Labcorp completes acquisition of BioReference Health oncology assets

BURLINGTON, N.C./MIAMI - Labcorp (NYSE:LH), a prominent $23.1 billion healthcare diagnostics leader currently trading near its 52-week high, has completed its acquisition of select assets from BioReference Health, a wholly owned subsidiary of OPKO Health, Inc. (Nasdaq:OPK), the companies announced Monday.

The transaction, valued at up to $225 million, includes BioReference Health’s laboratory testing businesses focused on oncology and oncology-related clinical testing services across the United States. Labcorp paid $192.5 million at closing, with potential for an additional $32.5 million earnout based on performance. According to InvestingPro data, Labcorp generates $13.5 billion in annual revenue and maintains a strong financial health score, suggesting robust capacity for strategic acquisitions.

"With this acquisition, we are providing patients, physicians and customers with expanded access to Labcorp’s high-quality laboratory services, scientific expertise and comprehensive testing capabilities," said Mark Schroeder, President of Labcorp Diagnostics and Chief Operations Officer.

BioReference Health will retain its core clinical testing operations in the New York and New Jersey region and its 4Kscore Test franchise, which generated approximately $300 million in revenue for 2024.

Phillip Frost, Chairman and CEO of OPKO Health, stated that the company intends to use a portion of the proceeds to fund its recently expanded share repurchase authorization.

Lazard acted as financial advisor to Labcorp, while Piper Sandler & Co. served as OPKO Health’s financial advisor for the transaction.

The information in this article is based on a press release statement from the companies. For deeper insights into Labcorp’s financial metrics and 12 additional analyst-verified ProTips, visit InvestingPro, where you can access comprehensive research reports covering 1,400+ top US stocks.

In other recent news, Laboratory Corporation of America (Labcorp) has made significant strides with the launch of the first FDA-cleared blood test for Alzheimer’s disease. This new diagnostic tool, developed by Fujirebio Diagnostics, Inc., offers a less invasive alternative to traditional methods and could potentially transform Alzheimer’s diagnosis. Financially, Labcorp reported strong second-quarter results for 2025, surpassing analysts’ expectations with an adjusted earnings per share of $4.35 and revenue of $3.53 billion. These figures exceeded the forecasted EPS of $4.17 and projected revenue of $3.48 billion, showcasing the company’s robust performance.

Analyst firms have responded positively to these developments, with Jefferies raising its price target for Labcorp to $300, maintaining a Buy rating. Evercore ISI also adjusted its price target to $300, citing strong diagnostic growth, while Leerink Partners increased its target to $323, highlighting the company’s impressive earnings season. These adjustments reflect confidence in Labcorp’s continued growth, driven by both organic and acquisition-based advancements in its diagnostic and biopharma services. Overall, these recent developments underscore Labcorp’s strong position in the healthcare sector.

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