JPMorgan Partners and PPD Join Forces to Form Pharmaceutical Development Company

17-Oct-2001

JPMorgan Partners, the private equity group of J.P. Morgan Chase and Co., and PPD, Inc. (Nasdaq: PPDI), today announced that they have partnered to form a new company, Apothogen, Inc., that will acquire, develop and commercialize pharmaceutical products. Under terms of the arrangement, JPMorgan Partners and PPD have committed to provide financing to Apothogen through the purchase of its preferred stock. Ernest Mario, Ph.D., non-executive chairman of PPD and former chairman and chief executive officer of Alza Corporation that recently merged with Johnson & Johnson, Inc., will serve as Apothogen's chairman. Fred Eshelman, chief executive officer of PPD, stated, "We are delighted to have the opportunity to expand PPD's virtual development strategy through this powerful combination of PPD's discovery and development expertise, the financial strength and healthcare expertise of JPMorgan Partners and Dr. Mario's proven track record of success. I believe that Apothogen, under Dr. Mario's leadership and with the support of JPMorgan Partners, will serve to further diversify PPD's business model and will be a vehicle for value creation for PPD shareholders." "JPMorgan Partners has long been committed to investing in life sciences companies. Apothogen is an excellent example of a superb management team working well with top pharmaceutical experts to develop and market new and innovative products," said Mitchell Blutt, executive partner of JPMorgan Partners. Dr. Mario stated, "Apothogen is being created to occupy the space between startup, underfinanced discovery and development companies and big Pharma corporations whose R & D targets are often restricted to potential end-product revenues of $500 million or more per year. Apothogen will bring focus, financing and vast experience to this process which I believe will result in the creation of important new pharmaceutical products." For a more detailed description of PPD's investment in and relationship with Apothogen and its stockholders, please refer to the Current Report on Form 8-K filed by PPD with the SEC on or about the date hereof.

https://www.chemeurope.com/en/news/5480/jpmorgan-partners-and-ppd-join-forces-to-form-pharmaceutical-development-company.html