July 28 (Reuters) – Laboratory Corp of America Holdings (LH.N) said on Thursday it would spin off its wholly owned business focused on clinical drug trials, sending its shares up nearly 4%.
The planned spin-off will result in two independent, publicly traded companies – Labcorp and the clinical development business, the company said.
The clinical-development segment was started in 2014 after the $6.1 billion acquisition of Covance Inc.
Contract research organizations, which were hurt after clinical trials were disrupted due to the pandemic, have seen a resurgence in demand as drugmakers and governments invest in newer treatments.
The sector saw several multi-billion dollar deals last year, with medical device maker Thermo Fisher Scientific Inc (TMO.N) acquiring contract researcher PPD Inc for $17.4 billion and Icon Plc buying rival PRA Health Sciences in a roughly $12 billion deal.
Labcorp initiated a strategic review last year after investor pressure from Jana Partners, but that ended without a merger or an acquisition as Labcorp offered its shareholders dividend and approved a $2.5 billion buyback program.
Adam Schechter will continue to lead Labcorp as chairman and chief executive officer following the completion of the planned spin-off, which is expected to complete in the second half of 2023.
Shares of Labcorp were up nearly 4% at $258.80 in premarket trading.
Our Standards: The Thomson Reuters Trust Principles.
Chinese vaccine firm CanSino Biologic's inhalation-based candidate elicited a better antibody response as a booster against the BA.1 Omicron sub-variant than Sinovac's shot, but the antibody level dropped in months, clinical trial data showed.
Reuters, the news and media division of Thomson Reuters, is the world’s largest multimedia news provider, reaching billions of people worldwide every day. Reuters provides business, financial, national and international news to professionals via desktop terminals, the world's media organizations, industry events and directly to consumers.
Build the strongest argument relying on authoritative content, attorney-editor expertise, and industry defining technology.
The most comprehensive solution to manage all your complex and ever-expanding tax and compliance needs.
The industry leader for online information for tax, accounting and finance professionals.
Access unmatched financial data, news and content in a highly-customised workflow experience on desktop, web and mobile.
Browse an unrivalled portfolio of real-time and historical market data and insights from worldwide sources and experts.
Screen for heightened risk individual and entities globally to help uncover hidden risks in business relationships and human networks.
All quotes delayed a minimum of 15 minutes. See here for a complete list of exchanges and delays.
© 2022 Reuters. All rights reserved

source

Lascia un commento

Il tuo indirizzo email non sarà pubblicato. I campi obbligatori sono contrassegnati *