BURLINGTON – Fortrea, the looming spinoff from global life sciences giant Labcorp, is looking to raise money in order to help pay the $1.6 billion it will owe Labcorp as part of the deal.

In announcing the offering on Thursday, Fortrea said funds from the offering would be used as “a portion of an expected approximately $1,605 million cash distribution to Labcorp as partial consideration for the assets that will be contributed to Fortrea in connection with the Spinoff and funding a portion of the fees and expenses related to this offering and the transactions related to the Spinoff.”

The funds will be held in escrow in the event the spinoff fails to occur, the companies said.

Fortrea will be led by Tom Pike, a former CEO of Durham-based Quintiles which later merged with Iqvia.

According to Pike, the CRO (Contract Research Organization) plans to differentiate itself from its competitors by interviewing key members of the pharma industry and refining strategies to address pain points. New technology and a focus on data and analytics will also be priorities. The company plans to partner with a diverse pool of pharma companies, big and small, with investments in a variety of therapeutic areas.

First look at Labcorp spinoff: CEO Pike wants a ‘magnet’ workforce