Corning To Spin Off Lab Services Division

Corning Inc. opted Tuesday to steer out of the highly competitive health-care arena by spinning off its lab-testing and drug services units, which account for nearly 40 percent of its sales.

Hurt by growth in managed care and changes in how the federal government reimburses payments, the struggling laboratory services division has dragged down the company’s profits in recent years.

Rather than sell it to another company, Corning is turning the $1.6 billion business over to shareholders along with the fastgrowing pharmaceutical services unit, which has revenues of more than $400 million.

The businesses employ 22,500 people worldwide, but no layoffs were anticipated.