Labcorp, a global life sciences company, has formed Fortrea, a spin-off of its clinical development business.

Upon completion of the spin-off from Labcorp, Fortrea will operate as an independent, publicly traded global Contract Research Organization (CRO), that offers comprehensive drug and medical device development services.

Fortrea will employ more than 19,000 people, and provide Phase I through IV clinical trial management, and commercialization solutions to pharmaceutical and biotechnology organizations around the world.

Among Fortrea’s goals is to help customers drive innovation and advance next-generation therapies for patients worldwide.

“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.”

Amy Summy, executive vice president and chief marketing officer of Labcorp, said: “The debut of the Fortrea brand is a defining moment in our journey to create a transformative force in clinical drug and device development. Working side by side with partners, the Fortrea name represents innovation and agility—improving the trial process and delivering life-changing solutions faster.”

Labcorp previously announced that it has plans to spin out its 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 sustainable growth:

• Labcorp: A global healthcare and life sciences company comprising Labcorp’s Diagnostics, central labs and early development research labs businesses, with deep scientific expertise; vast health data and insights; and an extensive, advanced global laboratory network.

• Fortrea: A global 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 (SEC).

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.

The company said that its full executive management team, board of directors, and stock symbol will be announced in the coming months.