Myriad Genetics Agrees To Sell Prenatal Testing Business To Labcorp For $210 Million In Cash
Labcorp expects the business to add approximately $160 million in first-year revenue; closing is targeted for early 2027.
Myriad Genetics agreed to sell its prenatal health testing business to Labcorp for $210 million in cash, plus the value of the business's inventory at closing, according to an 8-K filed Tuesday. The asset purchase agreement is dated October 19 and the deal still needs regulatory clearance.
What the 8-K and press release say
The buyer is Laboratory Corporation of America, known as Labcorp. The assets include the Foresight Carrier Screen, Prequel Prenatal Screen and FirstGene 4-in-1 Prenatal Screen tests, plus the SneakPeek Early Gender Test. Labcorp has agreed to offer jobs to certain employees of the business on comparable terms.
In the press release filed as an exhibit, Myriad said the portfolio has been used by thousands of providers and over 600,000 patients in the last twelve months.
Labcorp expects the business to add approximately $160 million in revenue in year one and to be slightly accretive to adjusted earnings (adding a little to per-share profit) in year one. It expects to reach average diagnostics segment margins by the end of year two, once fully integrated.
Myriad and a Labcorp affiliate also signed a patent license agreement that takes effect at closing. A transition services agreement is among the further agreements to be signed then.
What it changes for Myriad
CEO Sam Raha called the sale "the direct outcome of our disciplined strategic review process." He said it is expected to add to Myriad's revenue growth and profitability and to strengthen the balance sheet, supporting investment in priorities tied to the cancer care continuum.
The agreement sets two walk-away dates. Either side can terminate if the deal has not closed by February 19, 2027. That date extends automatically to October 19, 2027 if only the regulatory clearances are outstanding.
Labcorp may owe Myriad a $10,500,000 termination fee if the agreement ends because certain regulatory clearances are not obtained. Closing requires the expiration of the Hart-Scott-Rodino antitrust waiting period and any required state health-care-law approvals.
Myriad shares closed at $4.21 on Monday, up 5.78% from the prior session, before the deal was disclosed Tuesday morning.
What to watch
Myriad plans to comment further on the deal, and on other related organizational changes, on its third quarter earnings call on November 4, 2026.
The companies expect to close by early 2027; the agreement's outside date, if regulators are still reviewing, is October 19, 2027.
Sources
- 8-K Filing — MYRIAD GENETICS INC (MYGN) — SEC EDGAR
- Exhibit ex991pressreleaseofmyriadg.htm — MYRIAD GENETICS INC 8-K exhibit — SEC EDGAR
