Labcorp and OPKO Health announced on March 28 that they have entered into an agreement for Labcorp to acquire select assets of BioReference Health, a wholly owned subsidiary of OPKO Health.
Through this transaction, Labcorp will acquire BioReference Health’s laboratory testing businesses focused on clinical diagnostics and reproductive and women’s health across the United States outside of New York and New Jersey. Also included are BioReference’s patient service centers and certain customer contracts and operating assets. The assets being acquired currently generate approximately $100 million in annual revenue, according to the original deal press release from March 28, 2024.
LabCorp, an S&P 500 company, is a global life sciences company that is integrated with guiding patient care, providing clinical laboratory and end-to-end drug development services. The company provides information to help doctors, hospitals, pharmaceutical companies, researchers and patients make decisions. LabCorp has more than 80,000 employees across more than 100 countries and had reported annual revenue of $12.16 billion in 2023, according to the company’s 2022 fourth quarter and full-year results.
BioReference Health will continue to offer oncology and urology diagnostic services nationwide, as well as maintain its full operations in New York and New Jersey. When complete, the transaction is expected to provide patients, physicians and customers with greater access to Labcorp’s laboratory services, scientific expertise and expanded testing capabilities in key regions across the country. The transaction, which is anticipated to close in the second half of 2024, meets Labcorp’s strategic and financial criteria.
Lazard is serving as Labcorp’s financial advisor, and Hogan Lovells, Kilpatrick Townsend & Stockton and Parker Poe are serving as legal counsel. Piper Sandler is serving as OPKO’s financial advisor, and Greenberg Traurig, LLP is serving as legal counsel.
According to data captured in the LevinPro HC database, this transaction represents the 35th Laboratories, MRI and Dialysis acquisition of 2024, and the 19th in the diagnostic specialty. There were 63 diagnostic transactions announced during 2023, and 70 announced during 2022.
