Opko Health Sells BioReference Labs to LabCorp for $722 Million in Cash
Opko Health is selling its BioReference labs division to LabCorp for $722 million in cash plus $150 million in earn-outs, shifting its focus entirely to drug development.
Opko Health, led by former Teva chairman Philip Frost, has announced it is selling another division of its BioReference laboratories network to LabCorp for $722 million in cash, alongside an earn-out of up to $150 million tied to revenues from its proprietary 4KScore test. According to LabCorp projections, the acquired operations are expected to generate approximately $250 million in revenue during the first year following the transaction's completion.
Market Response and Financial Performance
Opko is traded on both the Tel Aviv Stock Exchange and the New York Stock Exchange. Following the announcement, its stock surged by about 20%, reflecting a market capitalization of approximately 3.1 billion NIS in Tel Aviv, after having dropped roughly 18% over the past year prior to the morning trade.
The transaction shifts the remaining major assets of BioReference to LabCorp, providing Opko with substantial cash reserves to refocus on its core pharmaceutical pipeline.
Strategic Shift Toward Drug Development
Opko initially acquired the laboratory network in 2015 for $1.47 million in stock. While the acquisition was initially viewed as struggling, it experienced a significant boom during the COVID-19 pandemic. Following previous asset sales to LabCorp in 2024 and 2025, this latest agreement transfers clinical testing, women's health, urology, and correctional facility laboratory services, along with 80 patient service centers and the 4KScore test rights.
Opko stated that it will now concentrate entirely on drug development. Its primary products include a long-acting growth hormone commercialized with Pfizer, a treatment for vitamin D deficiency in kidney disease patients, and numerous early-stage pipeline projects. In the second quarter of 2026, the company posted revenues of $163 million, marking a 4% increase, while its net loss narrowed to $8.4 million compared to $148 million in the same period last year.
