Labcorp agrees to acquire select laboratory testing assets from Opko Health's BioReference Health unit for up to $872 million, including $722 million in cash and up to $150 million in earnouts. The deal includes over 80 patient service centers and the proprietary 4Kscore prostate cancer test. Opko shares rose 20% premarket as the sale allows the company to refocus on biopharmaceuticals, including its kidney therapy Rayaldee.
Financial terms of the transaction
- ▪The final purchase price for the BioReference Health assets remains subject to adjustment based on closing business revenues.
- ▪Labcorp Holdings Inc. agreed to acquire select laboratory testing assets of Opko Health's subsidiary BioReference Health in a transaction valued at up to $872 million.
- ▪Labcorp agreed to pay Opko Health $722 million in upfront cash, alongside a potential earnout payment of up to $150 million contingent on revenue from the 4Kscore test.
The 4Kscore prostate cancer test
- ▪The transaction includes BioReference Health's proprietary 4Kscore test, an FDA-approved blood test used to evaluate the likelihood of aggressive prostate cancer prior to a biopsy.
- ▪BioReference Health's 4Kscore prostate cancer test generated $27.1 million in revenue during 2025.
Scope and projected revenue of acquired assets
- ▪Labcorp's acquisition encompasses BioReference Health's clinical diagnostics, women's health, urology, and corrections testing businesses, along with over 80 patient service centers.
- ▪Burlington, North Carolina-based Labcorp expects the acquired BioReference Health assets to generate approximately $250 million in revenue during the first year after closing.
Deal completion requirements and advisors
- ▪In the transaction, Piper Sandler and Greenberg Traurig serve as advisors to Opko Health, while Lazard and Hogan Lovells Cadwalader US advise Labcorp.
- ▪The transaction requires regulatory clearance and customary closing conditions, with both Labcorp and Opko Health continuing independent operations until the deal completes.
- ▪Neither Labcorp nor Opko Health disclosed an expected closing date for the BioReference Health asset sale.
Opko Health deal rationale
- ▪Opko Health Chairman and Chief Executive Officer Phillip Frost stated that Labcorp's national scale will broaden patient and provider access to BioReference's 4Kscore test.
- ▪Miami-based Opko Health stated the sale will streamline its operations and shift focus toward its biopharmaceutical business, which includes its FDA-approved kidney disease therapy Rayaldee.
Story comments
Loading comments…