Labcorp has reached an agreement to acquire BioReference Health's oncology diagnostic testing assets for up to $225 million upon closure of the transaction.
The deal is expected to close in the second half of 2025, pending regulatory approval, the companies said Tuesday in a news release. The independent laboratory company previously acquired select clinical, reproductive and women's health diagnostic assets from BioReference in September for more than $237 million.
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Labcorp and BioReference did not immediately respond to a request for comment.
The purchase price for the latest transaction includes $192.5 million payable at closing and up to $32.5 million in an earn-out based on performance, according to the news release.
The deal will allow BioReference, a subsidiary of biopharmaceutical and diagnostics company OPKO Health, to focus its efforts on other, more lucrative sectors of clinical testing, specifically urology diagnostics, in the New York and New Jersey markets, Dr. Phillip Frost, chair and CEO of OPKO, said in the release.
Health systems and other healthcare companies have become increasingly interested in selling lab assets in order to focus spending on other services. As a result, Labcorp and other independent lab companies including Quest Diagnostics have been on an acquisition spree.
Last year, Labcorp completed multiple acquisitions involving lab assets with health systems such as Johnson City, Tennessee-headquartered Ballad Health, Springfield, Massachusetts-based Baystate Health, Renton, Washington-based Providence and Naples, Florida-based NCH Healthcare System.
