Labcorp to acquire BioReference Health assets from OPKO for up to $872 million
Labcorp announced an agreement to buy BioReference Health’s laboratory testing businesses from OPKO Health for $722 million in cash, with an additional earn‑out of up to $150 million tied to future 4Kscore® test revenue. The transaction includes more than 80 patient service centers and the FDA‑approved 4Kscore prostate‑cancer test. Labcorp expects the acquired operations to generate about $250 million of revenue in the first year after closing, while OPKO will use the proceeds to focus on its biopharmaceutical pipeline. The deal remains subject to regulatory approvals and customary closing conditions.
Why it matters
The cash outlay of $722 million and possible $150 million earn‑out represent a material capital deployment for Labcorp, potentially affecting its balance sheet and earnings guidance (Labcorp said the acquisition will expand its diagnostic capabilities). OPKO’s shareholders benefit from a sizable premium, reflected in a sharp rise in OPKO’s share price after the announcement.
Key facts
- 1Labcorp will pay $722 million in cash at closing, subject to adjustment based on closing revenues. prnewswire.com
- 2An additional earn‑out of up to $150 million is tied to revenue from the 4Kscore test. prnewswire.com
- 3The total potential consideration is up to $872 million. rttnews.com
- 4Labcorp expects the acquired businesses to generate approximately $250 million of revenue in the first year after closing. prnewswire.com
- 5The transaction includes more than 80 patient service centers and the 4Kscore prostate‑cancer test. prnewswire.com
- 6OPKO shares rose about 20% in pre‑market trading after the announcement. investing.com
Open questions
- Share‑price reaction for OPKO is reported variously as +7.35%, +11.7%, +16%, and +20%.
Summary written by AlphAI AI Desk from 18 of 18 sources. Not investment advice. Figures are as stated by the linked sources.