Fortrea (FTRE) Evercore ISI 8th Annual HealthCONx Conference summary

Leadership transition and organizational progress

• CEO transition has progressed smoothly, with strong support from leadership and employees.

• CEO has met a significant portion of the workforce and top customers, gaining a solid understanding of the business.

• The company is implementing meaningful changes over the next 90 days, focusing on strategic direction.

• Year-end earnings will provide more detailed guidance and forward-looking plans.

Market environment and customer trends

• Pharma budget sentiment is neutral to positive, with large companies reactivating R&D pipelines for 2026 and beyond.

• Funding for small and mid-sized companies has improved compared to last year, though not at 2018 levels.

• M&A and licensing activity in biotech is increasing, with venture capital sentiment improving.

• R&D pipeline growth is expected to return to low single digits.

Strategic partnerships and competitive positioning

• Strategic partnerships in pharma ebb and flow, with refresh cycles every three years; more activity is expected in 2026 and 2027.

• The company has protected major partnerships and added new mid-sized ones.

• Differentiates between FSP (Functional Service Provider) and FSO (Full Service Outsourcing) offerings, choosing opportunities based on strategic fit.

• Unique size and flexibility are leveraged as competitive advantages, especially for biotech clients.