Starboard sees Fortrea as a robust and diverse worldwide contract research organization serving pharmaceutical, biotech, and medical device firms with drug-trial and research management services, according to the report.

Fortrea completed its spinoff from MedTech giant Laboratory Corporation Of America Holdings (NYSE:LH) in July. 

Starboard's perspective is that Fortrea, under Labcorp, did not operate optimally due to its smaller scale, and the company was hit with "extra costs" after the spinoff.

Jeff Smith, the founder and Chief Executive of Starboard, is scheduled to speak at the 13D Monitor Active-Passive Investor Summit, an activist investing conference. During his appearance, he is expected to provide a comprehensive overview of the fund's investment thesis, the report added.

The disclosure of Starboard's stake in Fortrea is anticipated to be made through a securities filing today.

Price Action: FTRE shares traded higher by 3.29% to $31.10 in premarket on the last check Tuesday. 

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.