Labcorp to Spin Off Clinical-Development Business

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

Burlington, N.C.-based Labcorp unveiled the plan to separate its clinical-development business Thursday alongside its second-quarter results. Labcorp will continue its focus on its core diagnostic-testing business and will also retain two related pieces of its drug-development unit.