Labcorp adds testing services expected to bring about $250 million in first-year sales, but pays $722 million in cash and still needs approval. The added reach and expected sales make the deal favorable.
The added sites and specialized tests could help Labcorp reach more patients and bring in sales. The first-year sales estimate gives a clear business reason for the purchase. The cash payment is a large commitment, and the deal still needs approval. Expected sales and a wider testing reach make the opportunity favorable for Labcorp.
OPKO gives up its testing businesses, but receives $722 million at closing and may receive up to $150 million more. The sale frees resources for its biopharmaceutical work, making the shift favorable.
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