The value of the deal has fallen 37% to $923 million due to the fall in Opko's share price.
Opko Health Inc. (NYSE: OPK; TASE: OPK) has completed the acquisition of Bio-Reference Laboratories, Inc. (Nasdaq: BRLI). Shareholders of Bio-Reference will receive 2.75 shares of Opko common stock for each share of Bio-Reference common stock. When Opko reported on the acquisition its share price was $19.10 but it has since fallen 37%, mainly due to disappointing second quarter results so that the value of the acquisition has fallen from $1.47 million to $923 million.
Bio-Reference is the third largest laboratories in the US.
Opko chairman and CEO, and former Teva Pharmaceutical Industries Ltd. (NYSE: TEVA; TASE: TEVA) chairman Dr. Phillip Frost said, "The acquisition of Bio-Reference is important for Opko. For almost 30 years Dr. Grodman and his team at Bio-Reference Laboratories have produced a record of innovation and organic growth while building cutting edge diagnostic franchises in Women’s Health, Cancer, and Genetics. Bio-Reference’s national infrastructure, reach and extensive payer network will be invaluable to the adoption of OPKO’s 4Kscore® test by physicians and patients across the country. However, even more strategic is the company’s leadership position around the world in diagnostic sequencing services for rare disorders through its GeneDx business unit and its emerging cost effective tumor sequencing services through GenPath Oncology. These assets will be of great value in the process of drug discovery and development."
Published by Globes [online], Israel business news - www.globes-online.com - on August 23, 2015
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Phillip Frost