Labcorp, the clinical laboratory network from Burlington, North Carolina, is buying the lab division of Farmingdale-based Enzo Biochem, Inc., according to an announcement released on Thursday.
The sale of Enzo Clinical Labs is part of a restructuring plan that will increase shareholder value in the Long Island healthcare company.
“Completion of the sale will position Enzo to assess and execute on further actions to increase shareholder value and advance our global leadership within the life sciences sector,” said Hamid Erfanian, CEO of Enzo Biochem.
Erfanian was elected by the company’s board last year in a strategic plan to boost the company's value. Activists joined the board of directors in 2022 to help administer the company’s turnaround. The sale of Enzo Clinical Labs is part of that plan.
The company’s remaining operating segment, Enzo Life Sciences, supplies a complete portfolio of products and services that are critical and extensively used in drug discovery, development and translational research applications. Enzo Life Sciences’ products including antibodies, genomic probes, assays, biochemicals, and proteins are sold globally to the life sciences market.
Enzo is selling the division for roughly $146 million in cash, according to a filing with the US Securities and Exchange Commission.
Completion of the sale of Enzo Clinical Labs is contingent upon approval by Enzo’s shareholders and other customary closing conditions for transactions of this type.
On Thursday, after the announcement of the transaction, Enzo Biochem’s stock surged almost 80%. On Friday, as of the writing of this article, the stock more than doubled in price again from $1.06 at opening to $2.25 by midday. The stock is still down over 30% year-over-year from a high of over $3 per share in 2022.