Opko Agrees to Sell Remaining Diagnostics to Labcorp

The Tip Desk · November 11, 2026 · 4 min read

The biopharmaceutical company struck a $722 million cash deal for BioReference and reported $65.4 million of third-quarter continuing-operations revenue.

OPKO Health, Inc. (OPK), a multinational biopharmaceutical company, entered an agreement with Labcorp to sell substantially all remaining BioReference diagnostic operations for $722 million in cash at closing, subject to revenue-based adjustments, plus up to $150 million in additional cash over up to ten years tied to Labcorp sales of the 4Kscore test. The transaction remains subject to regulatory approvals and customary closing conditions.

The board approved a plan to sell those operations on September 30, 2026. OPKO classified the related disposal group as held for sale and recast BioReference as discontinued operations for all periods shown. Continuing operations are now reported through two segments, Global Products and Innovative Biotech, with unallocated corporate costs presented separately.

Continuing-operations revenue in the third quarter ended September 30, 2026 increased 16% to $65.4 million from $56.4 million a year earlier. The company said the increase resulted principally from higher royalty revenue from Lilly, increased sales of Rayaldee and growth in international operations. Operating loss from continuing operations decreased to $31.4 million from $33.6 million in the comparable 2025 period. Net loss from continuing operations was $35.5 million, or $0.05 a share, compared with $33.0 million, or $0.04 a share, a year earlier.

Global Products revenue rose to $48.4 million from $39.4 million a year earlier. Product revenue was $41.8 million versus $37.7 million. Rayaldee revenue increased to $8.6 million from $7.5 million, which the company said reflected favorable gross-to-net adjustments from changes to Medicare coverage. International operations revenue increased approximately $3.0 million, including an approximately $0.7 million favorable foreign-currency impact from appreciation of the Chilean peso and Mexican peso; the company cited stronger performance in certain international markets including animal health and higher EirGen revenue from increased sales volumes and favorable product mix. Licensing, collaboration and other revenue in the segment increased to $6.6 million from $1.8 million, primarily from $5.8 million of Lilly royalty revenue. Segment operating income was $6.0 million versus an operating loss of $1.2 million.

Innovative Biotech licensing, collaboration and other revenue was $17.0 million in both the third quarter of 2026 and 2025. Lower BARDA revenue of $7.5 million versus $8.2 million was substantially offset by $0.8 million of Regeneron collaboration revenue, while Pfizer royalty revenue was relatively consistent. Research and development expense increased to $30.4 million from $26.3 million, primarily reflecting increased investment in ModeX development programs. Segment operating loss widened to $26.8 million from $22.5 million. Unallocated corporate operating loss was $10.6 million versus $9.9 million a year earlier.

Discontinued BioReference generated revenue of $71.8 million versus $95.2 million a year earlier. Loss from discontinued operations, net of tax, was $18.0 million versus income of $54.6 million, the 2025 result having included a $101.6 million gain on the sale of BioReference’s oncology diagnostics business and related clinical testing services assets to Labcorp. Consolidated net loss was $53.5 million, or $0.07 a share, versus net income of $21.6 million, or $0.03 a share, a year earlier.

OPKO expanded its HealthCare Royalty relationship with an additional $125 million of senior secured royalty notes. The amended framework includes specified royalty payments receivable under the Lilly license related to mazdutide. Cash, cash equivalents and restricted cash were $403.2 million as of September 30, 2026. During the quarter the company received approximately $123.1 million of net proceeds from the additional royalty financing and approximately $19.8 million from the release of escrow funds related to the September 2025 oncology transaction. It repurchased 7,050,000 shares for approximately $10.6 million, leaving approximately $84.3 million available under the $200 million authorization. Current assets held for sale were $248.1 million versus $13.1 million at December 31, 2025. Senior secured royalty financing was $370.2 million versus $246.4 million at year-end 2025.

OPKO Biologics dosed the first participant in a Phase 1/2a trial of OPK-8801001, a long-acting human growth hormone receptor antagonist for acromegaly. ModeX completed enrollment in the BARDA-funded MDX2301 Phase 1 trial of a tetravalent bispecific antibody for SARS-CoV-2; early data are expected in late 2026 or early 2027. Enrollment continued in MDX2001, MDX2004 and MDX2003 Phase 1 studies. OPKO continued U.S. enrollment in the Phase 1/2a study of OPK-88006, a dual GLP-1/glucagon receptor agonist.

In light of the pending Labcorp transaction, OPKO withdrew previously issued guidance for services revenue and total costs and expenses, citing uncertainty about closing timing. It will continue to provide guidance for continuing operations, with fourth-quarter product revenue of $41.0 million to $46.0 million, IP and other revenue of $21.0 million to $27.0 million, and total revenue of $62.0 million to $72.0 million.