Opko Health stock soars on $722M BioReference asset sale

Investing.com -- Opko Health Inc (NASDAQ: OPK) shares surged 20% in premarket trading Thursday after Labcorp Holdings Inc (NYSE: LH) agreed to acquire select assets of BioReference Health for $722 million in cash.

Labcorp will acquire BioReference Health's laboratory testing businesses focused on clinical and women's health testing services, urology, corrections and certain operational assets, including over 80 patient service centers. The purchase price includes up to an additional $150 million in an earnout based on revenue from the 4Kscore Test.

The transaction includes BioReference Health's proprietary 4Kscore Test, an FDA-approved blood test that helps predict the likelihood of finding aggressive prostate cancer before a biopsy decision. Labcorp expects the business revenue to be approximately $250 million in the first year after close.

"This transaction will allow OPKO to streamline operations and focus our resources on our biopharmaceutical business," said Phillip Frost, Chairman and Chief Executive Officer of OPKO. "Labcorp's national scale and capabilities will broaden patient and provider access to BioReference's 4Kscore Test to many more patients across the country."

The purchase price is subject to adjustment based on closing business revenues. The transaction is subject to regulatory approvals and customary closing conditions. Until the transaction closes, both companies will continue to operate independently.

Piper Sandler is serving as OPKO's exclusive financial advisor, and Greenberg Traurig is serving as legal counsel. Lazard is serving as Labcorp's financial advisor, with Hogan Lovells Cadwalader US serving as lead transaction counsel.

Original Article

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