Labcorp Announces Acquisition Of Select Assets Of BioReference Health's Diagnostics Business, A Wholly Owned Subsidiary Of OPKO Health For A Purchase Price Of $237.5M
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Labcorp (NYSE:LH) is set to acquire select assets of BioReference Health, a subsidiary of OPKO Health (NASDAQ:OPK), for $237.5M. This acquisition aims to enhance Labcorp's laboratory services network and expand access to high-quality clinical laboratory services across the US, excluding New York and New Jersey. The transaction, expected to close in the second half of 2024, will include patient service centers and certain customer contracts. BioReference Health will retain its oncology and urology diagnostic services and continue full operations in New York and New Jersey. The assets being acquired generate about $100 million in annual revenue.
March 28, 2024 | 12:06 pm
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NEUTRAL IMPACT
OPKO Health is selling select assets of its subsidiary BioReference Health to Labcorp for $237.5M. This move is part of OPKO's strategy to streamline its laboratory services business while focusing on its core operations in oncology and urology diagnostics, aiming for sustained growth and profitability.
For OPKO Health, the sale is part of a strategic refocusing rather than an expansion. The proceeds from the sale could bolster its financial position, but the impact on the stock is more neutral as the company is selling off part of its business to focus on core areas.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 80
POSITIVE IMPACT
Labcorp's acquisition of BioReference Health's assets from OPKO Health for $237.5M is expected to expand its laboratory services and access to clinical diagnostics across the US, excluding New York and New Jersey. This strategic move aims to enhance Labcorp's service offerings and revenue from the acquired assets, which currently generate about $100 million annually.
The acquisition is strategic for Labcorp, expanding its service network and potentially increasing its revenue base. Given the assets' current revenue generation and the expansion of services, this is likely to have a positive short-term impact on Labcorp's stock.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 90