Labcorp (NYSE: LH), itself a global life science giant, is spinning off its Drug Development Clinical Development business and Pike will serve as its CEO. The announcement was made early Thursday.
Pike joins Labcorp as of Jan. 9. He also will serve as chairman of the board for the independent firm. He retired from Quintiles, which he had helped take public, after the IMS merger. Since then Pike has “advised and served as a director for several healthcare and technology services companies,” Labcorp said.
Labcorp is based in Burlington and has thousands of employees across North Carolina.
Paul Kirchgraber, who currently is CEO of the goup being spun off, “has decided to pursue other opportunities outside of the company upon completion of the spin-off,” Labcorp noted. “Dr. Kirchgraber will continue with Labcorp as EVP and CEO leading the Early Development, Central Laboratories and Global Oncology businesses, and remain with Labcorp until the completion of the spinoff to assist with a smooth transition,” he added.
The spinoff is expected to be completed later this year.
For the time being Pike will report to Labcorp CEO and chair Adam Schechter, Labcorp said.
“Tom’s global leadership experience and proven record in the contract research organization (CRO), healthcare and services industries make him the ideal person to lead the Clinical Development business in its next chapter,” said Schechter in a statement. “Tom has the strategic vision and deep operational experience to expand the new company’s market position, accelerate growth and deliver value for customers and stakeholders. I am confident in his ability to build on the Clinical Development business and position it for continued success.”
In the announcement, Pike said the new job is an “honor.”
“Labcorp’s Clinical Development business is a leading global CRO with significant growth opportunities today and in the future, and it is my honor to take the reins as we continue our progress towards becoming an independent company,” Pike said. “As an independent company with access to Labcorp’s deep health and clinical data set, the Clinical Development business will have increased agility to invest in innovation to better serve customers and advance life-saving therapies. I am excited to begin working closely with the team on developing a long-term growth strategy that will benefit patients, customers, employees and our future shareholders.”