Fortrea: Is This Bold AI-Powered Tech Overhaul the Secret Weapon for Outsized Growth?

Fortrea’s recent earnings provided a comprehensive view of their financial and operational performance for the fourth quarter and full year 2024. The company, which specializes in clinical pharmacology services (CPS) and full-service clinical work, has been navigating significant changes and encountering both challenges and opportunities post-spin from its former parent corporation. The company reported a book-to-bill ratio of 1.35x for the fourth quarter, with a trailing 12 months figure of 1.16x, and concluded the year with a backlog of $7.7 billion. These figures indicate promising sales capabilities and strong new business awards, particularly in Phase I clinical pharmacology and oncology studies. Fortrea has also strengthened its foothold in the Asia Pacific region and in the biotech sector, with notable wins in oncology and other therapeutic areas. Additionally, they’ve been recognized by large pharma clients for their drug safety solutions, integrating AI tools in their services.