Fortrea Announces CEO Stepping Down

Rhea-AI Summary

Fortrea (FTRE) announced that CEO Thomas Pike is stepping down from his role as Chief Executive Officer and Chairman of the Board, effective May 13, 2025. Peter M. Neupert, the company's Lead Independent Director, will serve as Interim CEO and Board Chair. The company has already initiated an executive search process at an advanced stage, and Pike will remain as a consultant during the transition period.

Neupert brings significant healthcare and technology industry experience, having served as an Operating Partner at Health Evolution Partners and Corporate Vice President at Microsoft's Health Solutions Group. The leadership change comes as Fortrea approaches its two-year anniversary as an independent contract research organization (CRO).

The company will hold its earnings conference call on May 12, 2025, at 9 a.m. ET.

Positive

• Smooth transition plan with Pike remaining as consultant
• Interim CEO Neupert brings strong healthcare and technology industry experience
• Executive search for permanent CEO already at advanced stage

Negative

• Unexpected CEO departure as company approaches critical two-year mark post-spin
• Potential business disruption during leadership transition
• CEO departure follows 'challenging period' in 'complex operating environment'

Insights

Corporate Governance Expert

CEO Thomas Pike steps down after guiding Fortrea's spinoff; transition appears planned as company enters its next growth phase.

The departure of Thomas Pike as CEO and Chairman marks a significant leadership transition for Fortrea nearly two years after its spinoff. Pike's exit appears to be part of a planned succession rather than an abrupt departure, as evidenced by the consulting agreement and the advanced stage of the executive search process.

This change comes at a pivotal moment as Fortrea completes its establishment as an independent CRO. Pike's tenure focused on navigating the complex separation process and building operational independence, which required different leadership skills than what might be needed for the company's next growth phase. The Board's language about moving to "the next chapter" suggests this transition is strategic rather than performance-driven.

Interim CEO Peter Neupert brings valuable healthcare and technology expertise from his experience at Health Evolution Partners, Microsoft's Health Solutions Group, and as founding CEO of drugstore.com. His background indicates the Board is prioritizing leadership with both healthcare industry knowledge and digital transformation experience – crucial for a modern CRO competing in the increasingly technology-driven clinical trials space.

The timing – with the executive search already "at an advanced stage" – suggests the Board has been planning this transition, reducing uncertainty. The arrangement for Pike to remain available as a consultant further indicates an orderly handover rather than an unexpected departure, which should provide some stability during this transition period.

Peter M. Neupert, Fortrea’s Lead Independent Director, will serve as Interim CEO as Thomas Pike steps down

DURHAM, N.C., May 12, 2025 (GLOBE NEWSWIRE) -- Fortrea (Nasdaq: FTRE) (the “Company”), a leading global contract research organization (CRO), today announced that Thomas Pike is stepping down from his role as Fortrea’s Chief Executive Officer and as Chairman of its Board. Fortrea’s Lead Independent Director, Peter M. Neupert, will serve as Interim Chief Executive Officer and Board Chair, beginning May 13, 2025. As part of a succession planning process, an executive search is already at an advanced stage. Mr. Pike has entered into a consulting agreement with the Company to serve as a resource to its leadership team through the transition.

“On behalf of Fortrea’s Board, I would like to thank Tom for his invaluable contributions and leadership to Fortrea during a pivotal time,” said Neupert. “Tom has led the company through a challenging period, navigating a complex operating environment while laying critical groundwork for long-term improvement. With Fortrea now operating as a fully independent company as it approaches two years since its spin, Tom and the Board agreed that this is the right time to move ahead with this planned transition.”

“The Fortrea story is more than 30 years in the making, and it’s time for the next chapter,” said Pike. “Since joining almost two and a half years ago when Fortrea was still notional, I have been honored to work with the leadership team as we led the Company’s formation and transition, delivered for our customers, and developed an extraordinary team of talented people around the world. Over time, we have created a leading, agile CRO, bringing unique focus and capabilities to address the needs of customers and achieve our patient-inspired purpose. I am proud of our shared achievements and believe the best is yet to come.”

Peter M. Neupert is a seasoned leader and board member with a track record of success in the healthcare and technology industries. He served as an Operating Partner at Health Evolution Partners, a private equity fund, from February 2012 to July 2014. Prior to joining Health Evolution Partners, Neupert served as Corporate Vice President, Health Solutions Group at Microsoft from August 2005 to January 2012, and as the founding Chief Executive Officer and Chairman of the board of directors of drugstore.com, which he joined in July 1998.

