Myriad Genetics to Sell Prenatal Testing Business to Labcorp for $210 Million

Key Points

• Myriad Genetics agreed to sell its Prenatal Health testing business to Labcorp for $210 million in cash, plus the value of inventory at closing.
• The sale includes the Prequel, Foresight, SneakPeek and FirstGene tests.
• Myriad says the deal will strengthen its balance sheet and support a sharper focus on cancer care.
• Labcorp expects the acquired business to generate approximately $160 million in revenue during the first year.
• Closing is expected by early 2027, subject to regulatory clearance and customary conditions.

Myriad Genetics (NASDAQ: MYGN) has signed an agreement to sell its prenatal testing business to Labcorp (NYSE: LH), marking a shift toward a more focused portfolio.

For Myriad, the proposed sale would provide cash to support its priorities in cancer care. For Labcorp, the acquisition would expand its reproductive genetics and women’s health testing services.

Myriad Plans to Focus Resources on Cancer Care

The transaction follows Myriad’s strategic review of its business. CEO Sam Raha said the sale is expected to improve the company’s revenue growth profile and profitability while strengthening its balance sheet.

That does not mean the sale itself adds revenue to Myriad. The company expects the remaining business to have a stronger growth and profitability profile after the prenatal unit is sold.

Myriad plans to discuss the transaction and related organizational changes during its third-quarter earnings call on November 4, 2026.

Labcorp Expects $160 Million in First-Year Revenue

Labcorp expects the acquired business to contribute approximately $160 million in revenue and slightly increase adjusted earnings in the first year.

By the end of year two, once integration is complete, Labcorp expects the business to reach its average diagnostics segment margins.

These are company projections, not completed financial results. Performance will depend in part on successful integration.

Companies Aim to Maintain Patient Access During Transition

The prenatal testing portfolio served more than 600,000 patients and thousands of providers over the past 12 months.

The companies say they will work to preserve uninterrupted access to the tests. Labcorp also expects to connect the business with its laboratory services, patient service centers and digital tools.

Investor Takeaway: Different Growth Strategies for Each Company

For MYGN investors, the deal offers a cash infusion and a narrower focus on cancer care. For LH investors, it adds an established testing portfolio with a projected first-year revenue contribution.

The transaction has not closed. Regulatory clearance, completion of the sale and integration progress remain the key milestones.