Labcorp has announced plans to spin off its wholly owned Clinical Development business to the company shareholders through a tax-free transaction.

The spin-off will result in two independent, publicly traded companies.

The first company Labcorp, an international laboratory business, will consist of the company’s routine and esoteric labs, early development research labs and central labs.

Secondly, the Clinical Development business will be a contract research organisation (CRO) providing Phase I-IV clinical trials, market access as well as technology solutions to pharmaceutical and biotechnology companies.

Last year, the company’s Board decided to begin a dividend and accelerate its share repurchase programme.

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The planned spin-off the Clinical Development business will increase its agility with large pharmaceutical and biotechnology clients to advance the development of life-saving therapies and better serve its customers.

Through an arrangement, the business will retain access to Labcorp’s health and clinical data set that will allow it to offer enhanced trial execution.

It will continue to make investments in diverse talent, capabilities, technologies, and innovations to improve execution of clinical trials.

Labcorp chairman and CEO Adam Schechter said: “Spinning off the Clinical Development business will benefit customers and shareholders by creating two standalone businesses that are poised to accelerate growth and focus resources on distinct strategic priorities, customer needs and value creation.

“Our customers will continue to have access to our full range of capabilities with the same quality and seamless delivery of services they have come to expect from our teams.”

The Clinical Development business delivered $3bn in total revenue over the last four quarters ending 30 June this year.

Recently, Labcorp entered a strategic collaboration with MD Anderson Cancer Center Foundation Spain to improve access to early phase clinical trials in oncology.