News

DNA testing company Orchid to be acquired by LabCorp for $85M

Diagnostic technologies and genomic testing company LabCorp will buy DNA testing services company Orchid Cellmark in a deal valued at $85.4 million. LabCorp (NYSE:LH) said that the definitive agreement calls for the Burlington, North Carolina-based company to acquire all of the outstanding shares of Orchid (NASDAQ:ORCH) for $2.80 per share. That’s 39 percent more than […]

Diagnostic technologies and genomic testing company LabCorp will buy DNA testing services company Orchid Cellmark in a deal valued at $85.4 million.

LabCorp (NYSE:LH) said that the definitive agreement calls for the Burlington, North Carolina-based company to acquire all of the outstanding shares of Orchid (NASDAQ:ORCH) for $2.80 per share. That’s 39 percent more than Orchid’s April 5 closing price of $2.01.

sponsored content

A Deep-dive Into Specialty Pharma

A specialty drug is a class of prescription medications used to treat complex, chronic or rare medical conditions. Although this classification was originally intended to define the treatment of rare, also termed “orphan” diseases, affecting fewer than 200,000 people in the US, more recently, specialty drugs have emerged as the cornerstone of treatment for chronic and complex diseases such as cancer, autoimmune conditions, diabetes, hepatitis C, and HIV/AIDS.

LabCorp maintains a network of more than 1,500 labs spanning the country. The company reported more than $5 billion in 2010 revenue. LabCorp said that the Orchid acquisition strengthens the company’s presence in identity testing in the United States while also giving it a presence in the United Kingdom market, where Orchid also operates. Princeton, New Jersey-based Orchid reported $63.7 million in 2010 revenue.

The Orchid board of directors has already approved the agreement and merger plan determining that the offer and the merger are “advisable, fair to, and in the best interests of Orchid Cellmark and its stockholders.”

Orchid is the second acquisition for LabCorp in the last four months. The company in December completed its $925.2 million acquisition of Genzyme Genetics, a business unit of Genzyme (NASDAQ:GENZ). LabCorp said it made that deal to advance its personalized medicine strategy.