Labcorp to Acquire Select Assets of BioReference Health for $237.5M
In a significant move within the healthcare sector, Laboratory Corporation of America Holdings (Labcorp) announced on March 28, 2024, its agreement to acquire certain assets of BioReference Health, a subsidiary of Opko Health. The acquisition, valued at $237.5 million, signifies Labcorp’s strategic initiative to bolster its diagnostic capabilities and broaden its presence in key healthcare segments across the United States.
The journey leading to this acquisition began back in the summer of 2015 when Opko Health finalized its acquisition of BioReference Laboratories for $1.47 billion. This transaction positioned BioReference as a prominent player in clinical diagnostics, particularly focusing on genetic sequencing and oncology diagnostics.
Under the terms of the agreement, Labcorp will take over BioReference’s laboratory testing businesses specializing in clinical diagnostics and reproductive and women’s health services, excluding operations in New York and New Jersey. This encompasses patient service centers, customer contracts, and essential operating assets.
Labcorp’s decision to acquire these assets underscores its dedication to enhancing its service portfolio and driving operational efficiencies. By integrating BioReference’s assets, Labcorp aims to fortify its diagnostic offerings and extend its geographic reach, ultimately providing greater value to patients and healthcare providers alike.
Phil Frost CEO and Chairman of Opko Health
Opko Health, BioReference’s parent company, expressed confidence in the transaction’s ability to streamline laboratory services while maintaining core operations for sustained growth and profitability. This strategic realignment reflects Opko’s commitment to fostering innovation in biopharmaceuticals while maximizing the value of its clinical laboratory business.
Labcorp’s acquisition of select BioReference Health assets underscores the dynamic nature of the healthcare industry, where consolidation and strategic partnerships play a pivotal role in shaping the future of healthcare delivery. As the integration process progresses, stakeholders can anticipate enhanced diagnostic solutions and ongoing advancements in healthcare delivery.
