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Here are 1-2 brief analogies for Fortrea:

• A general contractor for pharmaceutical and biotech companies.

• The IBM for drug development and clinical trial services.

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• Clinical Development: Manages and executes all phases of clinical trials (Phase I-IV) for pharmaceutical, biotechnology, and medical device companies, covering study design, patient recruitment, monitoring, and data collection.
• Central Laboratory Services: Provides comprehensive global laboratory testing, sample management, and bioanalysis services essential for clinical trials.
• Post-Approval Solutions: Offers services such as real-world evidence studies, patient registries, market access strategies, and health economics and outcomes research to support products after regulatory approval.
• Technology & Consulting Services: Provides specialized consulting, data analytics, and technology platforms to optimize clinical trial processes and drug development strategies.

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Fortrea (FTRE) is a global contract research organization (CRO) and primarily sells its services to other companies, rather than individuals. Its business-to-business (B2B) model supports the pharmaceutical, biotechnology, and medical device industries.

According to Fortrea's Annual Report on Form 10-K for the fiscal year ended December 31, 2023, no single customer accounted for 10% or more of its total revenues. As such, Fortrea does not publicly disclose the names of specific major customer companies. Instead, its customer base is diverse across the following categories:

• Pharmaceutical Companies: Fortrea partners with a wide range of pharmaceutical companies, including large multinational corporations and smaller, emerging drug developers, providing services for clinical trials and drug development.
• Biotechnology Companies: The company serves numerous biotechnology firms, from established leaders to innovative startups, assisting in the development and testing of novel biological therapies and products.
• Medical Device Companies: Fortrea also works with manufacturers and developers of various medical devices and diagnostics, offering clinical research services to support regulatory approvals and market entry.

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Anshul Thakral, Chief Executive Officer

Anshul Thakral became Fortrea's Chief Executive Officer, effective August 4, 2025. He also serves as a member of Fortrea's Board of Directors. Thakral co-founded and served as CEO of Launch Therapeutics. He previously held several executive leadership roles at PPD, a leading contract research organization (CRO), including chief commercial officer and executive vice president of Peri- and Post-Approval Services, and led PPD Biotech. Before PPD, he ran the global life sciences business unit at Gerson Lehrman Group and was an Associate Principal at McKinsey & Company in the healthcare practice. He currently serves on the board of directors of TriNetX, Saama Technologies, and Orsini Specialty Pharmacy.

Jill McConnell, Chief Financial Officer

Jill McConnell is the Chief Financial Officer of Fortrea, a position she has held since Fortrea's launch as an independent company in July 2023, following its spinoff from Labcorp. She brings over 25 years of financial leadership experience in healthcare, contributing to growth, margin expansion, and global change initiatives across the U.S., U.K., and Ireland. Prior to Fortrea, she was the Chief Financial Officer of Labcorp Drug Development starting in 2018 and led the project that executed the Fortrea spinoff. Earlier, McConnell spent nearly 19 years at GSK, where she held increasingly senior financial roles, including Senior Vice President and Chief Financial Officer of ViiV Healthcare, a joint venture involving GSK, Pfizer, and Shionogi. She qualified as a Certified Public Accountant, primarily with PwC.

Mark Morais, Chief Operations Officer and President, Clinical Development

Mark Morais has served as Fortrea's Chief Operations Officer and President, Clinical Development since May 2023. He is responsible for the strategy and delivery of Fortrea's clinical operations. Morais has more than two decades of experience in the CRO industry, with a successful track record in operational optimization and commercial development. Before Fortrea's spinoff from Labcorp, he held several leadership positions at Labcorp Drug Development, including President of Clinical Operations and Commercial Services. He also served at Quintiles/IQVIA in global leadership positions within Commercial Development and Clinical Operations.

Oren Cohen, MD, Chief Medical Officer and President, Clinical Pharmacology

Dr. Oren Cohen is the Chief Medical Officer and President of Clinical Pharmacology at Fortrea, a role he has held since the company's launch in July 2023. He collaborates with biopharmaceutical companies to optimize early clinical development. Dr. Cohen has over 20 years of experience in medical and scientific executive leadership within the pharmaceutical industry. Previously, he spent a decade conducting translational research at the U.S. National Institute of Allergy and Infectious Diseases. He also serves as a Consulting Professor of Medicine at Duke University Medical Center.

J. Stillman Hanson, General Counsel

J. Stillman Hanson is Fortrea's General Counsel, a position he has held since the company's launch as an independent entity in July 2023. With more than two decades of legal experience, Hanson has served in both private practice and in-house roles, acting as a strategic business advisor. Before joining Labcorp, he was General Counsel, Chief Compliance Officer, and Corporate Secretary at G1 Therapeutics, Inc., a publicly traded biopharmaceutical company. His prior experience also includes roles as Associate General Counsel and Vice President at IQVIA and Associate General Counsel at Quintiles, where he was involved in Quintiles' initial public offering and its merger with IMS Health.

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The key risks to Fortrea's business operations and financial stability include a challenging demand environment for new business, significant financial performance issues coupled with a substantial debt burden post-spin-off, and a high degree of customer concentration.

1. Challenging Demand Environment and Ability to Generate New Business Awards: Fortrea's business is highly dependent on its ability to secure new contracts and maintain existing ones, but the company faces an uncertain biotech funding environment leading to delays in decision-making and project startups. There has also been a noted decline in the fervor for new drug research, which directly impacts the demand for contract research organization (CRO) services like those provided by Fortrea. Delays, terminations, or reductions in the scope of new business awards could materially affect the company's financial performance.
2. Financial Performance, Debt Burden, and Operational Costs Post-Spin-Off: Fortrea has reported significant net losses, including a substantial non-cash goodwill impairment charge, and has experienced negative operating cash flow. The company carries a considerable debt load, and the costly process of establishing its own independent IT systems and operations after spinning off from Labcorp has further strained its financial resources and contributed to higher operational costs, such as elevated selling, general, and administrative (SG&A) expenses compared to peers.
3. Customer Concentration: A substantial portion of Fortrea's revenue is derived from a limited number of clients. Specifically, 59% of its revenues come from its top 10 customers, with the largest client accounting for 13.2%. This high customer concentration amplifies the risk that a reduction in business or loss of one or more major clients could materially impact financial results and make future revenue less predictable.

