Myriad Genetics sells prenatal testing unit to Labcorp for $210m
Myriad Genetics has signed a definitive agreement to sell its Prenatal Health testing business to laboratory services giant Labcorp for $210 million in cash, plus the value of inventory at closing. The deal covers four branded tests: Prequel, Foresight, SneakPeek and FirstGene, which together served more than 600,000 patients and thousands of clinicians over the past twelve months.
The transaction marks a deliberate narrowing of Myriad's commercial focus. The NASDAQ-listed company has been conducting a strategic portfolio review, and the divestiture signals its intention to concentrate resources on oncology and the broader cancer care continuum rather than reproductive genetics.
The deal
Sam Raha, president and chief executive of Myriad Genetics, said the sale was "the direct outcome of our disciplined strategic review process" and described it as accretive to revenue growth and profitability while strengthening the balance sheet for further investment in oncology-focused priorities. No specific oncology programmes were named in the announcement.
For Labcorp, the acquisition slots into its specialty testing growth strategy. Bryan Vaughn, executive vice president and president of diagnostics at Labcorp, said the prenatal portfolio was "highly complementary" to the company's existing women's health offering, citing Myriad's "deep scientific expertise" in reproductive genetics. Labcorp projects the acquired business will contribute approximately $160 million in revenue in its first full year of ownership, be slightly accretive to adjusted earnings in year one, and reach average diagnostics segment margins by the end of year two after integration.
The transaction requires regulatory clearance and customary closing conditions, with completion expected by early 2027. Guggenheim Securities is advising Myriad, with Covington and Burlington as legal counsel. Barclays is advising Labcorp, with Polsinelli as legal counsel.
Market context
The deal reflects a broader trend of consolidation in the US diagnostics and genetic testing market. Large laboratory service operators such as Labcorp and Quest Diagnostics have consistently looked to scale up specialty testing lines, where pricing and volume economics tend to be more favourable than routine pathology. Prenatal screening, encompassing non-invasive prenatal testing and carrier screening, has become an increasingly crowded segment, with competition from dedicated reproductive genetics companies as well as diversified laboratory players.
For Myriad, the exit is strategically legible. The company built its reputation on hereditary cancer risk testing, particularly BRCA1 and BRCA2 screening, and its core commercial and scientific identity remains closer to oncology than to reproductive health. Shedding a segment that, while substantial in patient volume, sits outside that identity should free capital and management bandwidth for pipeline investments in tumour profiling, pharmacogenomics and companion diagnostics. Investors will be watching for guidance on how proceeds will be deployed when Myriad reports third-quarter earnings on 4 November 2026.
Labcorp, which supported more than 85 per cent of new FDA-approved drugs and therapeutic products in 2025 according to the company's own figures, gains a ready-made reproductive genetics capability without the time and cost of building it organically. Patient continuity is a stated priority for both parties, with Myriad committing to an orderly transition that preserves uninterrupted access to the four prenatal tests throughout the closing process.