BURLINGTON – Labcorp has agreed to pay $722 million in cash for select BioReference Health assets, a deal that would add more than 80 patient service centers and a prostate-cancer blood test to the North Carolina company’s diagnostics network.
The Burlington-based laboratory-services company and OPKO Health announced the agreement Oct. 15. Labcorp would acquire BioReference businesses focused on clinical and women’s health testing, urology and corrections, along with certain operating assets.
The agreement also includes BioReference’s 4Kscore Test, an FDA-approved blood test used to estimate the likelihood of aggressive prostate cancer before a biopsy decision. Labcorp said the acquisition would broaden access to the test and expand its specialty-testing capabilities.
Labcorp would pay $722 million in cash at closing, subject to an adjustment based on closing business revenue. The agreement also provides for an earnout of as much as $150 million tied to 4Kscore revenue, putting the transaction’s potential value at up to $872 million.
The company expects the acquired business to generate about $250 million in revenue during its first year after closing, based on Labcorp’s current forecast. That projected revenue would represent a sizable addition to its diagnostics operation, though the transaction is not yet complete.
Health Exec independently reported the purchase price, the potential earnout, the patient-service-center network and the 4Kscore asset. The publication also noted that Labcorp shares rose after the announcement, while OPKO shares climbed as investors assessed the sale.
OPKO said the divestiture would streamline its operations and let the Miami-based company focus resources on its biopharmaceutical business. Labcorp said its national network and data tools could extend the reach of BioReference’s specialty testing.
The agreement remains subject to regulatory approvals and customary closing conditions. The companies said their operations and services will remain separate until closing.
For North Carolina, the immediate business consequence is a major acquisition by one of the state’s largest publicly traded life-sciences companies. The cited records do not announce Burlington-area jobs, layoffs or a local facility change tied to the transaction.
Image: Labcorp exterior in Burlington. Labcorp/NC Business Desk.