Opko Health Inc (OPK)

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• Opko Health (OPK +0.8%) has signed a Commitment Letter with Veterans Accountable Care Group, LLC (VACG) in connection with a bid by its affiliate Veterans Accountable Care Organization (VACO) for a Veterans Health Administration (VHA) contract related to the Community Care Network, a project aimed at connecting veterans who lack easy access to VA facilities to local healthcare providers.
• If the bid is successful, Opko will acquire a 15% stake in VACO and will provide (or arrange with a third-party lender) a $50M line of credit for VACG in order for VACO to satisfy the financial stability requirement of the contract.
• Opko's BioReference Laboratories will provide lab services for CCN, a region in the eastern U.S. (MA, NH, VT, NY, PA, NJ, RI, CT, MD, VA, WV and NC) that includes ~2.1M veterans.