Opko Sells More Lab Assets 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 is expected to boost Opko's stock, which surged 25% on the news. This sale is part of Opko's strategic shift towards focusing on drug development, following previous divestments of Bioreference assets. The company reported a net loss of $8.4 million in its latest quarterly results.
The story in 5 lines · by baba
- Opko Health is selling additional Bioreference lab assets to LabCorp for $722 million cash plus potential future earnings.
- The deal includes the 4KScore test, with LabCorp expecting the acquired operations to generate $250 million annually.
- Opko's stock price rose approximately 25% following the announcement of the sale.
- The sale is a strategic move for Opko to focus on drug development, divesting from laboratory testing services.
- Opko reported a net loss of $8.4 million in its second quarter of 2026, a significant improvement from the prior year.
Biomedical investment firm Opko Health, led by former Teva Chairman Philip Frost, announced it is selling additional assets from its Bioreference laboratory network to LabCorp for $722 million in cash. The deal also includes potential for an additional $150 million based on future sales of the company's 4KScore test for prostate cancer. LabCorp anticipates the acquired operations will generate approximately $250 million in revenue in the first year post-acquisition.
Opko, which trades on both the Tel Aviv and New York stock exchanges, saw its stock price jump by about 25% following the announcement, reaching a valuation of approximately 3.38 billion shekels in Tel Aviv. This surge follows an 18% decline in the stock over the past year.
The company originally acquired the Bioreference laboratory network in 2015 for $1.47 billion in Opko stock, aiming to advance its 4KScore test. While the test's initial revenue did not meet expectations, the lab network experienced growth during the COVID-19 pandemic due to its testing services.
This latest transaction follows previous sales of Bioreference assets to LabCorp in 2024 for $237 million and in 2025 for approximately $192 million plus contingent payments. The current sale includes most of the remaining operations, encompassing clinical diagnostics, women's health, urology, and correctional facility testing services, along with 80 service centers. LabCorp will also acquire the rights to the 4KScore test itself.
Opko stated that this sale aligns with its strategy to focus on drug development. The company's main products include a long-acting growth hormone licensed to Pfizer, a treatment for vitamin D deficiency in kidney patients, and other early-stage development projects. In the second quarter of 2026, Opko reported $163 million in revenue, a 4% increase driven by asset sales, despite a decline in Bioreference revenues. The company reported a net loss of $8.4 million for the quarter, a significant reduction from $148 million in the same period last year.
Sharon Ben-Or, Opko's CFO in Israel, described the deal as a significant step in executing Opko's strategy to concentrate on core drug development activities within its biopharmaceutical division. He added that the sale demonstrates Opko's ability to realize value from its assets and leverage them for increased shareholder value.
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