LabCorp, a global life sciences company, is pursuing a spin-off of its wholly owned Clinical Development business, which will result in two independent, publicly traded companies:
 

• Labcorp: A global laboratory business comprising the Company’s routine and esoteric labs, central labs and early development research labs, all of which are leaders with deep scientific expertise, vast health data and insights, and an extensive, advanced global laboratory network.
• The Clinical Development Business: A global Contract Research Organization (CRO) providing Phase I-IV clinical trial management, market access and technology solutions to pharmaceutical and biotechnology organizations.

 
The planned spin-off is expected to provide each company with:
 

• Strengthened strategic flexibility and operational focus to pursue specific market opportunities and better meet customer needs.
• Focused capital structures and capital allocation strategies to drive innovation and growth.
• A more targeted investment opportunity for different investor bases.

 
“Spinning off the Clinical Development business will benefit customers and shareholders by creating two standalone businesses that are poised to accelerate growth and focus resources on distinct strategic priorities, customer needs and value creation,” said Adam Schechter, chairman and CEO of Labcorp.
 
Schecter continued, “Our shareholders will be able to participate in the upside potential of two market-leading businesses in the global healthcare sector, each of which will be well-capitalized and positioned to generate sustainable growth with strong free cash flows and attractive returns. Our customers will continue to have access to our full range of capabilities with the same quality and seamless delivery of services they have come to expect from our teams. Today is a testament to our long history of growth through innovation and track record of delivering on our mission to improve health and improve lives.”
 
Over the last four quarters ending June 30, 2022, the Clinical Development business delivered total revenue of $3.0 billion. This business grew 8.0% on a CAGR basis from second quarter 2019 to second quarter 2022. Going forward, the Clinical Development business is expected to deliver high-single-digit revenue growth.
 
Schechter will continue to lead Labcorp as chairman and CEO following the completion of the planned spin-off. Labcorp will continue to be headquartered in Burlington, North Carolina.
 
The Board of Directors, executive leadership, and company name of the Clinical Development business will be determined and announced in the future as plans for the spin-off continue to progress.
 
Labcorp is targeting completion of the planned spin-off in the second half of 2023.