#None #Labcorp #OPKO Health #BioReference

Labcorp Expands Portfolio with BioReference Health Acquisition

Labcorp, a leader in laboratory services globally, has taken a bold step by acquiring select assets from BioReference Health, an OPKO Health subsidiary. This move, finalized on September 15, 2025, aims to enhance Labcorp's oncology testing capabilities and broaden access to high-quality laboratory services for patients, healthcare providers, and customers across the United States.

Details of the Acquisition

The acquisition includes BioReference Health’s laboratory testing operations specializing in oncology and related clinical testing services. Labcorp will not only gain access to valuable customer accounts but also vital operational assets in this deal, which amounts to an impressive total of up to $225 million. This figure breaks down into an immediate payment of $192.5 million at the closure of the deal, supplemented by a potential earnout of up to $32.5 million contingent on future performance.

Mark Schroeder, President of Labcorp Diagnostics, highlighted that this acquisition allows them to enhance the quality and scope of their laboratory services. He stated, "With this acquisition, we are providing patients, physicians and customers with expanded access to Labcorp's high-quality laboratory services, scientific expertise and comprehensive testing capabilities." This statement underscores Labcorp’s commitment to advancing cancer care and improving patient outcomes through innovative testing practices.

Significance for BioReference Health

This transaction marks an important milestone for BioReference Health and aligns with their strategy to focus on essential clinical testing operations, particularly in the New York and New Jersey regions. Phillip Frost, M.D., the Chairman and CEO of OPKO, mentioned that their focus on growing the 4Kscore® Test franchise remains a priority. The continuation of operations at BioReference Health is expected to yield robust revenues, which reached approximately $300 million in 2024.

The agreement allows BioReference Health to optimize its test offerings and position itself better for sustainable profitability. "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," Frost explained.

Financial Insights

Labcorp engaged Lazard as its financial advisor for the acquisition while Hogan Lovells and Kilpatrick Townsend served as legal advisors. In contrast, OPKO Health utilized Piper Sandler & Co. for financial advice and Greenberg Traurig for legal matters, showcasing the level of care taken to ensure the success of this significant transaction.

Future Prospects

As a global leader, Labcorp’s acquisition is expected to optimize laboratory services further, enhancing operational efficiencies and potentially leading to the development of innovative cancer care solutions. The company employs nearly 70,000 individuals and operates in around 100 countries, providing crucial support for new drug approvals and facilitating over 700 million tests annually for patients worldwide.

In conclusion, Labcorp's strategic acquisition of BioReference Health assets not only marks a pivotal moment in strengthening its commitment to cancer care but also emphasizes the increasing importance of innovative laboratory services in today’s healthcare landscape. The acquisition reflects a forward-looking approach to comprehensive and accessible healthcare solutions.