OPKO Health reported third quarter 2026 results that met earnings expectations but fell short on revenue as the company prepares for a major divestiture. The company signed a definitive agreement to sell substantially all remaining BioReference diagnostics operations to Labcorp for $722 million in cash, signaling a definitive strategic pivot toward its higher-margin biopharmaceutical portfolio and royalty streams.
Key Highlights
- Agreed to sell BioReference diagnostic operations to Labcorp for $722 million upfront with up to $150 million in potential earn-outs based on 4Kscore test sales.
- Total consolidated revenue of $137.2 million missed the analyst estimate of $182.5 million, largely due to the shrinking footprint of the diagnostics segment.
- Net loss of $0.07 per share matched consensus expectations for the quarter.
- Continuing operations revenue grew 16% year-over-year to $65.4 million, driven by higher royalty revenue from Eli Lilly and increased Rayaldee sales.
- Secured $125 million in additional senior secured royalty notes from HealthCare Royalty to bolster liquidity.