WILMINGTON, NC (WECT) - PPD reversed course Monday afternoon and made a public statement about a Wall Street Journal report on a possible sale.
The Wilmington-based company released the following statement from Executive Chairman Fred Eshelman.
"While the company generally has a policy of not commenting on speculation, we want to assure our customers and employees that the company remains focused on executing its long-term business strategy," Fred Eshelman said in an emailed statement. "We are absolutely dedicated to performing for our customers and committed to executing the important research programs that they have entrusted to us. We are looking at our long-term plan and our capital structure to see if there are any actions, which might create value at this time. We are not engaged in any discussions around a combination with other clinical research providers. We remain laser-focused on executing our business and serving our customers with the quality and service they expect and deserve."
Earlier in the day, an area spokesperson for PPD told WECT.com the company will not comment on rumors or speculation when it comes to the future of the company.
The Wall Street Journal reported Sunday night that PPD is exploring a potential sale, according to its sources.
The article from the WSJ states that PPD could get bids from private-equity and larger clinical-research providers, but that PPD could still change its plans as well.
You can read the article here, although you do need a subscription to the WSJ for the full story: http://tinyurl.com/3bd8nhu
The contract research organization that offers drug discovery, development and lifecycle management services, operates its worldwide headquarters in Wilmington.
The Greater Wilmington Chamber of Commerce lists PPD as the 7th largest employer in the Wilmington area with 1,500 workers. John Hinnant with Wilmington Downtown Inc. said any type of sale could affect the entire region.
"They're a good cooperate citizen, to large employers in the city and county," explained Hinnant. "The hospital has a very narrow field but with them having science and technology, they help attract other employers, which helps improve the community all the way around."
Wilmington City Council Member Ronald Sparks said city officials have plans to use PPD as an anchor to improve the northside of downtown Wilmington.
"There's residential development plans, other retail being planned in the area," explained Sparks. "We'd like for them to be apart of that process and decision making. Get input from then in terms of employees being able to benefit."
The recent report in the WSJ has some people wondering how the potential sale would affect the community. Sparks said PPD gives heavily to non-profits in the area. He's concerned how they'd be impacted if a sale is made.
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