Labcorp, a leading healthcare diagnostics company listed on the NYSE under the ticker symbol LH, has recently announced its agreement to acquire certain assets of BioReference Health. BioReference Health is a well-established lab operator based in New Jersey and is currently owned by OPKO Health, a company listed on NASDAQ under the ticker symbol OPK. The acquisition is valued at $237.5 million and is anticipated to be completed in the second half of 2024.
OPK shares saw a rise of approximately 7% in the premarket following the announcement, while Labcorp (LH) remained unchanged.
Labcorp (LH) has agreed to acquire the lab testing businesses of BioReference that specialize in clinical diagnostics and reproductive and women’s health, excluding the regions of New York and New Jersey, as per the terms of the agreement.
According to the companies, the transaction encompasses BioReference’s patient service centers, specific customer contracts, and operating assets.
OPKO currently generates approximately $100 million in annual revenue from the assets that are up for sale.
“By completing this transaction, we have successfully streamlined our laboratory services business, while still maintaining its fundamental operations. This strategic move positions BioReference Health for continued growth and profitability,” commented Phillip Frost, CEO of OPK.
