Labcorp To Spin Off Its Clinical Development Business

(RTTNews) - Laboratory Corporation of America Holdings (LH) on Thursday said it decided to divest its Clinical Development business.

The spin-off creates two independent, publicly traded companies- Labcorp as well as the Clinical Development Business.

Labcorp, a laboratory business, consists of the company's routine and esoteric labs, central labs and early development research labs .

The Clinical Development Business is a Contract Research Organization (CRO) providing clinical trial management, market access, and technology solutions to pharmaceutical and biotechnology organizations.

Labcorp said its routine and esoteric labs, central lab and early development research lab businesses grew 5.5% on a CAGR basis from second quarter 2019 to second quarter 2022, and expects to deliver mid-single digit annual revenue growth, going forward.

The Clinical Development business grew 8.0% on a CAGR basis from second quarter 2019 to second quarter 2022, and expected to deliver high-single-digit revenue growth, in future.

"Labcorp currently expects to effect the planned spin-off through a dividend of the Clinical Development business' shares to Labcorp's shareholders," the company said.

The company expects the planned spin-off to be completed in the second half of 2023.