For almost 50 years, Wilmington Health has been a part of the community, and for over 20 years, our research division, WH Research, has led the region in clinical trials. No other area provider is as experienced or as respected. Our goal is to ensure the best medical care for our patients, while maintaining an active role in the development of new treatments and medications. We’re at the forefront of medicine, so that our patients are at the forefront of TRUE Care.
WILMINGTONHEALTH.COM/RESEARCH
