Fortrea Will Become a Leading, Pure-play CRO Focused on Driving Innovation and Improving Patient Outcomes Worldwide; Spin-off Remains on Track to Be Completed in Mid-2023
BURLINGTON, N.C.–(BUSINESS WIRE)–Feb. 9, 2023– Labcorp (NYSE: LH), a leading global life sciences company, today announced that the new company to be formed by the planned spin-off of its Clinical Development business will be known as Fortrea. Upon completion of the spin-off from Labcorp, Fortrea will operate as an independent, publicly traded global CRO that offers comprehensive drug and medical device development services. With over 19,000 people, Fortrea will provide Phase I through IV clinical trial management and commercialization solutions to pharmaceutical and biotechnology organizations around the world.
This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20230208006050/en/
Fortrea will make life-changing innovation possible by combining decades of experience with the nimbleness needed today to improve the drug development process. Fortrea intends to help customers drive innovation and advance next-generation therapies for patients worldwide.
Incorporating the “F” from Fortrea, the new logo is an arrow representing the forward momentum that is innate to the business. It expresses the agile, nimble way Fortrea breaks from conformity and makes a visual nod to the data that powers its approach to innovation. More about the brand and identity can be found on Fortrea.com.
“Today marks a significant milestone as we progress toward becoming an independent company and capturing the enormous opportunity ahead,” said Tom Pike, president and CEO of Labcorp’s Clinical Development business and future CEO and chairman of the board of Fortrea. “The announcement of Fortrea signals to the world what we are building: a leading, pure-play CRO positioned to serve customers, deliver life-changing medicines faster and create lasting value for all our stakeholders.”
“The debut of the Fortrea brand is a defining moment in our journey to create a transformative force in clinical drug and device development,” said Amy Summy, executive vice president and chief marketing officer of Labcorp. “Working side by side with partners, the Fortrea name represents innovation and agility—improving the trial process and delivering life-changing solutions faster.”
As previously announced, Labcorp intends to spin out the Company’s wholly owned Clinical Development business to Labcorp shareholders through a transaction intended to be tax free for U.S. federal income tax purposes. The planned spin-off will result in two independent, publicly traded companies, each poised for strong, sustainable growth:
- Labcorp: A leading global healthcare and life sciences company comprising Labcorp’s Diagnostics, Central Labs and Early Development Research Labs businesses, all of which are leaders with deep scientific expertise; vast health data and insights; and an extensive, advanced global laboratory network.
- Fortrea: A leading global Contract Research Organization (CRO) providing Phase I-IV clinical trial management, market access and technology solutions to pharmaceutical and biotechnology organizations.
The spin-off is expected to be completed in mid-2023, subject to the satisfaction of certain customary conditions, including, among others, the receipt of final approval by the Company’s board of directors, the receipt of appropriate assurances regarding the tax-free nature of the separation, and the effectiveness of any required filings with the Securities and Exchange Commission. Until the spin-off is complete, the Clinical Development business and its products, services and offerings are still owned and operated by Labcorp. The new Fortrea brand identity will go into effect in connection with the spin-off from Labcorp.
More information regarding Fortrea, including the company’s full executive management team, board of directors and stock symbol will be announced in the coming months.
Labcorp is a leading global life sciences company that provides vital information to help doctors, hospitals, pharmaceutical companies, researchers, and patients make clear and confident decisions. Through our unparalleled diagnostics and drug development capabilities, we provide insights and accelerate innovations to improve health and improve lives. With over 75,000 employees, we serve customers in more than 100 countries. Labcorp (NYSE: LH) reported revenue of $16 billion in FY2021. Learn more about us at www.Labcorp.com or follow us on LinkedIn and Twitter @Labcorp.