Labcorp Acquisition to Strengthen Specialty Testing and Prostate Cancer Assessment

Access to comprehensive clinical laboratory testing is important for patients and physicians who rely on specialty diagnostics and convenient service locations. In prostate cancer evaluation, blood-based tools can help estimate the risk of aggressive disease before biopsy. A newly announced acquisition agreement aims to broaden access to specialty laboratory services, including an FDA-approved blood test for aggressive prostate cancer risk.

Under the agreement, Labcorp (Burlington, NC, USA) will acquire select assets of BioReference Health, LLC (Elmwood Park, NJ, USA), a wholly owned subsidiary of OPKO Health (Miami, FL, USA). The transaction includes laboratory testing businesses focused on clinical and women’s health services, urology, corrections, and certain operational assets. It also includes more than 80 patient service centers, further expanding the service network associated with the acquired operations.

Labcorp will also acquire BioReference Health’s proprietary 4Kscore Test. The 4Kscore Test is an FDA-approved blood test that helps predict the likelihood of finding aggressive prostate cancer before a biopsy decision. When complete, the transaction is expected to give patients, physicians and customers greater access to comprehensive laboratory services, a broad specialty testing menu, a convenient patient service center network, and data analytics and digital tools.

The purchase price is USD 722 million in cash at closing, subject to an upward or downward adjustment based on closing business revenues. The agreement also includes up to an additional USD 150 million in an earnout based on revenue from the 4Kscore Test. Labcorp expects the business revenue to be approximately USD 250 million in the first year after close, based on its current post-closing forecasts.

The transaction is subject to regulatory approvals and customary closing conditions. Until closing, there will be no changes to operations or services. Labcorp and OPKO Health will continue to operate independently until the transaction is complete.

“This transaction will allow OPKO to streamline operations and focus our resources on our biopharmaceutical business. Labcorp’s national scale and capabilities will broaden patient and provider access to BioReference’s 4Kscore Test to many more patients across the country. We believe this transaction is an important catalyst to further unlock additional value for our shareholders,” said Phillip Frost, M.D., Chairman and Chief Executive Officer of OPKO.

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