Labcorp Announces Acquisition of Select Assets of BioReference Health's Innovative Oncology and Related Clinical Testing Services Businesses
Labcorp (NYSE: LH) has announced an agreement to acquire select assets of BioReference Health's oncology and oncology-related clinical testing services from OPKO Health. The transaction, valued at up to $225 million, includes $192.5 million at closing and a potential $32.5 million performance-based earnout.
The acquired assets generate $85-100 million in annual revenue and will expand Labcorp's oncology diagnostic testing portfolio across the United States. The deal is expected to be earnings accretive in the first year and close in the second half of 2025.
Post-acquisition, BioReference Health will maintain its core clinical testing operations in the New York and New Jersey region, including its 4Kscore franchise, which generated approximately $300 million in revenue for 2024.
Labcorp (NYSE: LH) ha annunciato un accordo per acquisire alcuni asset dei servizi di test clinici oncologici e correlati di BioReference Health da OPKO Health. La transazione, del valore di fino a 225 milioni di dollari, include 192,5 milioni di dollari al momento della chiusura e un potenziale guadagno basato sulle performance di 32,5 milioni di dollari.
Gli asset acquisiti generano 85-100 milioni di dollari di fatturato annuo e amplieranno il portafoglio di test diagnostici oncologici di Labcorp negli Stati Uniti. Si prevede che l'affare sia accrescitivo per gli utili nel primo anno e si chiuda nella seconda metà del 2025.
Dopo l'acquisizione, BioReference Health manterrà le sue operazioni di test clinici principali nella regione di New York e New Jersey, inclusa la sua franchigia 4Kscore, che ha generato circa 300 milioni di dollari di fatturato per il 2024.
Labcorp (NYSE: LH) ha anunciado un acuerdo para adquirir activos selectos de los servicios de pruebas clínicas oncológicas y relacionadas de BioReference Health de OPKO Health. La transacción, valorada en hasta 225 millones de dólares, incluye 192,5 millones de dólares al cierre y un posible pago adicional basado en el rendimiento de 32,5 millones de dólares.
Los activos adquiridos generan 85-100 millones de dólares en ingresos anuales y expandirán el portafolio de pruebas diagnósticas oncológicas de Labcorp en los Estados Unidos. Se espera que el acuerdo sea positivo para las ganancias en el primer año y se cierre en la segunda mitad de 2025.
Después de la adquisición, BioReference Health mantendrá sus operaciones principales de pruebas clínicas en la región de Nueva York y Nueva Jersey, incluida su franquicia 4Kscore, que generó aproximadamente 300 millones de dólares en ingresos para 2024.
랩코프 (NYSE: LH)는 OPKO 헬스의 바이오레퍼런스 헬스의 종양학 및 종양학 관련 임상 검사 서비스의 일부 자산을 인수하기 위한 계약을 발표했습니다. 이 거래는 최대 2억 2천5백만 달러의 가치를 가지며, 종료 시점에 1억 9천2백5십만 달러와 성과 기반의 최대 3천2백5십만 달러의 추가 보상이 포함됩니다.
인수된 자산은 연간 8천5백만에서 1억 달러의 수익을 창출하며, 미국 전역에서 랩코프의 종양학 진단 테스트 포트폴리오를 확장할 것입니다. 이 거래는 첫 해에 수익을 증가시킬 것으로 예상되며, 2025년 하반기에 완료될 것입니다.
인수 후, 바이오레퍼런스 헬스는 뉴욕 및 뉴저지 지역에서 4Kscore 프랜차이즈를 포함한 주요 임상 검사 운영을 유지할 것이며, 이는 2024년 동안 약 3억 달러의 수익을 창출했습니다.
Labcorp (NYSE: LH) a annoncé un accord pour acquérir des actifs sélectionnés des services de tests cliniques en oncologie et liés à l'oncologie de BioReference Health auprès d'OPKO Health. La transaction, d'une valeur pouvant atteindre 225 millions de dollars, comprend 192,5 millions de dollars lors de la clôture et un potentiel de 32,5 millions de dollars basé sur la performance.