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The clear emerging threat for Fortrea (FTRE) is the accelerating adoption and sophistication of Decentralized Clinical Trials (DCTs) and related digital health platforms. This model leverages technology such as wearables, telehealth, remote monitoring, and eConsent to enable patients to participate in clinical trials from their homes, fundamentally altering the traditional site-centric approach to clinical research. If Fortrea does not rapidly and comprehensively adapt its offerings and operational model to these evolving methodologies, it risks losing market share to more agile competitors, specialized DCT providers, or pharmaceutical sponsors increasingly conducting trials with significant decentralized components. This shift challenges the traditional CRO service delivery model, much like streaming services challenged physical video rental.

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Fortrea operates in several key markets within the biopharmaceutical and medical device industries. The addressable markets for its main products and services are as follows:

• Clinical Development Services: Fortrea estimates its current addressable market for clinical development at approximately $35 billion. More broadly, the global Phase I–IV Clinical Development Services Market was valued at about USD 45.8 billion in 2024 and is projected to reach around USD 103.6 billion by 2033. Similarly, the global clinical research services market was projected to be USD 62.69 billion in 2024, with an expectation to reach USD 131.99 billion by 2032. This market encompasses comprehensive Phase I through IV clinical trial management, clinical pharmacology, and consulting services, with a focus on various therapeutic areas.
• Real-World Evidence (RWE) Solutions & Post-Approval Studies: The global real-world evidence solutions market size was valued at USD 17.91 billion in 2024. This market is projected to grow to USD 48.02 billion by 2032. Other estimates place the global market size at approximately USD 2.3 billion in 2024, with a projection to reach USD 10.2 billion by 2034.
• Medical Affairs Outsourcing: The global medical affairs outsourcing market size reached approximately USD 2.2 billion in 2024. This market is predicted to increase to around USD 3.89 billion by 2034.

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1. Growth in Core Clinical Businesses: Fortrea anticipates future revenue growth driven by increased demand and performance in its key segments, specifically clinical pharmacology and clinical development. The third quarter of 2025 already showed a 3.9% year-over-year revenue increase, largely attributed to these areas, along with a benefit from foreign exchange. Growth in the Clinical Pharmacology business was primarily due to higher demand and a favorable study mix, while Clinical Development benefited from recent net new business awards.

2. Robust Backlog and Improved Book-to-Bill Ratio: The company's substantial backlog, exceeding $7.6 billion, provides a solid foundation for future revenue recognition. An improved book-to-bill ratio of 1.13x in Q3 2025 (and a trailing 12-month ratio of 1.07x) indicates strong order intake relative to revenue, signaling a healthy pipeline and future revenue conversion from new contracts.

3. Enhanced Win Rates and New Client Acquisition, especially in Biotech: Fortrea has demonstrated significantly improved win rates, reaching their highest level in six quarters, particularly with biotech clients. The company's strategy includes expanding its reach by growing the pipeline of new opportunities and actively acquiring new clients, which is expected to translate into sustained revenue growth.

4. Operational Efficiency and Digital/AI Innovation: While primarily focused on margin improvement and cost optimization, Fortrea's emphasis on enhancing operational efficiency and expanding its digital offerings, including the integration of AI into clinical trial workflows, is expected to indirectly contribute to revenue growth. These improvements can lead to better service delivery, increased competitiveness, and higher client satisfaction, thereby attracting more business.

5. Strategic Focus on Therapeutic Expertise and Full-Service Clinical Business: Fortrea is actively focusing on improving the mix of its project portfolio by prioritizing the growth of its full-service clinical business. The company has successfully secured bookings in key therapeutic areas such as oncology, diabetes, dermatology, and autoimmune disease, leveraging its recognized therapeutic and scientific expertise to win significant Phase 3 trials. This strategic focus on areas of strength helps secure larger, more complex contracts.

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Share Repurchases

• Fortrea has not engaged in direct share repurchases since its spin-off in July 2023.
• In October 2025, Fortrea commenced a cash tender offer to repurchase up to $75.744 million of its outstanding 7.500% Senior Secured Notes due 2030, a move intended to comply with indenture covenants following a divestiture.

Share Issuance

• Fortrea became an independent public company on July 3, 2023, through a spin-off from Labcorp, where 100% of Fortrea's common stock was distributed to Labcorp shareholders.
• Approximately 88.1 million shares were outstanding at the time of the spin-off. This number increased to about 90.5 million common shares outstanding by June 11, 2025.
• In June 2025, Fortrea declared a dividend of purchase rights for preferred shares, allowing existing stockholders to acquire additional shares at $50 per right.

Outbound Investments

• Fortrea divested its Endpoint Clinical and Fortrea Patient Access businesses, completing the sale in June 2024 for $345 million. The proceeds from this divestiture were partly used for debt reduction.

Capital Expenditures

• Capital expenditures for Fortrea were reported as $(14.50) million for the last 12 months as of early November 2025.
• For the third quarter of 2025, capital expenditures were $(17.7) million, compared to $(28.7) million for the same period in 2024.
• A primary focus of capital allocation includes driving organic growth and improving productivity, along with enhancing operational efficiency and expanding digital offerings.