NEW YORK (TheStreet) -- Shares of Opko Health (OPK) - Get OPKO Health, Inc. Report were trading in the red, down 1.48% to $16.01 on heavy volume in midday trading Friday, adding to its losses from the prior session following its announcement that it will acquire Bio-Reference Laboratories (BRLI) .
As part of the all-stock deal, Bio-Reference shareholders will get 2.75 shares of pharmaceutical company Opko for every share they own.
The two companies expect the roughly $1.47 billion deal to be completed during the second half of 2015.
Opko said it will use the marketing, sales and distribution resources of Bio-Reference Labs to push sales.
J.P. Morgan acted as the financial advisor to Opko, while Allen & Company LLC was the financial advisor to Bio-Reference Labs.
About 7.15 million shares of Opko Health have exchanged hands as of 12:11 p.m. ET today, compared to its average trading volume of about 4.1 million shares a day.
Miami-based Opko Health is a multi-national biopharmaceutical and diagnostics company.
The company is involved in developing a range of solutions to diagnose, treat and prevent various conditions, including point-of-care tests, laboratory developed tests, molecular diagnostics tests, and proprietary pharmaceuticals and vaccines.
Separately, TheStreet Ratings team rates OPKO HEALTH INC as a Hold with a ratings score of C-. TheStreet Ratings Team has this to say about their recommendation:
"We rate OPKO HEALTH INC (OPK) a HOLD. The primary factors that have impacted our rating are mixed, some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures and solid stock price performance. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and feeble growth in the company's earnings per share."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The revenue growth came in higher than the industry average of 21.5%. Since the same quarter one year prior, revenues rose by 35.1%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- OPK's debt-to-equity ratio is very low at 0.15 and is currently below that of the industry average, implying that there has been very successful management of debt levels. To add to this, OPK has a quick ratio of 2.02, which demonstrates the ability of the company to cover short-term liquidity needs.
- The gross profit margin for OPKO HEALTH INC is rather high; currently it is at 68.55%. It has increased significantly from the same period last year. Regardless of the strong results of the gross profit margin, the net profit margin of -389.28% is in-line with the industry average.
- The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Biotechnology industry. The net income has significantly decreased by 162.9% when compared to the same quarter one year ago, falling from -$44.55 million to -$117.11 million.
- Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Biotechnology industry and the overall market, OPKO HEALTH INC's return on equity significantly trails that of both the industry average and the S&P 500.
- You can view the full analysis from the report here: OPK Ratings Report