Nearly a year after Labcorp struck a deal for certain diagnostics assets from BioReference Health, the lab-testing giant is back to buy the firm’s cancer tests.
Labcorp is paying $192.5 million for the oncology testing business of BioReference, according to financial terms announced this past week. Another $32.5 million is tied to revenue targets for certain customer accounts. The acquisition spans BioReference’s oncology and oncology-related clinical testing services across the U.S. These services are marketed directly to physicians, geneticists, hospitals, clinics, correctional facilities, and other health facilities. Excluded from the deal are BioReference’s nationwide urology diagnostics services business as well as its core clinical testing services in New York and New Jersey.
BioReference is a subsidiary of Miami-based Opko Health. That company’s declining revenue led to an $86.7 million loss for 2024, according to its annual report. Opko has been streamlining its operations in an effort to boost the company’s bottom line. That strategy includes cutting costs at BioReference.
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Last March, Opko reached a $237.5 million deal to sell its clinical diagnostics and reproductive women’s health business to Labcorp. This business accounted for about $100 million in annual revenue. The oncology testing business now set to go to Labcorp generates about $85 million to $100 million in annual revenue, according to the companies.
“This transaction with Labcorp represents another important step for Opko Health to further streamline BioReference Health’s operations to achieve profitability,” Opko Chairman and CEO Phillip Frost said in a prepared statement.
Acquisitions are part of the growth strategy of Burlington, North Carolina-based Labcorp, which spent $839 million on M&A deals in 2024, according to its annual report. The purchase of BioReference’s clinical and reproductive women’s health business closed last September. It was Labcorp’s second largest acquisition in 2024, behind only the $240.8 million it paid for certain Invitae genetic testing assets auctioned off as part of that company’s bankruptcy process.
Labcorp’s acquisition of the BioReference oncology testing business is subject to customary closing conditions and applicable state regulatory approvals. The companies expect to close the deal in the second half of 2025.
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