Opko Health, a multinational biopharmaceutical and diagnostics company, has signed a merger agreement to acquire Bio-Reference Laboratories, a Warwick, R.I.-based full service diagnostic laboratory. Bio-Reference Laboratories common stock holders will receive 2.75 shares of Opko common stock for each share of Bio-Reference common stock. Based on a closing price of $19.12 per share of Opko common stock on June 3, the transaction is valued at approximately $1.47 billion, or $52.58 per share of Bio-Reference common stock.
The companies expect the transaction to be completed during the second half of 2015. The agreement has been approved by the boards of directors of both companies. 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 aggressive 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 seamlessly 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 additional distribution capability to Opko’s diagnostic services. Bio-Reference Laboratories is a full service clinical laboratory that can provide key areas of opportunity for Opko’s services. Moreover, the seasoned management team at Bio-Reference Laboratories will bring valuable market intelligence to the combined operations.
