Labcorp Up In Pre-market As Fortrea Set To Begin Trading On Nasdaq

(RTTNews) - Shares of Laboratory Corporation of America Holdings (LH) were trading up on Monday morning after the it announced the spin-off of Fortrea, the newly formed independent Contract Research Organization providing Phase I-IV clinical trial management, patient access, and solutions to pharmaceutical companies.

LH was trading up by 3.42 percent at $214.40 per share in the pre-market trading on the New York Stock Exchange.

Upon the closing, Fortrea made a cash distribution to Labcorp of around $1.6 billion as partial consideration for the assets that Labcorp contributed to Fortrea in connection with the spin-off.

Labcorp intends to use these proceeds toward a $1 billion accelerated share repurchase program, debt repayment, and additional future share repurchases or cash dividends.

Fortrea will begin trading on the Nasdaq under the symbol "FTRE" effective at the market opening today.