Labcorp set to form clinical development company

Laboratory Corp. of America Holdings plans to spin off its unit focused on clinical drug trials, a move that will create a new standalone company in the growing contract research business.

Burlington, North Carolina-based Labcorp on Thursday unveiled the plan to spin off its clinical development business alongside its second-quarter results. Labcorp will continue to focus on its core diagnostic testing business and will also retain two related elements of its drug development unit.