The Enzo Biochem Inc (NYSE: ENZ) stock price soared 79.83% after agreeing with Labcorp to acquire the assets of Enzo’s Clinical Laboratory division. The two companies did not disclose the financial details of the transaction, promising to do at the shareholder meeting to approve the deal.
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Investors cheered the asset disposal by Enzo Biochem, which said it was part of its broader strategy to advance its “focused return” initiative to maximise shareholder value. The company took several steps last year as part of the new strategy.
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Enzo started restructuring its operations in 2022 to target business areas and industry segments with the most significant growth opportunities. After the disposal of Enzo Clinical Labs, the company will be left with its Enzo Life Sciences division.
Enzo Life Sciences supplies a complete portfolio of products and services that play a critical role in and are used extensively in drug discovery, development and within translational research applications. Its products include genetic probes, antibodies, biochemicals, assays and proteins, which are sold to a global clientele.
The deal’s completion hinges on its approval by Enzo’s shareholders and customary closing conditions.
Hamid Erfanian, Enzo Biochem’s CEO, said: “Completion of the sale will position Enzo to assess and execute further actions to increase shareholder value and advance our global leadership within the life sciences sector. We are very grateful to all our colleagues who have made Enzo Clinical Labs a trusted source for patient care. With proven expertise in clinical laboratory services and products, LabCorp is perfectly positioned to bring these operations to new levels of momentum and success.”
Bill Haas, Senior VP of Labcorp Diagnostic’s Northeast Division, said: “Enzo Clinical Labs is renowned for high-quality testing and expert customer focus, and we look forward to integrating these capabilities through a smooth and seamless transition of services while maintaining a presence on Long Island with testing and service teams. This investment bolsters our commitment to the New York Tristate healthcare communities, and we are confident that Enzo Clinical Labs patients and providers will have a combined experience that exceeds their laboratory needs.”
*This is not investment advice.
Enzo Biochem stock price.
The Enzo Biochem stock price soared 79.83% to trade at $2.14, from Thursday’s closing price of $1.19.
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