Enzo Biochem Inc (NYSE:ENZ) shares are soaring in extended trading Thursday after the company agreed to sell its clinical lab to Laboratory Corporation Of America (NYSE:LH).
What Happened: Enzo entered into an agreement under which Labcorp will acquire its clinical lab division assets. The transaction is part of Enzo’s “focused return” efforts to maximize value for shareholders.
“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.
Bill Haas, senior vice president of Labcorp’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.”
Enzo plans to seek shareholder approval for the proposed sale at an upcoming special meeting of shareholders. More information regarding the transaction will be provided at that time.
ENZ Price Action: Enzo Biochem shares were up 110.1% at $2.51 at the time of publication, according to Benzinga Pro.
Photo: Michal Jarmoluk from Pixabay.
