NEW YORK (AP) — Private-equity firm Carlyle Group is in
talks to acquire contract drug developer Pharmaceutical Product Development
Inc., according to a report published Monday.

Carlyle has edged out several other private-equity firms and
entered into exclusive talks with the Wilmington,
N.C. drug maker, according to
Bloomberg News, which cited five unnamed persons with knowledge of the
discussions.

Blackstone Group LP, KKR & Co., and Hellman &
Friedman LL were among the other firms that were interested in buying the PPD,
according to the report.

Most of the bids amounted to as much as $4.3 billion,
according to the report.

Carlyle is speaking to other private-equity firms about
joining its bid for PPD, though its talks with PPD could still collapse, the
report said.

A spokesman for Pharmaceutical Product Development declined
to comment Monday. A call to Carlyle was not immediately returned.

Last month, Pharmaceutical Product Development said its
board of directors had asked management to review its strategy and capital
structure, and that it would look for any actions it can take that will create
value for shareholders.

The company, which has a market cap of $3.5 billion, provides
contract drug development and discovery services for pharmaceutical,
biotechnology, medical device, academic and government organizations. It has
offices in 44 countries and more than 11,000 employees.

PPD shares ended the regular session up $4.91, or 18.5
percent, at $31.51. They tacked on another $2.01, or 6 percent, to $33.52 in
extended trading.