Myriad Genetics Offloads Struggling Prenatal Unit for $210 Million to Labcorp

Labcorp Holdings Inc. (NYSE:LH) has agreed to acquire the prenatal health testing business of Myriad Genetics Inc. (NASDAQ:MYGN) in an all-cash transaction valued at $210 million, plus the value of the unit’s inventory upon closing. The agreement transfers Myriad’s complete prenatal diagnostic testing suite—including the Prequel, Foresight, SneakPeek, and FirstGene tests—to the laboratory services provider. Labcorp expects the newly acquired assets to generate approximately $160 million in top-line revenue during the first year of operation. Read Also: Labcorp Bets Big on AI, Specialty Testing to Drive Growth Through 2029 The company also anticipates the transaction will prove slightly accretive to its adjusted earnings in year one and reach average diagnostics segment margins by the end of year two once fully integrated. Portfolio Reach Over the past twelve months, thousands of healthcare providers utilized Myriad’s prenatal portfolio to screen more than 600,000 patients. Myriad intends to deliver additional commentary regarding the strategic sale and related organizational changes during its third-quarter financial results conference call on November 4. Both companies project the deal will close by early 2027. Prenatal Unit Challenges During the second quarter of 2026, Myriad cut its 2026 sales guidance from $860 million – $880 million to $770 million – $790 million. “While we are revising our full-year 2026 financial guidance due to lower Prenatal Health test volumes and more conservative assumptions regarding average revenue per test, we remain optimistic about our 2027 financial profile as we execute on multiple initiatives,” said Sam Raha, President and CEO of Myriad Genetics. During the second quarter, the prenatal business generated $144 million in sales. Prenatal testing revenue in the second quarter of 2026 declined 16% year-over-year, as volume decreased 9% year-over-year. Last week, Labcorp agreed to acquire select assets of BioReference Health from OPKO Health Inc. (NASDAQ:OPK) in a deal worth up to $872 million. Labcorp will acquire BioReference’s clinical and women’s health testing operations, urology and corrections testing businesses, and certain operational assets. The acquisition also includes more than 80 patient service centers. MYGN Price Action: Myriad Genetics shares were up 35.75% at $5.71 at the time of publication on Tuesday, according to Benzinga Pro data. Read Also: Apple Stock in Focus as iPhone Duo Launch, U.S. Expansion and Earnings Loom Photo: Shutterstock