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OPKO Health to Sell Select BioReference Assets to Labcorp for $722M
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Key Takeaways
OPK agrees to sell select BioReference assets to Labcorp for $722M in cash, plus a potential $150M earnout.
The deal includes the 4Kscore Test, specialty testing operations and more than 80 patient service centers.
OPKO Health aims to focus on biopharma, while Labcorp expects $250M in first-year revenue from the deal.
OPKO Health (OPK - Free Report) recently announced an agreement to sell select assets of its wholly owned subsidiary, BioReference Health, to Labcorp Holdings Inc. (LH - Free Report) for $722 million in cash at closing, subject to adjustments. As part of the deal, OPK will also sell BioReference's proprietary 4Kscore Test, with the agreement including an earnout of up to $150 million tied to revenues generated by the test.
The 4Kscore Test is an FDA-approved blood test that assesses the likelihood of aggressive prostate cancer before a biopsy decision.
Per management, the deal will allow OPKO Health to concentrate resources on its biopharmaceutical business. The company sees Labcorp’s national scale as an opportunity to expand access to BioReference’s 4Kscore Test and describes the transaction as an important catalyst for unlocking further value for shareholders.
OPK Stock Trend Following the News
Following the announcement, OPK stock rose 17.5% at yesterday’s close. Year to date, the stock has gained 27.8% against the industry’s 2.3% decline. However, the S&P 500 has risen 12.9% in the same timeframe.
The divestiture could help OPKO Health simplify its business structure and direct greater attention and resources toward its biopharmaceutical portfolio. The upfront cash proceeds may provide financial flexibility to support strategic priorities, while the additional earnout offers potential upside if 4Kscore Test revenues meet the transaction’s terms. By transferring selected diagnostic assets to a larger laboratory operator, OPK could reduce the operational demands associated with these businesses and focus on advancing its pharmaceutical opportunities.
OPK currently has a market capitalization of $1.02 billion.
Image Source: Zacks Investment Research
More on the News
OPKO Health’s BioReference has built a longstanding presence in laboratory diagnostics, particularly in New York and New Jersey, with specialty expertise in oncology, women’s health and urology. The business serves correctional institutions nationwide and remains the exclusive national commercial provider of the 4Kscore Test.
Through the transaction, OPK will transfer BioReference’s clinical and women’s health testing businesses, urology and corrections testing operations and certain other operational assets to Labcorp Holdings. The transaction also includes more than 80 additional patient service centers and the 4Kscore Test. Labcorp forecasts the acquired business to generate about $250 million in revenues during the first year after closing, based on its current post-closing estimates.
Bryan Vaughn, executive vice president and president of diagnostics at Labcorp, stated that the deal will strengthen the company’s ability to provide affordable, high-quality specialized diagnostic services to more patients and healthcare providers. Expanding its clinical, women’s health, urology and corrections testing capabilities, while increasing access to the 4Kscore Test, will help physicians make better-informed decisions, enhance patient care and improve access to essential laboratory services.
Both companies will continue operating independently until closing, with no changes to existing services or operations.
Industry Prospects Favoring the Market
According to Grand View Research, the global clinical laboratory services market is projected to reach $229.9 billion in 2026 and is estimated to witness a CAGR of 4.3% from 2026 to 2035.
Factors like the increasing burden of chronic disease prevalence, consequent demand for early diagnostic tests, rapid advances in data management and sample preparation due to growing volumes of testing samples are driving market growth.
Other News
In August, OPKO Health expanded its financing relationship with HealthCare Royalty, a KKR business, through the issuance of $125 million in additional senior secured notes backed by its royalty interests from the mazdutide license agreement with Eli Lilly. The notes mature in 2044, with total payments capped at 1.5 times the funded amount, allowing OPK to access non-dilutive capital while retaining long-term participation in mazdutide royalty growth in China.
Globus Medical reported a second-quarter 2026 adjusted EPS of $1.34, which surpassed the Zacks Consensus Estimate by 19.6%. Revenues of $789.6 million beat the Zacks Consensus Estimate by 0.4%.
GMED has an estimated long-term earnings growth rate of 12.4%. The company’s earnings beat estimates in each of the trailing four quarters, the average surprise being 27.9%.
Merit Medical Systems reported second-quarter 2026 adjusted EPS of $1.19, which beat the Zacks Consensus Estimate by 23.9%. Revenues of $418.8 million surpassed the Zacks Consensus Estimate by 3.5%.
MMSI has an estimated long-term earnings growth rate of 10.4%. MMSI’s earnings surpassed estimates in the trailing four quarters, the average surprise being 14.1%.
