Labcorp, Opko Health acquire certain assets of BioReference Health

Labcorp (LH) and OPKO Health (OPK) announced that they have entered into an agreement for Labcorp to acquire select assets of BioReference Health, a wholly owned subsidiary of OPKO Health. Through this transaction, Labcorp will acquire BioReference Health’s laboratory testing businesses focused on oncology and oncology-related clinical testing services across the United States. This transaction includes certain customer accounts and other operating assets. When complete, the transaction is expected to provide patients, physicians and customers with greater access to Labcorp’s comprehensive, high-quality laboratory services, scientific expertise and expanded testing capabilities. This acquisition further solidifies Labcorp’s position as an industry leader in oncology, expanding its extensive portfolio of diagnostic tests in cancer care. The assets that Labcorp will be acquiring currently generate approximately $85 million to $100 million in annual revenue. The purchase price for the transaction is up to $225 million, including $192.5 million payable at closing and up to $32.5 million in an earnout based on performance. The proposed acquisition meets Labcorp’s strategic and financial criteria, and is expected to be accretive to Labcorp earnings in year one. Upon closing of this transaction, BioReference Health’s operations will include its core clinical testing operations in the New York and New Jersey region and its 4Kscore franchise, which represented approximately $300 million in revenue for 2024. The transaction is subject to customary closing conditions and remaining applicable state regulatory approvals. The transaction is anticipated to close in the second half of 2025.