Labcorp Acquires Assets from OPKO Health to Strengthen Oncology Services

Strategic Asset Acquisition Enhances Labcorp's Oncology Services

On September 15, 2025, Labcorp, a prominent player in laboratory services, announces the acquisition of select assets from BioReference Health, a subsidiary of OPKO Health, Inc. The deal, which is valued at up to $225 million, includes a substantial upfront payment of $192.5 million and an additional performance-based earnout of up to $32.5 million. This acquisition is strategically aligned with Labcorp's mission to enhance its oncology and oncology-related clinical testing services across the United States, thereby improving the accessibility of high-quality laboratory services for both patients and healthcare providers. Mark Schroeder, President of Labcorp Diagnostics, emphasizes that this move reinforces Labcorp's commitment to advancing cancer care through expanded capabilities and resources.

The integration of BioReference Health's assets is expected to significantly bolster Labcorp's existing oncology services, positioning the company to better meet the growing demand for cancer diagnostics and treatment options. With the cancer care market continuing to evolve, Labcorp's acquisition reflects a proactive approach to capturing market share and providing comprehensive testing solutions. By enhancing its oncology portfolio, Labcorp aims to improve patient outcomes and streamline the clinical testing process for physicians, ultimately contributing to more effective cancer management strategies.

For OPKO, this transaction marks a crucial turning point, allowing the company to refocus its efforts on its core clinical testing operations and expand the growth of its flagship 4Kscore® Test franchise. The 4Kscore® Test, which has demonstrated considerable revenue potential, generated approximately $300 million in 2024. CEO Phillip Frost, M.D., highlights that the proceeds from the sale will also be utilized to support an expanded share repurchase program, reflecting OPKO's commitment to enhancing shareholder value while strategically repositioning itself in the marketplace.

In addition to the strategic implications of this acquisition, it is noteworthy that Labcorp employs nearly 70,000 individuals and operates in about 100 countries, demonstrating its extensive reach in the medical laboratory field. The company supports over 75% of new drugs approved by the FDA, performing more than 700 million tests annually, which underscores its critical role in the healthcare ecosystem. The financial advisory roles for the transaction were managed by Lazard for Labcorp and Piper Sandler & Co. for OPKO, with legal guidance provided by Hogan Lovells and Kilpatrick Townsend for Labcorp and Greenberg Traurig for OPKO.

Overall, this acquisition not only deepens Labcorp's capabilities in oncology but also positions OPKO for sustainable growth in its remaining operations, reflecting a significant development in the landscape of clinical laboratory services.