Enhances Labcorp's laboratory services
network and expands access to its clinical
services
BURLINGTON, N.C. and MIAMI, Sept. 16,
2024 /PRNewswire/ -- Labcorp (NYSE: LH), a global
leader of innovative and comprehensive laboratory services, and
OPKO Health, Inc. (Nasdaq: OPK), a multinational biopharmaceutical
and diagnostics company, announced today the completion of
Labcorp's acquisition of select assets of BioReference Health,
a wholly owned subsidiary of OPKO Health. The transaction is
expected to provide patients, physicians and customers with greater
access to Labcorp's comprehensive, high-quality laboratory
services, scientific expertise and expanded testing capabilities in
key regions across the country.
The acquisition includes BioReference Health's laboratory
testing businesses focused on clinical diagnostics and reproductive
and women's health in the United
States outside of New York
and New Jersey, including certain
patient service centers (PSCs), customer contracts and operating
assets, which currently generate approximately $100 million in annual revenue. The purchase
price for the transaction is $237.5
million.
"This transaction demonstrates our commitment to increase
patient access to quality laboratory services, and we are thrilled
to close an acquisition that will expand our clinical diagnostics
footprint with assets that will immediately benefit from Labcorp's
scale and expertise," said Mark
Schroeder, Executive Vice President and President of
Diagnostics Laboratories and Chief Operations Officer of Labcorp.
"With the transaction complete, we are focused on integrating these
assets as we drive better health outcomes for patients and advance
our mission to improve health and improve lives."
"We believe the sale of these diagnostic assets is an important
step in our efforts to improve efficiencies and enhance
productivity of BioReference Health's operations and accelerate our
progress to profitability," stated Phillip
Frost, M.D., Chairman and Chief Executive Officer of OPKO.
"Furthermore, it enables us to focus on our core clinical
diagnostics in New York and
New Jersey and higher value
testing segments, including our national oncology and urology
franchises, which comprise approximately $400 million in annual revenue. We look forward
to continuing to build our best-in-class portfolio to better serve
our clients and patients."
Lazard served as Labcorp's financial advisor, and
Hogan Lovells, Kilpatrick Townsend and Parker
Poe served as legal counsel.
Piper Sandler &
Co. served as OPKO's financial advisor, and Greenberg
Traurig served as legal counsel.
About Labcorp
Labcorp (NYSE: LH) is a global leader of
innovative and comprehensive laboratory services that helps
doctors, hospitals, pharmaceutical companies, researchers and
patients make clear and confident decisions. We provide insights
and advance science to improve health and improve lives through our
unparalleled diagnostics and drug development laboratory
capabilities. The company's more than 67,000 employees serve
clients in approximately 100 countries, provided support for 84% of
the new drugs and therapeutic products approved in 2023 by the FDA
and performed more than 600 million tests for patients around the
world. Learn more about us at www.Labcorp.com.
About OPKO
OPKO Health, Inc. (Nasdaq: OPK) is a
multinational biopharmaceutical and diagnostics company that seeks
to establish industry-leading positions in large, rapidly growing
markets by leveraging its discovery, development, and
commercialization expertise and novel and proprietary technologies.
For more information, visit www.opko.com.
Cautionary Statement Regarding Forward-Looking
Statements
This press release contains forward-looking
statements, including but not limited to statements with respect to
the (a) the anticipated impact of the transaction including
expanding patient access to laboratory services, scientific
expertise and testing capabilities, (b) integration plans and
(c) the anticipated benefits of the transaction for Labcorp and
OPKO. Each of the forward-looking statements is subject to change
based on various important factors, many of which are beyond each
party's control, including without limitation (i) the successful
integration of the transaction, (ii) potential difficulties with
employee retention; (iii) the trading price of each of Labcorp and
OPKO's stock, competitive actions and other unforeseen changes and
general uncertainties in the marketplace; (iv) changes in
government regulations; (v) customer purchasing decisions,
including changes in payer regulations or policies; (vi) other
adverse actions of governmental and third-party payers; (vii)
changes in testing guidelines or recommendations; (viii) federal,
state, and local government responses to the COVID-19 pandemic and
the volume of COVID-19 Testing performed; (ix) the impact of global
geopolitical events; (x) the effect of public opinion on each
party's reputation; (xi) adverse results in material litigation
matters, if applicable; (xii) the impact of changes in tax laws and
regulations; (xiii) failure to maintain or develop customer
relationships; (xiv) failure in information technology, systems or
data security; (xv) personnel costs; (xvi) inflation, and (xvii)
increased competition.. These factors, in some cases, have affected
and in the future (together with other factors) could affect each
of Labcorp's and OPKO's ability to implement their respective
business strategies, and actual results could differ materially
from those suggested by these forward-looking statements. As a
result, readers are cautioned not to place undue reliance on any of
the forward-looking statements.
Each of Labcorp and OPKO has no obligation to provide any
updates to these forward-looking statements even if its
expectations change. All forward-looking statements are expressly
qualified in their entirety by this cautionary statement. Further
information on potential factors, risks and uncertainties that
could affect operating and financial results is included in the
most recent Annual Report on Form 10-K and subsequent quarterly
reports on Form 10-Q, including in each case under the heading RISK
FACTORS, and in other filings with the SEC by each of Labcorp
and OPKO. The information in this press release should be read in
conjunction with a review of each of Labcorp's and OPKO's filings
with the SEC, including the information in each of Labcorp's
and OPKO's most recent Annual Report on Form 10-K, and subsequent
quarterly reports on Form 10-Q, under the heading "MANAGEMENT'S
DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS".
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SOURCE Labcorp Holdings Inc