Labcorp is splitting into two companies, one focusing on getting out test results and the other on clinical trials so new drugs can be tested. | yalemedicine.org
Labcorp is splitting into two companies, one focusing on getting out test results and the other on clinical trials so new drugs can be tested. | yalemedicine.org
Labcorp announced Thursday that it is breaking into two separate companies, with one part providing lab services to medical providers and the other managing clinical trials.
Labcorp CEO Adam Schechter said the decision will provide several ancillary benefits.
"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 WHQR report.
It will also allow the clinical trials segment to open more trials “than there have ever been before,” he said.
The testing part of the company will still be called Labcorp, while the one that will focus on clinical trials has yet to be named.
The clinical development portion should be up and running by the second half of 2023. Its corporate name, chief executive officer and board of directors will be announced later.
Labcorp, based in Burlington, operates one of the largest clinical laboratory networks in the world, with a U.S. network of 36 primary laboratories.
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