Bookings PerformanceThe company’s new awards performance was disappointing, with delays in biotech decision-making and softness in clinical pharmacology affecting the net book-to-bill ratio.
Market EnvironmentThe weak biotech funding environment could lead to a decrease in R&D spending by biopharmaceutical companies, negatively affecting Fortrea.
Operational ChallengesFortrea has a limited history of operating as a standalone business and could continue to lose share due to execution issues and spin-related disruptions.