Myriad Genetics to sell prenatal testing business to Labcorp for $210 million in cash

Myriad Genetics agreed to sell its prenatal health testing business to Laboratory Corporation of America for $210 million in cash plus the value of the unit's inventory at closing, the company said in a Form 8-K and press release dated October 20, 2026. Labcorp expects the business to add approximately $160 million of revenue in year one and to reach average diagnostics segment margins by the end of year two once fully integrated.

A $210 million cash price with inventory on top

Myriad signed the asset purchase agreement on October 19, 2026 with Laboratory Corporation of America, a Delaware corporation, according to the Form 8-K. The sale covers certain assets and liabilities of the prenatal health business: the Prequel Prenatal Screen, Foresight Carrier Screen and FirstGene 4-in-1 Prenatal Screen laboratory developed tests, plus the SneakPeek Early Gender Test. The price is $210 million in cash plus the value of the business's inventory at closing, so the final consideration depends on inventory at closing rather than resting on the cash figure alone. Labcorp has agreed to offer employment to certain employees of the business on comparable terms, and Myriad and a Labcorp affiliate signed a patent license agreement that takes effect at closing, alongside a transition services agreement to be executed then.

Labcorp's year-one math and a two-year margin path

Labcorp told investors the acquisition should add approximately $160 million in revenue in year one, be slightly accretive to adjusted earnings in that first year, and reach average diagnostics segment margins by the end of year two once fully integrated. Those are forward expectations, not reported results, and neither document gives standalone revenue or profit for the unit. Myriad said the portfolio has been used by thousands of providers and over 600,000 patients in the last twelve months. Sam Raha, Myriad's president and chief executive, framed the sale as the product of a strategic review: “This announcement is the direct outcome of our disciplined strategic review process, which is focused on sharpening our portfolio, enhancing operational execution, and driving shareholder value”. He also said the deal is expected to be accretive to Myriad's revenue growth and profitability, while strengthening the balance sheet and supporting continued investment in cancer care. Bryan Vaughn, president of Labcorp Diagnostics, said: “Myriad Genetics has built a highly complementary reproductive genetics platform, supported by innovative screening solutions and deep scientific expertise.”

A February 2027 deadline and a $10,500,000 reverse fee

Closing depends on clearing the Hart-Scott-Rodino antitrust waiting period and any required state health care approvals. Other conditions include the absence of government litigation that blocks the deal and no material adverse effect on the business. Either side can walk if the transaction has not closed by February 19, 2027; that date extends automatically to October 19, 2027 if the regulatory conditions are the only items outstanding. If the agreement ends because certain regulatory clearances were not obtained, Labcorp may owe Myriad a $10,500,000 termination fee — a reverse breakup fee that shifts part of the antitrust risk to the buyer. Myriad expects the deal to close by early 2027, and the filings describe no financing condition: Labcorp pays cash.

Silence on prenatal revenue, margins and proceeds

The filings leave out the unit's own revenue, profit and margin history, so no earnings-based valuation can be tested. Myriad did not disclose the prenatal unit's revenue, EBITDA, gross margin or the purchase price allocation, and it did not say what it will do with the proceeds beyond the balance-sheet language in the release. No earnings multiple can be computed from the disclosed figures. What the documents do establish is scope: four named tests, a cash price, inventory at closing, and a buyer that expects $160 million of first-year revenue from a business it says fills out its women's health portfolio. Myriad plans further comment on the transaction and related organizational changes on its third-quarter earnings call on November 4, 2026, the only follow-up the release schedules. Both the Hart-Scott-Rodino waiting period and state health care approvals must clear, and the agreement does not rank one above the other.