Myriad Genetics Raises Revenue Outlook Midpoint To Sell Prenatal Unit For $210 Million
Myriad is selling its prenatal business to Labcorp and narrowing to cancer care, while its third-quarter loss widened to $43.9 million.
Myriad Genetics, which develops molecular tests that read a patient's genes to assess disease risk and guide treatment, raised the midpoint of its 2026 revenue forecast to a $780 million to $790 million range on Wednesday. The same earnings report showed a wider third-quarter loss and a deal to sell its prenatal business to Labcorp for $210 million in cash.
A flat quarter with a wider loss
Third-quarter revenue was $202.7 million, up 6% from the second quarter and down 1% from a year earlier, according to the 8-K filing. The net loss was $43.9 million, or $0.46 per share, against $27.4 million, or $0.29 per share, a year earlier.
Gross margin was 67.9%, down 200 basis points (2 percentage points) from a year earlier, which the company tied to lower test volumes and added spending on laboratory staff. The operating loss widened to $39.9 million from $23.3 million. Adjusted operating expenses rose $9.9 million to $149.9 million, which the company attributed to multi-year strategic investment.
Adjusted free cash flow was $1.6 million, down from $18.6 million a year earlier. Cash stood at $107.1 million at the end of September, compared with $149.6 million at the end of 2025.
Cancer holds, prenatal shrinks
Cancer Care Continuum revenue rose 1% to $123.9 million and Mental Health, which is the GeneSight psychiatric-medication test, rose 2% to $39.5 million. Prenatal Health fell 12% to $39.3 million as its test volume dropped 11% to 138,000 tests.
CEO Sam Raha said the prenatal sale is "a decisive step" toward focusing on cancer care, from screening and treatment selection to monitoring and remission surveillance. He said he expects it to improve revenue growth, profitability and liquidity.
The Labcorp sale and the new guidance
Myriad agreed on October 19 to sell the Prenatal Health business, including the Prequel, Foresight, SneakPeek and FirstGene tests, to Labcorp for $210 million in cash plus the value of its inventory at closing. The company expects closing by early 2027, subject to regulatory approvals.
The 2026 forecast now splits revenue into $620 million to $630 million for the businesses Myriad is keeping and about $160 million for prenatal. Adjusted gross margin is guided to 66% to 67%. Raha said the raise is modest because the third-quarter beat is balanced against the timing of the sale.
Management discusses the results on a call at 4:30 p.m. ET on Wednesday.
Sources
- 8-K Filing — MYRIAD GENETICS INC (MYGN) — SEC EDGAR
- Exhibit ex991mygn-xearningsrelease.htm — MYRIAD GENETICS INC 8-K exhibit — SEC EDGAR
- Myriad Genetics Q3 2026 Earnings Call Transcript — benzinga.com
- Myriad Genetics Reports Third Quarter 2026 Financial — globenewswire.com
