Labcorp, a global leader in laboratory services, has announced its acquisition of select assets of BioReference Health, a subsidiary of OPKO Health. This strategic move is aimed at enhancing Labcorp’s laboratory services network and expanding access to high-quality clinical laboratory services across the United States, excluding New York and New Jersey.
The transaction involves Labcorp acquiring BioReference Health’s laboratory testing businesses focused on clinical diagnostics and reproductive and women’s health. This includes patient service centers (PSCs), certain customer contracts, and operating assets. However, BioReference Health will continue to offer oncology and urology diagnostic services nationwide, maintaining full operations in New York and New Jersey.
Mark Schroeder, Labcorp’s Executive Vice President and President of Diagnostics Laboratories, expressed Labcorp’s commitment to maintaining excellent customer service while expanding access and convenience for patients nationwide. Labcorp aims to leverage its expertise and scale to achieve better health outcomes for patients.
The acquisition is expected to provide patients, physicians, and customers with greater access to Labcorp’s comprehensive, high-quality laboratory services, scientific expertise, and expanded testing capabilities in key regions across the country.
Phillip Frost, M.D., Chairman and CEO of OPKO Health, highlighted the transaction as part of OPKO’s effort to streamline its laboratory services business while positioning BioReference Health for sustained growth and profitability. The assets being acquired by Labcorp currently generate approximately $100 million in annual revenue, with a purchase price of $237.5 million.
The transaction is subject to customary closing conditions and regulatory approvals, including under the Hart-Scott-Rodino Antitrust Improvements Act of 1976. It is anticipated to close in the second half of 2024.
