Labcorp (NYSE: LH) has recently completed the acquisition of select assets of Bioreference Health, a wholly owned subsidiary of Opko Health, Inc. The acquisition includes Bioreference Health's laboratory testing businesses focused on clinical diagnostics and reproductive and women's health in the United States outside of New York and New Jersey, along with certain patient service centers, customer contracts, and operating assets. These assets currently generate approximately $100 million in annual revenue, and the purchase price for the transaction was $237.5 million.
Mark Schroeder, Executive Vice President and President of Diagnostics Laboratories and Chief Operations Officer of Labcorp, expressed excitement about the acquisition, emphasizing the company's commitment to increasing patient access to quality laboratory services. He noted that the acquisition will expand Labcorp’s clinical diagnostics footprint with assets that will immediately benefit from Labcorp's scale and expertise.
Phillip Frost, M.D., Chairman and Chief Executive Officer of Opko, highlighted the sale of these diagnostic assets as an important step in the company's efforts to improve efficiencies and enhance productivity. He stated that the sale enables Opko to focus on its core clinical diagnostics in New York and New Jersey and higher value testing segments, including national oncology and urology franchises, which comprise approximately $400 million in annual revenue.
The press release also mentioned the financial advisors and legal counsels involved in the transaction. Lazard served as Labcorp's financial advisor, with legal counsel provided by Hogan Lovells, Kilpatrick Townsend, and Parker Poe. Piper Sandler & Co. served as Opko's financial advisor, and legal counsel was provided by Greenberg Traurig.
Labcorp, a global leader of innovative and comprehensive laboratory services, has over 67,000 employees serving clients in approximately 100 countries, providing support for 84% of the new drugs and therapeutic products approved in 2023 by the FDA and performing more than 600 million tests for patients around the world.
Opko Health, Inc. (NASDAQ: OPK) is a multinational biopharmaceutical and diagnostics company seeking to establish industry-leading positions in large, rapidly growing markets through its discovery, development, and commercialization expertise and novel proprietary technologies.
The acquisition of Bioreference Health's assets represents a strategic move for Labcorp to enhance its laboratory services network and expand access to its clinical services, further solidifying its position as a global leader in the industry. Following these announcements, the company's shares moved 4.5%, and are now trading at a price of $1.64. For the full picture, make sure to review OPKO Health's 8-K report.
