As biotech surges, NC-based Labcorp splits into 2 companies
In a deal that chief executive officer Adam Schechter said creates more opportunities for clinical trials "than there have ever been before," Burlington-based Labcorp will split in two.
One company, which will retain the Labcorp name, will focus on providing laboratory tests and services to doctors and hospitals. The other, not yet named, will manage clinical trials and technology solutions for pharmaceutical companies.
Labcorp made the announcement Thursday morning, alongside its second quarter results.
"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," Schechter said in a statement. The CEO will continue to lead the spun-off Labcorp. Headquarters will remain in Burlington.
The clinical development spinout should be up and running by the second half of 2023. It will have its own CEO and board of directors. Those will be announced at a future date.
Labcorp is one of the nation's largest lab providers. It recently unveiled a test than can detect the monkeypox virus. Labcorp reported second quarter revenue of $3.7 billion, a 3.7% decrease from the same period last year.