New Triangle life science firm Fortrea reports $793M in revenue – first quarter as public company

DURHAM – Fortrea, the new life science contract research organization built around the spinoff of Labcorp’s CRO business, reported revenues of $793 million and a gross profit of $28.3 million in its first full quarter as a public company on Monday.

Revenues were flat compared to Labcorp’s CRO business in the second quarter of 2022.

Looking ahead, Fortrea, which has some 19,000 employees worldwide, now expects revenues of between $3.034 billion and $3.096 billion for the year with earnings of between $255 million and $285 million.

Its shares (Nasdaq: Ftre) have traded as high as $37 but closed at $30.64 on Friday. In pre-market trading Monday shares dropped $3.

CEO celebrates ‘independence’

CEO Tom Pike, who has led the spinoff of Fortrea, delivered an update about the Durham-based company’s progress to date.

“Fortrea is now an independent CRO, as we successfully completed our spin at the end of June. This independence will allow Fortrea to focus our investments to improve research and delight our customers,” Pike, who also is company chair, said in a statement.

“This is the next chapter for a company that has been carefully assembled over the past 30 years. We have established a great leadership team, an experienced Board of Directors and a robust governance structure. At the same time, our talented global team has remained focused on project delivery and our purpose of bringing life-changing treatments to patients faster while creating an independent company. The transformation has begun. We are encouraged by our customers’ response to our team and the completion of our spin, and we see positive momentum in the flow of new opportunities this quarter. Looking forward, we are positioned to make rapid progress against our goals and strategies, leveraging our customer relationships to drive revenue growth and margin expansion in an attractive clinical services market.”