FORTREA SELECTS COGNIZANT AS ITS TECHNOLOGY TRANSFORMATION PROVIDER
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Insights
The partnership between Cognizant and Fortrea signifies a strategic move in the life sciences sector, particularly within the Contract Research Organization (CRO) industry. The transformation of Fortrea's technology infrastructure is poised to enhance its competitive edge by accelerating the clinical trial process and improving patient access to treatments. This venture could potentially disrupt the current CRO market by setting new benchmarks for digital agility and efficiency.
From a market perspective, this collaboration is indicative of the growing trend towards digital transformation in healthcare. Companies that can effectively integrate advanced technologies, such as hybrid cloud solutions and analytics, are likely to see improved operational performance and increased market share. The shift towards a 'born digital' strategy could redefine customer expectations and service delivery standards within the industry.
For investors, the implications of this partnership could be substantial. As Fortrea separates from its former parent company, the successful implementation of Cognizant's technology solutions could lead to improved margins and a stronger market position. This, in turn, may translate into enhanced shareholder value over the long term. However, the success of this initiative will depend on the execution of the technology deployment and the actual performance improvements realized by Fortrea.
The announcement of Cognizant's role in transforming Fortrea's digital ecosystem has financial implications that merit close scrutiny. The scale of the investment in new technologies, as well as the potential for increased efficiency and speed in clinical trial processes, suggests a positive outlook for Fortrea's operational costs and revenue growth.
Investors should note that the capital expenditure involved in digital transformation projects can be significant, but the return on investment can be realized through faster time-to-market for new treatments and potential cost savings from streamlined operations. Moreover, the enhanced data and analytical capabilities expected from this partnership could lead to better decision-making and potentially higher success rates in clinical trials.
It is also important to consider the risks associated with such a large-scale technology overhaul. Delays, integration challenges, or cost overruns could impact the expected financial benefits. Nonetheless, if Cognizant delivers on its promise, Fortrea could see a substantial improvement in its financial performance, providing a compelling narrative for investors.
Fortrea's strategic initiative to overhaul its digital infrastructure with Cognizant's expertise highlights a pivotal development in the life sciences sector. The emphasis on creating a modern, secure digital ecosystem is expected to streamline the clinical trial process, which is of paramount importance to the development and delivery of new therapies.
Enhanced digital capabilities can significantly reduce the time required for data analysis and regulatory submission, which are critical bottlenecks in the clinical trial process. By expediting these steps, Fortrea could potentially shorten the time frame for bringing treatments from concept to market, thereby benefiting patients who are waiting for novel therapies.
The impact on the industry could be transformative, as other CROs may be compelled to follow suit and invest in similar technologies to remain competitive. This could lead to a wave of innovation and efficiency across the sector, ultimately improving patient outcomes and the overall healthcare landscape.
Cognizant to help Fortrea deploy a modern, secure digital ecosystem to help bring treatments to patients faster
By partnering with Cognizant, Fortrea aims to continue advancing its mission and delivering solutions to its pharmaceutical, biotechnology and medical device customers – and to the patients those customers serve – within the confines of a sound and secure digital infrastructure.
Over the four-year agreement, Cognizant is expected to transform Fortrea's global technology environment. Cognizant's approach to the project is expected to bring the speed and agility necessary for the deployment of the next generation hybrid cloud and platforms required for a new era of digital innovation for Fortrea. The state-of-the-art technologies and services are designed to empower Fortrea to transform into a "born digital" organization, enabling a seamless digital experience with agility and efficiency across many different touchpoints.
In June 2023, Fortrea successfully completed its spin-off from its former parent company in a move designed to enhance its agility; capitalize on growth opportunities in phase I-IV clinical trials and patient access; and extend its leading positions in oncology, clinical pharmacology and partnership models. In 2024, Cognizant will play a fundamental role in the exit from Fortrea's Transition Service Agreements with its former parent company, facilitating a smooth switch and the establishment of the global Fortrea infrastructure, application management, and end-user services.
Cognizant's strategic services are expected to elevate Fortrea's data and analytical capabilities with the goal of setting new standards in the CRO industry and driving modernization required to support Fortrea's global operations. Fortrea also expects to benefit from Cognizant's robust life sciences and healthcare technology experience to help address the evolving needs of its customers, including some of the industry's leading enterprises.
