Contract Research Organization PPD has seen its revenue nudge up in the second quarter as it navigates trial disruption while helping run one of the world’s most closely watched vaccine trials.
Revenue from the CRO crept up by 1.4% to $1.01 billion compared to Q2 2019, no small feat when so much of the CRO industry’s business has been hit by COVID chaos, and also saw net authorizations of $1.05 billion, representing 12.4% growth over the year-ago period.
Its growth was both helped and hindered by COVID, with its Clinical Development Services unit seeing revenue down to $815.3 million, a fall of 2.2% and no surprise it’s down, but with COVID testing its Laboratory Services unit saw revenue jump to $195.7 million, a 19.9%, growth compared to the three months ended June 30, 2019.
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Its six months revenue are healthier, with a more than 6% raise in revenue across the business, but this is mainly the positives from Q1, which was not as badly hit as Q2, likely the hardest quarter for CROs this year.
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It’s also been heavily involved in running trials for COVID-19, including Moderna and the NIH’s attempt at an mRNA vaccine that is currently a frontrunner for a future approval. Phase 3 tests started last month and are looking to recruit 30,000 people.
“We are very pleased with our commercial and financial results for the second quarter,” said David Simmons, PPD’s chairman and CEO.
“Our team has done an excellent job delivering for our customers despite the challenges presented by the COVID-19 pandemic. We are continuing to take necessary precautions to ensure the safety of our employees and patients while resuming delayed activities on both ongoing and new studies where possible. As the life sciences industry and regulators come together to develop vaccines and therapies for COVID-19, PPD is proud to have won more than 85 awards related to the virus.”