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Labcorp Holdings Inc. (NYSE: LH) traded higher Thursday after the company agreed to acquire select assets of BioReference Health from OPKO Health Inc. (NASDAQ: OPK) in a deal worth up to $872 million.
OPKO Health shares surged nearly 8% following the announcement.
Under the agreement, Labcorp will pay $722 million in cash at closing, subject to adjustments based on the acquired business's revenue.
The deal also includes up to $150 million in additional payments tied to revenue from BioReference's 4Kscore Test.
Labcorp will acquire BioReference's clinical and women's health testing operations, urology and corrections testing businesses, and certain operational assets. The acquisition also includes more than 80 patient service centers.
A key part of the deal is the FDA-approved 4Kscore Test, a blood test that helps assess the likelihood of aggressive prostate cancer before a biopsy decision.
Labcorp expects the acquired operations to generate approximately $250 million in revenue during the first year after closing.
As of June 30, 2026, Labcorp held $141.8 million in cash and cash equivalents.
Labcorp Diagnostics President Bryan Vaughn said the acquisition would expand access to specialized testing and strengthen the company's clinical, women's health and urology services.
He added that Labcorp's national network would make advanced diagnostics, including the 4Kscore Test, available to more patients and health care providers.
For OPKO Health, the divestiture represents a strategic shift toward its core biopharmaceutical business.
Chairman and CEO Phillip Frost said the transaction would simplify operations, free up resources for biopharmaceutical development and help unlock shareholder value.
The companies expect Labcorp's national network to expand access to BioReference's diagnostic services.
The transaction remains subject to regulatory approvals and customary closing conditions.
Until the deal closes, Labcorp and OPKO Health will continue operating independently, with no changes to existing services.
Lazard is advising Labcorp, while Piper Sandler is serving as OPKO Health's exclusive financial adviser.
William Blair views Labcorp's purchase multiple of less than three times forward sales as reasonable. Analyst Jared Haase said the 4Kscore Test is a particularly attractive asset because of its established clinical value and potential for wider adoption through Labcorp's national network.
Price Action: Labcorp Holdings shares were up 1.79% at $323.01 and OPKO Health shares were up 17.88% at $1.61 at the time of publication on Thursday, according to market data.
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