CORRECTION: An earlier version of this report incorrectly stated that Labcorp is spinning off a second business. It is not. The company only plans to spin off its clinical research organization. The report has been corrected.
Labcorp LH, -0.53% said Thursday that it plans to spin off its clinical development business into a publicly traded clinical research organization, or CRO, in mid-2023. The name of the planned spin-off is Fortrea, and it will employ about 19,000 people under CEO Tom Pike. Labcorp will retain its diagnostics, central labs, and early development research labs business. Labcorp’s stock is down 12.6% over the past year, while the broader S&P 500 SPX, +0.30% has declined 8.9%.
This article was originally published by Marketwatch.com. Read the original article here.