"Today's announcement reflects Fortrea's renewed organizational agility following our spin-off," said Alejandro Martinez Galindo, Chief Information Officer of Fortrea. "We are selectively investing in clinical applications and platforms that give us and our customers an advantage in the race to bring life-changing treatments to patients faster. As we build the infrastructure that's essential to supporting these platforms and quickly delivering the insights our customers rely on, we have the opportunity to be 'born digital.' Our new modern ecosystem will be designed to speed decision making with innovation in clinical development. Cognizant's deep expertise will help make our vision a reality."
"Cognizant is proud to partner with Fortrea as they leverage technology to build a world-class culture of excellence that benefits customers, patients, employees and shareholders," said Cognizant EVP, Software and Platform Engineering, Prasad Sankaran. "With our deep domain expertise in clinical trial platforms, medical administration automation and secure collaboration, we can help Fortrea fortify its position as an independent, best-in-class digital, global Contract Research Organization."
"We're looking forward to bringing Cognizant expertise from across our service portfolio to support Fortrea's goal of providing a seamless digital experience for their customers. And we expect our work together will help Fortrea achieve a step-change from the legacy systems common across the industry, to a fully digital ecosystem leveraging the latest technology, which should result in better customer experiences and greater efficiency," said Cognizant EVP & President of the
Cognizant (Nasdaq: CTSH) engineers modern businesses. We help our clients modernize technology, reimagine processes and transform experiences so they can stay ahead in our fast-changing world. Together, we're improving everyday life. See how at www.cognizant.com or @cognizant.
Fortrea (Nasdaq: FTRE) is a leading global provider of clinical development and patient access solutions to the life sciences industry. We partner with emerging and large biopharmaceutical, medical device and diagnostic companies to drive healthcare innovation that accelerates life changing therapies to patients in need. Fortrea provides phase I-IV clinical trial management, clinical pharmacology, differentiated technology-enabled trial solutions and post-approval services. Fortrea's solutions leverage three decades of experience spanning more than 20 therapeutic areas, a passion for scientific rigor, exceptional insights and a strong investigator site network. Our talented and diverse team of about 19,000 people working in more than 90 countries is scaled to deliver focused and agile solutions to customers globally. Learn more about how Fortrea is becoming a transformative force from pipeline to patient at Fortrea.com and follow us on LinkedIn and X (formerly Twitter) @Fortrea.
This press release includes statements which may constitute forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, the accuracy of which are necessarily subject to risks, uncertainties and assumptions as to future events that may not prove to be accurate. These statements include, but are not limited to, express or implied forward-looking statements relating to the business relationship between Cognizant and Fortrea, Fortrea's ability to deploy a modern, secure digital ecosystem that helps bring treatments to patients faster, the benefits to Fortrea from Cognizant's robust life sciences and healthcare technology portfolio, and the other benefits from the business relationship between Cognizant and Fortrea. These statements are neither promises nor guarantees but are subject to a variety of risks and uncertainties, many of which are beyond our control, which could cause actual results to differ materially from those contemplated in these forward-looking statements. Existing and prospective investors are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. Factors that could cause actual results to differ materially from those expressed or implied include general economic conditions, the competitive and rapidly changing nature of the markets we compete in, the competitive marketplace for talent and its impact on employee recruitment and retention, legal, reputational, and financial risks resulting from cyberattacks, changes in the regulatory environment, including with respect to immigration and taxes, and the other factors discussed in the most recent Annual Report on Form 10-K and other filings of Cognizant with the Securities and Exchange Commission (the SEC") and the other risk factors discussed in Fortrea's Information Statement filed with Fortrea's Registration Statement on Form 10, as amended, as filed with the SEC, as such risk factors may be amended or updated from time to time in each of the companies' subsequent periodic and other filings with the SEC, which are accessible on the SEC's website at www.sec.gov. Neither Cognizant nor Fortrea undertakes any obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise, except as may be required under applicable securities law.
Cognizant Contacts: christina.schneider@cognizant.com | Fortrea Contacts: Jennifer Minx (Media) – 919-410-4195, Kate Dillon (Media) – 646-818-9115, Hima Inguva (Investors) – 877-495-0816, |
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SOURCE Cognizant Technology Solutions
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