In planning to focus on more important business, Laboratory Corporation of America Holdings (Labcorp) will be separating its Clinical Development business which will be named Fortrea.
In July 2022, Labcorp stated that the spin-off will operate as an independent, publicly traded global CRO that offers comprehensive drug and medical device development services.
According to reports, Fortrea will be based in Durham while the parent company Labcorp will be based in Burlington. The project is to be completed in Q2 2023.
Fortrea is said to have more than 19,000 employees while the company provides Phase I through IV clinical trial management and commercialization solutions to pharmaceutical and biotechnology organizations around the world.
Fortrea, which is a spin-off of Labcorp, will be listed on The Nasdaq Stock Market with the ticker "FTRE" upon the successful split, while Labcorp will still be listed on the New York Stock Exchange with the symbol "LH."
The spin-off is expected to be completed in mid-2023, subject to certain conventional conditions such as final approval by the company's Board of Directors, acceptance of appropriate guarantees regarding the tax-free nature of the split up, and the success of any required filings with the US Securities and Exchange Commission.
Until the spin-off is completed, Labcorp will continue to own and operate the Clinical Development business, as well as its products, services, and offerings. With the split from Labcorp, the new Fortrea brand identification will go into effect.
Labcorp is a global life sciences organization that offers critical information to doctors, hospitals, pharmaceutical companies, researchers, and patients to assist them make informed decisions. The corporation, which employs over 75,000 people, services consumers in over 100 countries. Labcorp reported $16 billion in revenue during FY2021.
Labcorp declined its industry over the last year. Labcorp shares are down 11.3% year to date, while the industry is up 6.6%.
Reports Concerning Labcorp Development
Labcorp is currently concentrating its efforts in high-growth areas such as neurological, autoimmune, and liver illness, as well as cell and gene therapy.
Labcorp continues to grow its ability to assist clinicians and pharmaceutical customers in Oncology, another high-growth field. In the first quarter, the business collaborated with ImmunoGen on an Immunohistochemistry-sponsored testing program to improve access for ovarian cancer patients. LabCorp is introducing HER2 low reporting to its IHC breast cancer test. This is the only FDA-approved companion diagnostic of HER2 low status for patients with metastatic breast cancer, which affects patient eligibility for treatments and therapies that can improve outcomes.
LabCorp entered into an arrangement with VieCure in the first quarter of 2023 to provide doctors with increased access to precision oncology decision support. Furthermore, in the first quarter, the company launched three new tests on its digital health platform LabCorp OnDemand, including a PSA prostate cancer screening test, a hepatitis B immunity test, and a fatigue test for individuals with chronic fatigue systems, including post-COVID fatigue.
Labcorp updated its Ovia app in February 2023, allowing women to track menopausal symptoms as well as receive essential tools and help to face the transition to menopause/perimenopause.
Labcorp Plasma Focus, a liquid biopsy test, was introduced by the business in 2022. This test uses the patient's circulating tumour DNA from a blood draw to match cancer patients with FDA-approved medicines. This is the first new product introduced by Labcorp following the acquisition of Personal Genome Diagnostics in 2022.
Difference between Labcorp and Fortrea
Labcorp is a global medical company and pharmaceutical firm consisting of Labcorp's Diagnostics, Central Laboratories, and Early Development Research Laboratories companies, all of which claim deep scientific expertise, huge health data and insights, and a vast, modern international laboratory network.
Fortrea is a global contract research organization (CRO) that provides pharmaceutical and biotechnology companies with Phase I-IV clinical trial management, market access, and technology solutions.
Statements From Top Officials in Labcorp
Tom Pike - President/CEO of Labcorp’s Clinical Development Business and Future CEO and Chairman of the Board of Fortrea
“Today marks a significant milestone as we progress toward becoming an independent company and capturing the enormous opportunity ahead. 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.”
Amy Summy - Executive Vice President and Chief Marketing Officer, Labcorp
“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, Labcorp. “Working side by side with partners, the Fortrea name represents innovation and agility—improving the trial process and delivering life-changing solutions faster.”