Labcorp Buys OPKO's BioReference Diagnostics Assets for Up to $872M
LH sits 32% above its 52-week low of $244.52 on light trading volume (0.2× avg).
Summary
Labcorp agreed to acquire select BioReference Health assets from OPKO Health for up to $872M — $722M cash at closing plus up to $150M tied to 4Kscore Test revenue. The deal adds clinical, women's health and urology testing, more than 80 patient service centers, and the FDA-approved 4Kscore prostate cancer blood test. Labcorp expects the acquired operations to generate roughly $250M in first-year revenue, a modest bolt-on relative to its $14.7B+ annual revenue base, and William Blair called the sub-3x forward sales multiple reasonable. For OPKO, this is a strategic exit from diagnostics to focus on biopharmaceuticals; its shares jumped 17.88% to $1.61 while Labcorp rose 1.79% to $323.01. The transaction still needs regulatory approval and customary closing conditions, so both companies operate independently until then. Watch for antitrust clearance and the closing timeline, which will determine when the $250M revenue contribution begins flowing into Labcorp's results.
At the time of this announcement, LH was trading at $322.40 on NYSE in the Life Sciences sector, with a market capitalization of approximately $26.1B. The 52-week trading range was $244.52 to $341.80. This news item was assessed with positive market sentiment and an importance score of 8 out of 10. Source: Benzinga.