Labcorp’s 19,000 employee spinoff Fortrea CEO sinks early roots in Durham

RESEARCH TRIANGLE PARK – Life science conglomerate Labcorp’s plans to spin off 19,000 employees as part of a new company – Fortrea – already has an outpost in Durham at the new Alexandria Center for Advanced Technologies building.

The office at 8 Davis Dive is listed in the letterhead of an update from Tom Pike, the former CEO of Quintiles (now Iqvia) who was selected earlier this year to be board chair and CEO of Fortrea.

Tom Pike in a photo from his LinkedIn page.

Labcorp, which is based in Burlington, has yet to confirm a location for a new Fortrea headquarters. However, over the past several years Labcorp has steadily expanded its operations in the Research Triangle.

The spinoff is expected to be completed this year.

Labcorp currently has some 75,000 workers, including thousands across North Carolina. Its headquarters is located in Burlington.

Pike addresses future shareholders

In a letter about the merger – which will involve a tax-free split of stock from Labcorp – Pike wrote:

“I am excited to welcome you as a future stockholder of Fortrea Holdings Inc. … Fortrea will hold Labcorp’s Clinical Development and Commercialization Services business, and will be a leading global contract research organization providing phase I through IV biopharmaceutical product and medical device services, patient access solutions and other enabling services to global pharmaceutical, biotechnology and medical device organizations.”

He then explained what he considers key points of the merger:

“Following the spinoff, Fortrea will be positioned to:

•capitalize on growth opportunities across phases I through IV clinical trials and extend its leadership in oncology, cell and gene therapy, rare disease, and other emerging therapeutic areas;

•increase agility with large pharmaceutical and biotechnology clients, ranging from industry leaders to emerging organizations, to better serve customers and advance life-saving therapies;

•utilize access to Labcorp’s vast health and clinical data set through an arrangement which will enable it to provide enhanced trial execution and a differentiated value proposition;

•continue to invest in capabilities, technologies, diverse talent and innovation to enhance trial execution and better serve all of its customers; and

•implement a capital structure that is tailored to support its growth strategy and enhance stakeholder value.”

Once the split is approved, Fortrea shares withh trade on the Nasdaq under the symbol “FTRE.”