LabCorp to acquire NMR-focused, personalized diagnostic company LipoScience for $85m

28-Sep-2014 - Last updated on 05-Dec-2023 at 11:48 GMT

CRO LabCorp has entered a definitive agreement to acquire LipoScience for $5.25 per share, or about $85.3m (€67.2m).

The Board of Directors of personalized diagnostic company LipoScience has unanimously approved the agreement and recommended approval of the transaction by LipoScience’s stockholders. LipoScience stock closed on Friday at $5.19, which means LabCorp is paying a six cent premium on the company.

LipoScience’s focus is on developing diagnostic tests based on nuclear magnetic resonance (NMR) technology to improve the quality of patient care in cardiovascular, metabolic and other diseases. The company’s first proprietary test is an FDA-cleared blood test that directly quantifies LDL particle number (LDL-P) and provides physicians and their patients with actionable information to personalize management of heart disease.

The company also has an FDA-approved Vantera Clinical Analyzer, which uses NMR technology to identify and quantify concentrations of lipoproteins and small molecule metabolites.

David King, chairman and CEO of LabCorp said: “LipoScience’s NMR LipoProfile test will enhance our innovative clinical decision support programs, advancing the Fifth Pillar of our strategy as we provide ever-broader, differentiated knowledge services to physicians and patients. Furthermore, LipoScience’s novel application of NMR technology furthers the Fourth Pillar of our strategy by continuing our leadership in scientific innovation.”

“In addition to LipoScience’s strategic fit, the transaction is expected to be accretive to LabCorp’s earnings in year one, and to earn its cost of capital by year three,” King said.

Howard Doran, President and CEO of LipoScience, added: “The NMR LipoProfiletest is the only FDA-cleared test for measuring LDL-particle number (LDL-P) that offers actionable information for physicians and patients in the management of cardiovascular disease.”

This is the latest acquisition for LabCorp, which back in 2011 acquired DNA testing services firm Orchid Cellmark.

The transaction is expected to close in the fourth quarter of 2014. Canaccord Genuity Inc. served as financial advisor and provided a fairness opinion to LipoScience in connection with the transaction.