View the Zacks #1 Rank List
Image: Bigstock
OPKO Health to Sell Select BioReference Assets to Labcorp for $722M
Key Takeaways
OPKO Health (OPK - Free Report) recently announced an agreement to sell select assets of its wholly owned subsidiary, BioReference Health, to Labcorp Holdings Inc. (LH - Free Report) for $722 million in cash at closing, subject to adjustments. As part of the deal, OPK will also sell BioReference's proprietary 4Kscore Test, with the agreement including an earnout of up to $150 million tied to revenues generated by the test.
The 4Kscore Test is an FDA-approved blood test that assesses the likelihood of aggressive prostate cancer before a biopsy decision.
Per management, the deal will allow OPKO Health to concentrate resources on its biopharmaceutical business. The company sees Labcorp’s national scale as an opportunity to expand access to BioReference’s 4Kscore Test and describes the transaction as an important catalyst for unlocking further value for shareholders.
OPK Stock Trend Following the News
Following the announcement, OPK stock rose 17.5% at yesterday’s close. Year to date, the stock has gained 27.8% against the industry’s 2.3% decline. However, the S&P 500 has risen 12.9% in the same timeframe.
The divestiture could help OPKO Health simplify its business structure and direct greater attention and resources toward its biopharmaceutical portfolio. The upfront cash proceeds may provide financial flexibility to support strategic priorities, while the additional earnout offers potential upside if 4Kscore Test revenues meet the transaction’s terms. By transferring selected diagnostic assets to a larger laboratory operator, OPK could reduce the operational demands associated with these businesses and focus on advancing its pharmaceutical opportunities.
OPK currently has a market capitalization of $1.02 billion.
Image Source: Zacks Investment Research
More on the News
OPKO Health’s BioReference has built a longstanding presence in laboratory diagnostics, particularly in New York and New Jersey, with specialty expertise in oncology, women’s health and urology. The business serves correctional institutions nationwide and remains the exclusive national commercial provider of the 4Kscore Test.
Through the transaction, OPK will transfer BioReference’s clinical and women’s health testing businesses, urology and corrections testing operations and certain other operational assets to Labcorp Holdings. The transaction also includes more than 80 additional patient service centers and the 4Kscore Test. Labcorp forecasts the acquired business to generate about $250 million in revenues during the first year after closing, based on its current post-closing estimates.
Bryan Vaughn, executive vice president and president of diagnostics at Labcorp, stated that the deal will strengthen the company’s ability to provide affordable, high-quality specialized diagnostic services to more patients and healthcare providers. Expanding its clinical, women’s health, urology and corrections testing capabilities, while increasing access to the 4Kscore Test, will help physicians make better-informed decisions, enhance patient care and improve access to essential laboratory services.
Both companies will continue operating independently until closing, with no changes to existing services or operations.
Industry Prospects Favoring the Market
According to Grand View Research, the global clinical laboratory services market is projected to reach $229.9 billion in 2026 and is estimated to witness a CAGR of 4.3% from 2026 to 2035.
Factors like the increasing burden of chronic disease prevalence, consequent demand for early diagnostic tests, rapid advances in data management and sample preparation due to growing volumes of testing samples are driving market growth.
Other News
In August, OPKO Health expanded its financing relationship with HealthCare Royalty, a KKR business, through the issuance of $125 million in additional senior secured notes backed by its royalty interests from the mazdutide license agreement with Eli Lilly. The notes mature in 2044, with total payments capped at 1.5 times the funded amount, allowing OPK to access non-dilutive capital while retaining long-term participation in mazdutide royalty growth in China.
OPKO Health, Inc. Price
OPKO Health, Inc. price | OPKO Health, Inc. Quote
OPK’s Zacks Rank & Other Key Picks
Currently, OPKO Health flaunts a Zacks Rank #1 (Strong Buy).
Some other top-ranked stocks from the broader medical space are Globus Medical (GMED - Free Report) and Merit Medical Systems (MMSI - Free Report) , each carrying a Zacks Rank #2 (Buy) at present.You can see the complete list of today’s Zacks #1 Rank stocks here.
Globus Medical reported a second-quarter 2026 adjusted EPS of $1.34, which surpassed the Zacks Consensus Estimate by 19.6%. Revenues of $789.6 million beat the Zacks Consensus Estimate by 0.4%.
GMED has an estimated long-term earnings growth rate of 12.4%. The company’s earnings beat estimates in each of the trailing four quarters, the average surprise being 27.9%.
Merit Medical Systems reported second-quarter 2026 adjusted EPS of $1.19, which beat the Zacks Consensus Estimate by 23.9%. Revenues of $418.8 million surpassed the Zacks Consensus Estimate by 3.5%.
MMSI has an estimated long-term earnings growth rate of 10.4%. MMSI’s earnings surpassed estimates in the trailing four quarters, the average surprise being 14.1%.