Wilmington-based PPD Inc. has informed that it has entered into a strategic collaboration with Merck & Co., Inc., involving vaccine testing and assay development.

PPD is a leading global contract research organization providing discovery, development and post-approval services as well as compound partnering programs.

Under the arrangement, PPD bought Merck's 130,000 square-feet vaccine testing laboratory and related equipment in Wayne, Penn., and hired the nearly 80 Merck professionals who operate this state-of-the-art facility.

As part of this collaboration, PPD will provide Merck with assay development and immunogenicity testing services to support Merck's vaccine portfolio over a period of five years.

Other than this, PPD has also signed an agreement with Merck, which would significantly expand its existing central laboratory service relationship.

Under this agreement, PPD will provide traditional central laboratory and sample storage services to Merck for its clinical development activities over a period of five years.

The company officials believe that acquisition of Merck's vaccine testing facility significantly expands PPD's overall global central laboratory business, adding world-class vaccine and biologic testing, assay development and sample storage capabilities to its current suite of laboratory services.

The transaction closed on December 31, 2008. However, the financial terms regarding the deal were not disclosed.