OPKO Health to buy Bio-Reference in $1.47 billion deal

Friday, June 05, 2015

OPKO Health Inc agreed to buy clinical laboratory operator Bio-Reference Laboratories Inc in a stock deal valued at $1.47 billion to bolster its diagnostics business.

OPKO offered 2.75 of its shares for each share of Bio-Reference, or $52.58 based on OPKO's Wednesday close, the companies said in a statement.

The offer represents a premium of about 60 percent to Bio-Reference's Wednesday close.

Bio-Reference's shares jumped to a record high of $46.74 in early trading on Thursday, before paring some gains to trade at $44.69.

Shares of OPKO Health, which has diagnostics and drugs making businesses, fell 6.5 percent to $17.77.

Delaware-based OPKO said it plans to market its prostate cancer blood test through Bio-Reference's sales force and license or sell genetic and gene sequencing data collected by the company.

J.P. Morgan is the financial adviser to OPKO Health, while Greenberg Traurig PA is the legal adviser.

Allen & Company LLC acted as financial adviser to Bio-Reference, while Davis Polk & Wardwell LLP was its legal adviser.

 

reuters.com