OPKO Health to Sell BioReference Assets to Labcorp for $722 Million Cash
OPKO Health, Inc. (OPK) has agreed to sell select assets of its BioReference Health subsidiary to Labcorp Holdings Inc. (LH) for $722 million in cash at closing, subject to adjustments. The deal includes BioReference's clinical, women's health, urology, and corrections testing operations, along with more than 80 patient service centers and the proprietary 4Kscore Test. OPKO Health is also eligible to receive up to $150 million in earnout payments tied to future revenues from the 4Kscore Test.
The transaction allows OPKO Health to simplify its corporate structure and direct greater capital and operational resources toward advancing its biopharmaceutical pipeline. For Labcorp Holdings Inc., acquiring the specialty testing assets and expanded network expands its specialized diagnostic footprint and is projected to bring in roughly $250 million in revenue during the first year after closing.
Both companies will continue operating independently until the transaction completes. Investors will be monitoring the final closing process, how OPKO Health allocates the cash proceeds to support its biopharmaceutical priorities, and the long-term revenue performance of the 4Kscore Test toward achieving the earnout milestones.
Key points
- OPKO Health agreed to sell select BioReference assets to Labcorp Holdings for $722 million in cash at closing.
- The agreement includes potential earnout payments of up to $150 million tied to revenues from the 4Kscore prostate cancer blood test.
- Labcorp estimates the acquired operations will generate approximately $250 million in revenue during the first year post-closing.
- The transaction includes over 80 patient service centers alongside clinical, women's health, urology, and corrections testing businesses.
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How we writeDisclaimerQuestions and answers
How much is Labcorp paying to acquire OPKO Health's BioReference assets?
Labcorp Holdings Inc. is paying $722 million in cash at closing, subject to adjustments, plus up to $150 million in earnouts tied to 4Kscore Test revenues.
Why is OPKO Health selling part of its diagnostic business?
OPKO Health is making the sale to simplify its operations and concentrate its resources on expanding its core biopharmaceutical business.
Which BioReference assets are included in the transaction?
The deal transfers clinical, women's health, urology, and corrections testing operations, over 80 patient service centers, and the 4Kscore Test to Labcorp.