Earnings Call and Replay

Fortrea will hold its earnings conference call at 9 a.m. ET on May 12, 2025, which will include a question and answer session. To participate in the earnings call, participants should register online at the Fortrea Investor Relations website. To avoid potential delays, please join at least 10 minutes prior to the start of the call. The conference call can also be accessed through the following earnings webcast link. A replay of the live conference call will be available shortly after the conclusion of the event and accessible on the events and presentations section of the Fortrea website. A supplemental slide presentation will also be available on the Investor Relations website prior to the start of the call.

About Fortrea

Fortrea (Nasdaq: FTRE) is a leading global provider of clinical development solutions to the life sciences industry. We partner with emerging and large biopharmaceutical, biotechnology, medical device and diagnostic companies to drive healthcare innovation that accelerates life changing therapies to patients. Fortrea provides phase I-IV clinical trial management, clinical pharmacology and consulting services. Fortrea’s solutions leverage three decades of experience spanning more than 20 therapeutic areas, a passion for scientific rigor, exceptional insights and a strong investigator site network. Our talented and diverse team working in about 100 countries is scaled to deliver focused and agile solutions to customers globally. Learn more about how Fortrea is becoming a transformative force from pipeline to patient at Fortrea.com and follow us on LinkedIn and X (formerly Twitter).

Cautionary Statement Regarding Forward-Looking Statements

This press release contains “forward-looking statements” within the meaning of the federal securities laws, including Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. In this context, forward-looking statements often address expected future business and financial performance and financial condition, and often contain words such as “guidance,” “expect,” “assume,” “anticipate,” “intend,” “plan,” “forecast,” “believe,” “seek,” “see,” “will,” “would,” “target,” similar expressions, and variations or negatives of these words that are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. Actual results may differ materially from the Company’s expectations due to a number of factors, including, but not limited to, the following: the duration and results of the search for a new chief executive officer; the Company’s ability to successfully implement the Company’s business strategies and execute the Company’s long-term value creation strategy; risks and expenses associated with the Company’s international operations, tariff policies, trade sanctions and other trade restrictions, and currency fluctuations; the Company’s customer or therapeutic area concentrations; any further deterioration in the macroeconomic environment or further changes in government regulations and funding, which could lead to defaults or cancellations by the Company’s customers; the risk that the Company’s backlog and net new business may not be indicative of the Company’s future revenues and that the Company might not realize all of the anticipated future revenue reflected in the Company’s backlog; the Company’s ability to generate sufficient net new business awards, or if net new business awards are delayed, terminated, reduced in scope, or fail to go to contract; if the Company underprices its contracts, overruns its cost estimates, or fails to receive approval for, or experiences delays in documentation of change orders; and other factors described from time to time in documents that the Company files with the SEC. For a further discussion of the risks relating to the Company’s business, see the “Risk Factors” Section of the Company’s Annual Report on Form 10-K for the year ended December 31. 2024, as filed with the Securities and Exchange Commission (the “SEC”), as such factors may be amended or updated from time to time in the Company’s subsequent periodic and other filings with the SEC, which are accessible on the SEC’s website at www.sec.gov. These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included in this release and in the Company’s filings with the SEC. All forward-looking statements are made only as of the date of this release, and the Company does not undertake any obligation, other than as may be required by law, to update or revise any forward-looking statements to reflect future events or developments.

Fortrea Contacts:

Hima Inguva (Investors) – 877-495-0816, hima.inguva@fortrea.com
Sue Zaranek (Media) – 919-943-5422, media@fortrea.com
Kate Dillon (Media) – 646-818-9115, kdillon@prosek.com

FAQ

Why is Thomas Pike stepping down as Fortrea (FTRE) CEO?

According to the announcement, Pike and the Board mutually agreed this was the right time for transition as Fortrea approaches two years since its spin-off, following a period where Pike led the company through its formation and transition phase.

Who is Peter Neupert, Fortrea's interim CEO?

Peter Neupert is Fortrea's Lead Independent Director with extensive healthcare and technology experience. He previously served as an Operating Partner at Health Evolution Partners and Corporate Vice President at Microsoft's Health Solutions Group.

When will Thomas Pike leave Fortrea (FTRE)?

Pike will step down from his CEO and Chairman roles effective May 13, 2025. He will continue to serve as a consultant to the leadership team during the transition period.

What is Fortrea's plan for a permanent CEO replacement?

Fortrea has already initiated an executive search process which is reportedly at an advanced stage, though no specific timeline for appointing a permanent CEO has been announced.

How long was Thomas Pike CEO of Fortrea (FTRE)?

Pike served as CEO for approximately two and a half years, joining when Fortrea was still in its formation phase before its spin-off.