Opko Sells Lab Unit to LabCorp for $722 Million, Stock Surges
Translated & summarized from Globes by baba
Opko Health is selling a significant portion of its Bioreference laboratory network to LabCorp for $722 million in cash, with potential for an additional $150 million. The deal includes the 4KScore test and various diagnostic services, marking Opko's strategic shift towards drug development. The sale follows previous divestitures of Bioreference assets and comes as Opko's stock surged 20% on the news. The company aims to reinvest proceeds into its pharmaceutical pipeline.
The story in 5 lines · by baba
- Opko Health will sell its Bioreference lab assets to LabCorp for $722 million cash, plus potential $150 million.
- The sale includes the 4KScore prostate cancer test and various diagnostic services, with LabCorp projecting $250 million in annual revenue.
- Opko's stock price surged approximately 20% following the announcement of the deal.
- This transaction is part of Opko's strategic shift to focus on drug development, divesting its laboratory operations.
- The company reported a net loss of $8.4 million in Q2 2026, an improvement from the prior year's $148 million loss.
Biomedical investment firm Opko Health, led by former Teva Chairman Philip Frost, announced it is selling another part of its laboratory network, Bioreference, to LabCorp for $722 million in cash. The deal also includes potential additional earnings of $150 million tied to the performance of the 4KScore test, developed by Opko for assessing prostate cancer aggressiveness. LabCorp projects the acquired operations will generate approximately $250 million in revenue in the first year post-acquisition.
Opko, which trades on the Tel Aviv and New York stock exchanges, saw its stock price jump about 20% following the announcement. This surge comes after an 18% decline over the past year. The company, a diversified biomedical investment firm, originally purchased the Bioreference lab network in 2015 for $1.47 billion in Opko stock, aiming to advance the 4KScore test. The acquisition was initially considered a setback due to slow uptake of the test, but the lab network thrived during the COVID-19 pandemic by offering testing services.
This latest sale follows previous divestitures of Bioreference assets to LabCorp: $237 million in 2024 and approximately $192 million in 2025, with additional contingent amounts. The current transaction includes clinical diagnostics, women's health, urology, and correctional facility testing services, along with 80 service centers, and transfers rights to the 4KScore test to LabCorp.
Despite consistent operational activity, Bioreference has often recorded losses. However, the shift from a stock-based acquisition to a cash sale aligns with Opko's strategy to invest in new ventures. Opko stated its future focus will be on drug development, including its delayed-release growth hormone product (licensed to Pfizer), a vitamin D deficiency treatment for kidney patients, and other early-stage projects.
In the second quarter of 2026, Opko reported revenues of $163 million, a 4% increase primarily due to asset sales, despite a decline in Bioreference revenues. The company posted a net loss of $8.4 million, a significant improvement from a $148 million loss in the same period last year.
