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Labcorp Announces Acquisition of Select Assets of BioReference Health’s Diagnostics Business

BURLINGTON, N.C. and MIAMI, March 28, 2024 /PRNewswire/ — Labcorp (NYSE: LH), a global leader of innovative and comprehensive laboratory services, and OPKO Health, Inc. (Nasdaq: OPK), a multinational biopharmaceutical and diagnostics company, announced today that they have entered into an agreement for Labcorp to acquire select assets of BioReference Health, a wholly owned subsidiary of OPKO Health.

BioReference

   

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.

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.

“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,” said 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.”

“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,” said Phillip Frost, M.D., 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.

The transaction is subject to customary closing conditions and applicable regulatory approvals, including under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended. The transaction is anticipated to close in the second half of 2024.

Lazard is serving as Labcorp’s financial advisor, and Hogan Lovells, Kilpatrick Townsend and Parker Poe are serving as legal counsel.

Piper Sandler & Co. is serving as OPKO’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 more than 67,000 employees serve clients in approximately 100 countries, provided support for 84% of the new drugs and therapeutic products approved in 2023 by the FDA and performed more than 600 million tests for patients around the world. Learn more about us at www.labcorp.com.

About BioReference Health

BioReference® Health LLC, an OPKO Health, Inc. Company, empowers confident healthcare decisions by prioritizing service, creating innovative solutions, and offering scientific expertise in oncology, urology, and women’s health. Headquartered in Elmwood Park, New Jersey, BioReference Health operates 10 laboratory facilities around the country, is in-network with the largest health plans in the United States and processes more than 12 million tests, annually. BioReference Health provides credible and tailored solutions for a variety of customers and patients, including medical practices small and large, hospitals and health systems, correctional institutions, government agencies, educational systems, and sport leagues. In addition to an extensive test menu with 99 percent of tests performed in-house, BioReference Health’s differentiated offerings include large-scale health screening programs, on-demand mobile phlebotomy, and transformative business solutions that optimize laboratory management. For more information visit https://www.bioreference.com.

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.

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Tamia Sumpter

Tamia is a driven senior undergraduate Bioengineering student currently enrolled at Clemson University. With a strong foundation in her field, she has honed her skills through hands-on experience in research and development at Eli Lilly & Company. During her time in the ADME department, Tamia contributed significantly by working on siRNAs and their applications in finding In Vitro-In Vivo Correlation (IVIVC). Looking ahead, Tamia has set her sights on a promising career in law. She aspires to specialize in Intellectual Property Law, with a particular focus on serving as in-house counsel for leading medical device or pharmaceutical companies. Her enthusiasm for this role is palpable as she prepares to embark on her legal journey! She is also a proud member of the Omicron Phi chapter of Delta Sigma Theta Sorority, Inc., PEER Mentor for Clemson PEER/WiSE, and currently serves as the President of Clemson Bioengineering Organization (CBO). With her unique blend of scientific knowledge and legal interests, Tamia is poised to make a meaningful impact in the healthcare and life sciences industries.