LabCorp will acquire LipoScience for $85.3 million, or $5.25 a share, in cash. The acquisition values LipoScience about $63 million.
The LipoScience board of directors approved the acquisition unanimously, and recommended that shareholder also approve the deal. "We believe LipoScience becoming part of LabCorp is a great outcome for patients, physicians, and our other stakeholders," LipoScience president and CEO Howard Doran said in a statement.
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Shares of LabCorp were falling 1% to $102.83 following the news.
TheStreet Ratings team rates LIPOSCIENCE INC as a Sell with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:
"We rate LIPOSCIENCE INC (LPDX) a SELL. This is driven by several weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its feeble growth in its earnings per share, deteriorating net income, disappointing return on equity and generally disappointing historical performance in the stock itself."
Highlights from the analysis by TheStreet Ratings Team goes as follows: