While rumors persist about drug researcher PPD’s possible takeover by a private equity group, an analyst report this week suggests the company has room to expand as its clients increase their research and development funding, staff writer Tori Stilwell reports.

More of PPD's clients plan to boost spending on the clinical part of drug development, the company's main business, according to Garen Sarafian, an analyst with Citigroup Global Markets who follows the company.

“That naturally favors PPDI,” Sarafian said, referring to the company’s stock ticker. He also cited the company’s “lean” cost structure and strong leadership as an explanation for why he started coverage of the company with a “buy” rating.

Campbell Alliance, a Raleigh-based pharmaceutical consulting firm, has agreed to be acquired by inVentiv Health of New Jersey.

Campbell, which was founded in 1997, employs more than 250 people, including 85 in Raleigh. The company will remain in Raleigh and operate as a subsidiary of inVentiv.

Campbell's founders, John Campbell and his wife Ann Campbell, will continue to run the company.

Quintiles Transnational is seeking more deals where it invests directly in promising experimental drugs nearing final stages of development.

Traditionally, Quintiles contracts with drug makers for a fee, but the Durham company's NovaQuest division is quickly becoming a major part of Quintiles' total business, Business Week reported.

Investing directly in new drugs represents more risk if the products stumble, but a much bigger potential payoff when they're successful. It's a strategy shift that comes as Quintiles' main contract-research business is seeing slower growth.

Here's a safe bet: PPD investors hope today is brighter than Wednesday.

Shares of the Wilmington drug-research company, which employs 1,800 in the Triangle, fell 15 percent Wednesday. The drop was triggered by weaker-than-expected quarterly results released late Tuesday, and a downgrade by an analyst with research firm Robert W. Baird.

The stock has lost more than half its value in the past year, as investors fret that a slump among PPD's pharmaceutical customers is hurting its business of testing new medicines, especially in North America.

One bit of good news: There aren't additional layoffs planned. PPD announced earlier this month it was cutting 270 jobs across the country, including fewer than 80 in Wilmington.

"We have an extremely talented global workforce, and there are no plans for additional reductions in force," David Grange, who took over as CEO on July 1, said on a conference call.

PPD shares fell $3.23 to close at $18.85 on Wednesday.