OPKO Health (OPK) Lower Following Cautious Commentary (BRLI)

OPKO Health, Inc. (NYSE: OPK) is lower Monday amid cautious commentary out over the weekend with respect to its merger with Bio-Reference Labs (Nasdaq: BRLI).

Barron's noted over the weekend that the deal makes them uneasy. OPKO has various medical products in development, while BRLI is able to realize around $1 billion in annual revenue without generating free-cash flow. OPKO is unprofitable, while BRLI's earnings are all but certain.

OPKO has largely gotten its $7 billion market cap valuation from a series of reverse mergers over the years. Founder Phillip Frost also has a 40 percent stake in the company.

Net revenue at BRLI has fallen from 24 percent of gross billings in 2010 down to under 20 percent last year. While the company has an improved PSA test for prostate cancer, that segment hasn't shown stellar growth as of yet.

Shares of OPKO are down 0.6 percent, while BRLI is slightly higher.

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