Labcorp has announced its acquisition of BioReference Health’s oncology testing business for $192.5 million. This transaction, which marks Labcorp’s second major acquisition of BioReference assets in less than a year, underscores the growing importance of oncology testing services in the marketplace.

The deal, announced recently, includes a performance-based component where an additional $32.5 million is contingent upon revenue targets being met for specific customer accounts. This acquisition encompasses BioReference’s comprehensive oncology and oncology-related clinical testing services available across the United States. These services are targeted at a diverse clientele, including physicians, geneticists, hospitals, clinics, and correctional facilities.

Notably, certain segments of BioReference’s operations are excluded from this transaction. Specifically, the firm’s urology diagnostics business, along with its core clinical testing services in New York and New Jersey, remain outside the scope of the deal. This strategic move allows Labcorp to focus on enhancing its oncology testing capabilities, an area that continues to show promise for growth within the healthcare sector.

BioReference operates as a subsidiary of Opko Health, a Miami-based company that has been facing financial challenges, including an $86.7 million loss reported for 2024. In response to declining revenues, Opko has been actively streamlining its operations to better position itself for future profitability. This restructuring includes cutting costs and divesting non-core assets, such as those related to its oncology testing business, to strengthen its financial foundation.

This acquisition follows a previous transaction in March, where Opko sold its clinical diagnostics and reproductive women’s health business to Labcorp for $237.5 million—a deal that accounted for roughly $100 million in annual revenue. With this latest acquisition, the oncology testing business, which generates approximately $85 million to $100 million in annual revenue, adds significant value to Labcorp’s expanding portfolio.

Phillip Frost, Chairman and CEO of Opko Health, emphasized the importance of this transaction in a prepared statement, highlighting that it symbolizes a crucial step toward achieving profitability by further refining BioReference Health’s operational focus.

For Labcorp, the acquisition aligns with its broader growth strategy, which included a remarkable $839 million in merger and acquisition activities throughout 2024. The company’s commitment to expanding its capabilities was illustrated by its recent acquisition of BioReference’s clinical and reproductive women’s health business, which was valued at $237.5 million and represented Labcorp’s second-largest acquisition of that year, following a significant purchase of certain genetic testing assets from Invitae amid that company’s bankruptcy proceedings.

This latest agreement remains subject to customary closing conditions and required state regulatory approvals, with expectations for the deal to close in the latter half of 2025.