Life sciences company Labcorp's unit approved for Nasdaq listing (updated)

Laboratory of America Holdings

09/06/2023 22:18

(Adds background on Labcorp's planned spin-off from paragraphs
2 to 6)
       June 9 (Reuters) - Life sciences company Labcorp  LH.N 
said on Friday Fortrea, its clinical development unit it is
looking to spin off, had been approved for listing on Nasdaq.
    Labcorp stockholders will receive one common share of
Fortrea for each Labcorp share they own, the company said.
Fortrea shares will trade under the symbol "FTRE".
     Fortrea offers clinical trial management and medical device
development services. Labcorp started the segment in 2014 after
the $6.1 billion acquisition of Covance. 
    Burlington, North Carolina-based Labcorp first announced the
planned separation in July last year. In February, the unit was
named "Fortrea".
    Contract research firms, which conduct drug
development-related work for third parties, have been hit by
constraints over the supply of non-human primates (NHP) after a
Cambodian supplier was charged in connection with illegal
imports into the United States.
    Labcorp had initiated a strategic review in 2021 after
investor pressure from Jana Partners, but that ended without a
merger or an acquisition as Labcorp offered its shareholders a
dividend and approved a $2.5 billion buyback program. 
    
    

 (Reporting by Bhanvi Satija and Niket Nishant in Bengaluru;
Editing by Krishna Chandra Eluri)
 ((Niket.Nishant@thomsonreuters.com;))