PPD second quarter revenue skyrockets by 56%, net income positive

The global CRO continues strong financial performance as proposed mega merger with Thermo Fischer looms.

For the three months ending 30 June 2021, the Wilmington-based company reported revenue of $1,575.5 million, a 55.8% jump compared to the $1,010.9 million made during the three months ended June 30, 2020. The contract research organization’s net income came in at $58.7 million, compared to the net loss of $9.1 million suffered during the comparable quarter last year when the industry was nearly brought to a halt by the COVID-19 pandemic. “I’m delighted to report that our strong momentum across the business continued in the second quarter,” said David Simmons, PPD’s chairman and CEO. The upbeat results come as the CRO giant prepares for the closure of its proposed merger with Thermo Fischer, announced back in April. The transaction is expected to be completed by the end of 2021.

Its largest segment, the Clinical Development Services brought in revenue of $1,300.2 million for the quarter, which was a massive increase of 59.5%, while the Laboratory Services segment revenue came in at $275.3 million – a 40.7% jump compared to the three months ended June 30, 2020. For the six months ended June 30, the company’s revenue increased by 41.8% to $2,953.9 million, compared to the $2,083.4 million reported for the six months up to the 30th of June last year. At the segment level, $2,417.6 million made during the six-month period came from the Clinical Development Services. The Laboratory Services’ top line for the same period was $536.3 million. This represented a 43.4% and 35.0% for the Clinical Development Services and Laboratory Services, respectively.