Labcorp, a provider of comprehensive lab services, and OPKO Health, Inc., a multinational biopharmaceutical and diagnostics company, entered into an agreement for Labcorp to acquire select assets of BioReference Health, a wholly owned subsidiary of OPKO Health.
Labcorp Expand Lab Testing Services
Through this transaction, Labcorp will acquire BioReference Health’s laboratory testing businesses focused on clinical diagnostics and reproductive and women’s health across the United States outside of New York and New Jersey. This transaction includes patient service centers (PSCs) and certain customer contracts and operating assets. BioReference Health will continue to offer oncology and urology diagnostic services nationwide, as well as maintain its full operations in New York and New Jersey.
“Labcorp is committed to building on the excellent customer service that physicians and health systems have come to expect from BioReference Health, while expanding access and convenience for patients across the country,” says Mark Schroeder, Executive Vice President and President of Diagnostics Laboratories and Chief Operations Officer of Labcorp. “We look forward to working with the BioReference Health team to ensure a smooth transition following the close of the transaction. Combined with Labcorp’s expertise and scale, we will help achieve better health outcomes for patients.”
Aiming for Expanded Testing Capabilities
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 in key regions across the country, the company says
“Through this transaction we are able to significantly streamline our laboratory services business while retaining its core operations, positioning BioReference Health for sustained growth and profitability,” says Phillip Frost, MD, Chairman and Chief Executive Officer of OPKO. “This transaction is part of our previously announced effort to re-establish profitability at our clinical laboratory business while at the same time better positioning OPKO as an innovative biopharmaceutical company.”
The assets that Labcorp will be acquiring currently generate approximately $100 million in annual revenue. The purchase price for the transaction is $237.5 million. The proposed acquisition meets Labcorp’s strategic and financial criteria.
Further reading: Labcorp Launches Blood Test for Risk Assessment and Clinical Management of Preeclampsia
