Labcorp to spin off clinical-development business - WSJ (updated)

Laboratory of America Holdings

28/07/2022 09:33

(Adds details, background)
    July 28 (Reuters) - Diagnostics company Labcorp  LH.N  plans
to spin off its unit focused on clinical drug trials, the Wall
Street Journal reported on Thursday, citing people familiar with
the matter.
    Labcorp will continue to focus on its core
diagnostic-testing business and will also retain two related
pieces of its drug-development unit, the report said. (https://on.wsj.com/3cMDVEh)
    The move is expected to be unveiled on Thursday when the
company announces its second-quarter results, the report said.
    The business that is being spun off reported a revenue of
roughly $3 billion in the 12 months ended in June, a figure that
is expected to grow at a high-single-digit rate, as per the
report.
    The company ventured into the clinical-development segment
in 2014 with its $6.1 billion purchase of Covance Inc. 
    Labcorp initiated a strategic review last year after
investor pressure from Jana Partners, but that ended without a
merger or an acquisition as Labcorp offered its shareholders
dividend and approved a $2.5 billion buyback program.
    Labcorp did not immediately respond to Reuters' request for
a comment.

 (Reporting by Akriti Sharma in Bengaluru; editing by
Uttaresh.V)
 ((Akriti.Sharma@thomsonreuters.com;))