Les actifs acquis génèrent 85-100 millions de dollars de revenus annuels et élargiront le portefeuille de tests diagnostiques en oncologie de Labcorp aux États-Unis. L'accord devrait être bénéfique pour les bénéfices dès la première année et se clôturer dans la seconde moitié de 2025.
Après l'acquisition, BioReference Health maintiendra ses opérations principales de tests cliniques dans la région de New York et du New Jersey, y compris sa franchise 4Kscore, qui a généré environ 300 millions de dollars de revenus pour 2024.
Labcorp (NYSE: LH) hat eine Vereinbarung zur Übernahme ausgewählter Vermögenswerte der klinischen Testdienstleistungen im Bereich Onkologie und verwandten Bereichen von BioReference Health von OPKO Health bekannt gegeben. Die Transaktion, die bis zu 225 Millionen US-Dollar wert ist, umfasst 192,5 Millionen US-Dollar bei Abschluss und ein potenzielles leistungsbasiertes Earnout von 32,5 Millionen US-Dollar.
Die übernommenen Vermögenswerte generieren 85-100 Millionen US-Dollar an Jahresumsatz und werden das Portfolio der onkologischen Diagnosetests von Labcorp in den Vereinigten Staaten erweitern. Der Deal wird voraussichtlich im ersten Jahr gewinnbringend sein und in der zweiten Hälfte des Jahres 2025 abgeschlossen.
Nach der Übernahme wird BioReference Health seine Kernaktivitäten im Bereich klinische Tests in der Region New York und New Jersey aufrechterhalten, einschließlich seiner 4Kscore-Franchise, die für 2024 etwa 300 Millionen US-Dollar an Umsatz generiert hat.
- Acquisition adds $85-100M in annual revenue
- Deal expected to be earnings accretive in year one
- Expands Labcorp's oncology diagnostic testing portfolio
- Strategic enhancement of market leadership in oncology testing
- Significant upfront cash payment of $192.5M required
- Integration and regulatory approval risks may delay closing
- Performance-based earnout of $32.5M adds uncertainty to final acquisition cost
Insights
Labcorp's acquisition of BioReference Health's oncology assets represents a strategically sound transaction with favorable economics. The purchase price of up to
The explicitly stated expectation of first-year earnings accretion suggests operational synergies and efficient capital deployment. For a company of Labcorp's size (
For OPKO Health, divesting these assets helps streamline BioReference Health's operations toward profitability while retaining their core
This acquisition reinforces Labcorp's strategic focus on expanding its comprehensive testing capabilities in oncology, one of the most critical segments in diagnostic medicine. Oncology testing requires specialized expertise and infrastructure, areas where scale and capabilities matter significantly. By integrating BioReference's oncology testing assets, Labcorp strengthens its competitive position while providing broader access to its comprehensive laboratory services.
The transaction enhances Labcorp's already extensive portfolio of cancer diagnostic tests, which is important for comprehensive patient profiling and treatment selection. This expanded capacity should benefit oncologists and patients by providing more seamless access to Labcorp's testing infrastructure and scientific expertise.
For OPKO Health, the strategic decision to retain the proprietary 4Kscore prostate cancer test while divesting other oncology assets demonstrates focused portfolio management. This allows BioReference to concentrate on core operations in NY/NJ while potentially expanding its urology franchise built around their proprietary test.
This deal reflects the ongoing trend of strategic consolidation in specialized laboratory services, where operational efficiency and comprehensive test offerings create competitive advantages. The expected H2 2025 closing timeline provides ample opportunity for regulatory approvals and integration planning to ensure a successful transition of services.
Transaction to extend Labcorp's leadership in oncology and expand access to the company's high-quality clinical laboratory services
Through this transaction, Labcorp will acquire BioReference Health's laboratory testing businesses focused on oncology and oncology-related clinical testing services across
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
The assets that Labcorp will be acquiring currently generate approximately
Upon closing of this transaction, BioReference Health's operations will include its core clinical testing operations in the
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
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
FAQ
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