Labcorp LH recently entered into an agreement with OPKO Health, Inc. OPK, a multinational biopharmaceutical and diagnostics company, to acquire select assets of the latter’s wholly owned subsidiary, BioReference Health. This acquisition will strengthen Labcorp's position in the oncology industry, expanding its extensive portfolio of diagnostic tests in cancer care.
The purchase price for the transaction is up to $225 million, including $192.5 million payable at closing and up to $32.5 million in an earnout based on performance. The proposed acquisition meets Labcorp's strategic and financial criteria and is expected to be accretive to its earnings in the first year.
Labcorp will acquire OPKO’s BioReference Health's laboratory testing businesses focused on oncology and oncology-related clinical testing services across the United States. This transaction includes certain customer accounts and other operating assets. The assets that Labcorp will be acquiring currently generate approximately $85 million to $100 million in annual revenues.
The transaction is expected to provide patients, physicians and customers with greater access to Labcorp's comprehensive, high-quality laboratory services, scientific expertise and expanded testing capabilities. On closing of the transaction, BioReference Health's operations will include core clinical testing operations in the New York and New Jersey region and its 4Kscore franchise.
The transaction is subject to customary closing conditions and remaining applicable state regulatory approvals. The company expects to close the acquisition transaction in the second half of 2025.
Per the Grand View Research report, the global cancer diagnostics market size is expected to grow at a compound annual rate of 6.14% from 2025 to 2030. The growth of the cancer diagnostics market is attributed to the growing prevalence of cancer, technological advancements in diagnostics procedures and increasing initiatives to develop novel imaging solutions for providing more accurate and precise diagnosis.
Sridatri
In the previous month, the company’s Labcorp Plasma Complete, a circulating tumor DNA-based comprehensive genomic profiling solution, became clinically available for patients with advanced solid tumors. This liquid biopsy test enables oncologists to perform comprehensive genomic profiling to inform personalized treatment decisions.
Also, the company announced the expansion of its laboratory in Raritan, NJ. The expansion adds 110,000 square feet of advanced laboratory space and a state-of-the-art warehouse and logistics hub, strengthening Labcorp’s position as a leader in diagnostic testing and healthcare innovation. With over 1,300 laboratory professionals working at the Raritan site, the laboratory processes specimens from more than 110,000 patients daily.
In the oncology space, Labcorp faces competition from some prominent MedTech players. These companies are also making notable developments within this category.
Illumina ILMN, one of the major competitors of Labcorp, is driving the revolution in cancer genomics through an expanding NGS oncology portfolio. In 2024, the FDA approved Illumina’s in vitro diagnostic TSO Comprehensive test and its first two companion diagnostic indications. The test interrogates more than 500 genes to profile a patient's solid tumor, identifying an immuno-oncology biomarker or clinically actionable biomarkers that enable targeted therapy options or clinical trial enrollment. Meanwhile, its market-leading TruSight Oncology assay, TSO 500, is witnessing increased utilization and broader adoption.
Another competitor of Labcorp is NeoGenomics, Inc. NEO, which recently announced the acquisition of Pathline, LLC. The acquisition strengthens NeoGenomics’ commercial presence in the Northeast United States, expanding its service capabilities and accelerating growth in molecular and hematology-oncology testing by establishing a local presence for the company. Additionally, NeoGenomics signed a multi-year exclusive strategic commercial collaboration with Adaptive Biotechnologies Corporation to advance MRD monitoring options for patients with select blood cancers.
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