OPKO Health to Acquire Bio Reference Labs for $1.47 Bn
OPKO Health, a biopharmaceutical and diagnostics company, has agreed to acquire Bio-Reference Laboratories, a full service clinical laboratory with technology and expertise in genomics and genetic sequencing. Under the agreement, which has been approved by the boards of directors of both companies, holders of BRLI common stock will receive 2.75 shares of OPKO common stock for each share of BRLI common stock. Based on a closing price of $19.12 per share of OPKO common stock on June 3, 2015, the transaction is valued at approximately $1.47 billion, or $52.58 per share of BRLI common stock. The companies expect the transaction to be completed during the second half of 2015. Closing of the transaction is subject to approval of Bio-Reference Laboratories’ shareholders and other customary conditions.
OPKO intends to leverage the national marketing, sales, and distribution resources of Bio-Reference Laboratories to enhance sales of its 4Kscore test, a blood test that provides a patient’s specific personalized risk score for prostate cancer as well as other OPKO diagnostic products under development.
Through GeneDx, Bio-Reference Laboratories’ genetic sequencing laboratory, and GenPath Diagnostics, its oncology and women’s health business units, Bio-Reference Laboratories has accumulated a vast array of genetic and genomics data that OPKO will make available to industry and academic scientists to enhance their drug discovery and clinical trial programs.
OPKO intends to allow laboratory operations to continue but with enhancement from OPKO’s pipeline of diagnostic products. The current diagnostic services of OPKO will be merged with the Bio-Reference Laboratories operations throughout the country. Bio-Reference Laboratories’ national presence will add distribution capability to OPKO’s diagnostic services.
Source: OPKO Health