Labcorp is Set to Acquire Select Assets of BioReference Health of OPK

Core Viewpoint - Labcorp has entered into an agreement to acquire select assets from OPKO Health's subsidiary, BioReference Health, which will enhance its oncology diagnostic capabilities and expand its portfolio in cancer care [1][3]. Financial Details - The acquisition price is up to $225 million, comprising $192.5 million payable at closing and up to $32.5 million in performance-based earnouts. This deal is expected to be accretive to Labcorp's earnings in the first year [2]. Acquisition Specifics - Labcorp will acquire BioReference Health's laboratory testing businesses focused on oncology, which currently generate annual revenues of approximately $85 million to $100 million. The transaction includes customer accounts and other operating assets [3]. Operational Impact - The acquisition is expected to enhance access to Labcorp's laboratory services and testing capabilities for patients and healthcare providers. BioReference Health's operations will include core clinical testing in New York and New Jersey, along with its 4Kscore franchise [4]. Regulatory and Closing Timeline - The transaction is subject to customary closing conditions and state regulatory approvals, with an expected closing in the second half of 2025 [5]. Industry Prospects - The global cancer diagnostics market is projected to grow at a compound annual growth rate of 6.14% from 2025 to 2030, driven by increasing cancer prevalence and advancements in diagnostic technologies [6]. Recent Developments by Labcorp - Labcorp recently launched Labcorp Plasma Complete, a liquid biopsy test for advanced solid tumors, and expanded its laboratory in Raritan, NJ, adding 110,000 square feet of advanced space [6][7]. Competitive Landscape - Labcorp faces competition from major players like Illumina, which is advancing cancer genomics, and NeoGenomics, which is expanding its presence in the Northeast through acquisitions and collaborations [8][10].