Myriad agrees to sell pregnancy testing business to Labcorp for $210 million
Key Facts
Myriad Genetics announced on October 20, 2026, a definitive agreement to sell its pregnancy health testing business to Labcorp for $210 million in cash, as it seeks to strengthen its balance sheet and focus on cancer care. The purchase price will also include the value of the business's inventory at closing, according to the company's statement. The asset purchase agreement was signed on October 19, 2026, according to Myriad's filing with the U.S. Securities and Exchange Commission. The assets to be sold include the Prequel, Foresight, SneakPeek and FirstGene tests. The company said its pregnancy testing portfolio had been used by more than 600,000 patients in the twelve months preceding the announcement.
Chief Executive Sam Raha said the transaction was expected to support revenue growth and profitability and strengthen the balance sheet to fund the company's cancer care priorities. Myriad's cancer care business generated revenue of $114.1 million in the second quarter of 2026, according to the company's financial results. Labcorp, meanwhile, expects the business to add "$160 million in revenue in the first year," according to the companies' joint statement. It also expects a modest increase in adjusted earnings in the first year of the transaction. It aims to bring the business's margins in line with the average for its diagnostics segment by the end of the second year, following completion of the integration.
The agreement follows a decline in Myriad's performance in the second quarter of 2026, when revenue totaled $190.7 million, according to results released by the company. Revenue fell 11% from the same period a year earlier. The decline in pregnancy testing revenue was steeper, at 16% year on year in the same quarter. The business's revenue decline coincided with a 9% drop in testing volume from a year earlier, according to the earnings statement. Myriad's cash and cash equivalents stood at $115.2 million at the end of the second quarter.
When announcing those results, Myriad lowered its fiscal 2026 revenue guidance to between $770 million and $790 million. It also suspended its previous adjusted earnings before interest, taxes, depreciation and amortization guidance for the same year, citing its performance and ongoing strategic initiatives. On the day the sale agreement was announced, the company's shares rose 21.4% in premarket trading, according to Investing.com. During the session, Myriad's investor relations dashboard showed a share price of $5.78. The dashboard displayed a gain of 37.26% on October 20, 2026, in an intraday reading.
Under the agreement, the buyer committed to making employment offers to certain employees of the business on terms comparable to their current arrangements, according to Myriad's contractual disclosure. Myriad and a subsidiary of the buyer also signed a patent licensing agreement that will take effect at closing. The parties intend to enter into a transition services agreement upon completion of the transaction. Closing requirements include the expiration of antitrust waiting periods, receipt of required approvals and expiration of waiting periods under state healthcare laws. The buyer may be required to pay a termination fee of $10,500,000 in specified circumstances if the agreement is terminated because certain regulatory approvals are not obtained.
Myriad's next scheduled disclosure is on November 4, 2026, when it plans to release third-quarter results after the market closes. The company will hold its earnings conference call the same day at 4:30 p.m. U.S. Eastern time. The companies expect to complete the sale by early 2027, subject to regulatory approvals and customary closing conditions. The agreement allows either party to terminate it if the transaction has not closed by February 19, 2027. That deadline automatically extends to October 19, 2027, if regulatory approvals remain outstanding and the other closing conditions have been satisfied or waived, according to the filing.