Shares of Enzo Biochem (NYSE: ENZ) surged by more than 70% in pre-market trading on Friday after the molecular diagnostics company announced that it was divesting its Clinical Laboratory division (Enzo Clinical Labs) to Labcorp (LH). The financial terms of the transaction were not disclosed.
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This divestiture is a part of Enzo’s strategic initiative that it undertook last year to restructure its operations. As a part of this initiative, the company aims “to target business areas and industry sectors representing major growth opportunities.”
Hamid Erfanian, CEO of Enzo Biochem commented, “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.”
In the past five days alone, ENZ stock has gone up by more than 8%.
