Clinical-research service provider Pharmaceutical Product Development Inc (PPDI.O) sold a pre-clinical research unit to rival Charles River Laboratories International Inc (CRL.N) for $46 million and acquired a biotechnology company for $14.5 million.
PPD, which provides later-stage clinical research services, said the cash deals would add to its second-quarter profit by 11 cents a share, while both third and fourth quarters would be hurt by 4 cents each.
For 2009, PPD expects a gain of 12 cents a share from the sale of its Piedmont Research Center unit.
Rival Charles River, which is mostly focused on providing pre-clinical and early-stage research services to drugmakers, expects the deal to be neutral to earnings in 2009.
The Piedmont deal is expected to close in the second quarter, the companies said.
The smaller deal, in which PPD bought Waltham, Massachusetts-based biotech firm Magen BioSciences Inc, gives PPD an access to the company's license to develop and commercialize pre-clinical compounds discovered by Eli Lilly & Co (LLY.N).
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