The deal includes customer accounts and operating assets focused on cancer-related clinical testing services across the United States.
Labcorp has completed its acquisition of select assets from BioReference Health’s oncology and related clinical testing services businesses for up to $225 million, the companies announced.
The transaction includes $192.5 million paid at closing and up to $32.5 million in earnout payments based on performance. BioReference Health is a wholly owned subsidiary of OPKO Health Inc.
The acquisition encompasses laboratory testing businesses focused on oncology and oncology-related clinical testing services across the United States, including certain customer accounts and other operating assets.
“With this acquisition, we are providing patients, physicians, and customers with expanded access to Labcorp’s high-quality laboratory services, scientific expertise, and testing capabilities,” says Mark Schroeder, president of Labcorp Diagnostics and chief operations officer, in a release. “Bringing BioReference Health’s oncology and clinical testing into our portfolio deepens our commitment to advancing cancer care and extends our leadership in oncology.”
Strategic Focus on Core Operations
BioReference Health will continue operating its core clinical testing operations in the New York and New Jersey region and its 4Kscore Test franchise, which represented approximately $300 million in revenue for 2024.
“The closing of this transaction marks a significant milestone for BioReference Health,” says Phillip Frost, MD, chairman and chief executive officer of OPKO, in a release. “By focusing on our core clinical testing operations and the continued growth of our 4Kscore Test franchise, we are better positioned to optimize our test menu and achieve sustainable profitability for this subsidiary.”
OPKO Health plans to use a portion of the proceeds to fund its recently expanded share repurchase authorization.
ID 58108948 | Acquisition © Gajus | Dreamstime.com
