Labcorp Announces Spinoff of Clinical Development Business

In a recent press release, the top global life sciences company, Labcorp, announced its decision from its Board of Directors to move forward with a spin off of the Company’s wholly owned Clinical Development business to shareholders of Labcorp via a tax-free transaction. This transaction was formulated to generate value through enhanced strategic and operational focus. The planned spin off will result in two independent, publicly traded companies, each slated for robust and sustainable growth:

• Labcorp: A leading global laboratory business comprising the Company’s routine and esoteric labs, central labs and early development research labs, all of which are leaders with intense scientific expertise, vast health data and insights, and an extensive, advanced global laboratory network. The press release also noted that Labcorp will remain a leader “in the laboratory market with highly complementary, laboratory-focused businesses including routine and esoteric labs, central labs and early development research labs.”
• The Clinical Development Business: A leading, global Contract Research Organization (CRO) will provide Phase I-IV clinical trial management, market access and technology solutions to pharmaceutical and biotechnology organizations. The Clinical Development Business will be a leading pure-play contract research organization with a comprehensive set of clinical trial management, market access and technology capabilities.

The planned spin off is projected 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 and a more targeted investment opportunity for different investor bases.

Adam Schechter, chairman and CEO of Labcorp stated, “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. 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.”

Labcorp is targeting completion of the planned spin off in the second half of 2023.