Labcorp Enters into Agreement with OPKO Health to Acquire Select Assets of BioReference Health

Labcorp will pay up to $872M for OPKO Health's BioReference Health assets, including the 4Kscore prostate cancer test. The deal was announced on Oct. 15, 2023.

Labcorp (LH) shares fell after announcing an $872M deal to acquire BioReference Health assets from OPKO, with up to $150M tied to the 4Kscore prostate cancer test's revenue. Investors are concerned about integration risks and cash outlay, though long-term growth prospects remain. Medicare reimbursement cuts and debt levels are additional risks.

Labcorp agreed to acquire OPKO Health's remaining BioReference Health assets for up to $872M, including clinical diagnostics and the 4Kscore prostate cancer test. OPKO shares rose 20% premarket. The deal follows prior acquisitions of BioReference units, allowing OPKO to focus on biopharmaceuticals. Labcorp expects the acquired businesses to generate $250M in annual revenue.

OPKO Health (OPK) agreed to sell BioReference's lab testing assets to Labcorp for $722M upfront, plus potential $150M earnout over 10 years. The deal, not contingent on financing, is subject to regulatory approval and may include a $28.88M termination fee if terminated for antitrust reasons. Closing is expected by Oct 14, 2026.

Labcorp is acquiring laboratory assets from BioReference Health, an OPKO Health subsidiary, for up to $872m. The deal includes BioReference's clinical and women's health testing services, urology, corrections, and the 4Kscore prostate cancer test. Labcorp will pay $722m upfront, with up to $150m in potential earnouts. The transaction aims to expand Labcorp's diagnostic services and streamline OPKO's operations.

Labcorp will acquire laboratory testing assets from BioReference Health, an Opko Health subsidiary, for $722M, with up to $150M more contingent on prostate cancer test revenue. The total price may vary based on closing revenues, according to the companies.