Transaction to extend Labcorp's leadership in
oncology and expand access to the company's high-quality
clinical laboratory services
BURLINGTON, N.C. and MIAMI, March 11,
2025 /PRNewswire/ -- Labcorp (NYSE: LH), a
global leader of innovative and comprehensive laboratory services,
and OPKO Health, Inc. (Nasdaq: OPK), a multinational
biopharmaceutical and diagnostics company, announced today 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.
"By integrating BioReference Health's oncology and related
clinical testing services into our portfolio, we're providing
greater access to our world-class services to patients, physicians
and healthcare providers across the country," said Mark Schroeder, EVP and President, Diagnostics
Laboratories and Chief Operations Officer, Labcorp. "This
acquisition also aligns with our strategy to lead in oncology and
reinforces our commitment to advancing cancer care through
innovative and comprehensive laboratory services. We look forward
to welcoming our new colleagues and working together to deliver
even greater value to the healthcare community."
"This transaction with Labcorp represents another important step
for OPKO Health to further streamline BioReference Health's
operations to achieve profitability," said Phillip Frost, M.D., Chairman and Chief
Executive Officer of OPKO. "BioReference Health will maintain its
core clinical testing services in the New
York and New Jersey region
and have the ability to further expand its urology franchise with
its proprietary 4Kscore test. We believe the sale of these oncology
diagnostic assets is an important catalyst to unlock additional
value."
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.
Lazard is serving as Labcorp's financial advisor, and Hogan
Lovells and Kilpatrick Townsend are
serving as legal counsel.
Piper Sandler & Co. is
serving as OPKO Health's financial advisor, and Greenberg Traurig
is serving as legal counsel.
About Labcorp
Labcorp (NYSE: LH) is a global leader of
innovative and comprehensive laboratory services that helps
doctors, hospitals, pharmaceutical companies, researchers and
patients make clear and confident decisions. We provide insights
and advance science to improve health and improve lives through our
unparalleled diagnostics and drug development laboratory
capabilities. The company's nearly 70,000 employees serve clients
in approximately 100 countries, provided support for more than 75%
of the new drugs and therapeutic products approved in 2024 by the
FDA, and perform more than 700 million tests annually for patients
around the world. Learn more about us at www.labcorp.com.
About OPKO
OPKO Health, Inc. (Nasdaq: OPK) is a
multinational biopharmaceutical and diagnostics company that seeks
to establish industry-leading positions in large, rapidly growing
markets by leveraging its discovery, development, and
commercialization expertise and novel and proprietary technologies.
For more information, visit www.opko.com.
Cautionary Statement Regarding Forward-Looking
Statements
This press release contains forward-looking
statements, including, but not limited to, statements with respect
to (a) the anticipated impact of the transaction including
expanding access to comprehensive, high-quality laboratory
services, scientific expertise and expanded testing capabilities,
including for oncology; (b) anticipated timing to closing, (c) the
potential earnout payment, (d) other anticipated potential benefits
of the acquisition when combined with Labcorp and (e) anticipated
benefits to BioReference Health and OPKO, including BioReference
Health's ability to maintain its core testing business and expand
its urology franchise, and achieve profitability.
Each of the forward-looking statements is subject to change
based on various important factors, many of which are beyond OPKO
Health and the company's control. These factors, in some cases,
have affected and in the future (together with other factors) could
affect the company's ability to implement the company's business
strategy, and BioReference Health's ability to achieve is business
goals, and actual results could differ materially from those
suggested by these forward-looking statements. As a result, readers
are cautioned not to place undue reliance on any of the
forward-looking statements.
Neither the company nor OPKO Health has any obligation to
provide any updates to these forward-looking statements even if its
expectations change. All forward-looking statements are expressly
qualified in their entirety by this cautionary statement. Further
information on potential factors, risks and uncertainties that
could affect operating and financial results is included in each of
the company's and OPKO Health's most recent Annual Report on Form
10-K and subsequent Forms 10-Q, including in each case under the
heading RISK FACTORS, and in each of the company's and OPKO
Health's other filings with the SEC. The information in this
presentation should be read in conjunction with a review of OPKO
Health's and the company's filings with the SEC including the
information in each of the company's and OPKO Health's most recent
Annual Report on Form 10-K, and subsequent Forms 10-Q, under the
heading "MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS".
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SOURCE Labcorp Holdings Inc
