Myriad Genetics and Labcorp Announce Definitive Agreement for Myriad to Sell Prenatal Health Testing Business to Labcorp
Myriad expects the sale to strengthen its balance sheet and support continued investment in its cancer care priorities.
Sentiment and the balance of points
Rhea-AI Sentiment reads the wording of the document, how positive or negative its language is on a 1 to 5 scale. The balance of points shown with the takes weighs what the document actually discloses, so the two can disagree, for example when a trial that missed its main goal is described in upbeat language.
Rhea-AI Summary
Myriad Genetics (NASDAQ: MYGN) signed a definitive agreement to sell its Prenatal Health testing business to Labcorp for $210 million in cash. The purchase price also includes the business’s inventory value at closing. The sale covers the Prequel, Foresight, SneakPeek and FirstGene tests and is expected to close by early 2027, subject to regulatory clearance and customary closing conditions.
Myriad expects the transaction to improve its revenue growth and profitability and strengthen its balance sheet to support investment in cancer care priorities. The prenatal portfolio served over 600,000 patients over the last twelve months. Labcorp (NYSE: LH) expects approximately $160 million in revenue in year one, slight accretion to adjusted earnings in year one, and average diagnostics segment margins by the end of year two, once fully integrated.
How this balance works
Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.
It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.
Rhea-AI Sentiment measures something else, the tone of the wording.
Hollow bars mark forward-looking points. How the balance works
Positive
- Major pointPrenatal business sale agreement provides for $210 million in cash, plus inventory value at closing. 52% of market cap
- Minor point. Forward-looking: it has not happened yet and may not happen.Myriad expects the transaction to improve revenue growth and profitability.
- Minor point. Forward-looking: it has not happened yet and may not happen.Myriad expects a stronger balance sheet to support continued investment in cancer care priorities.
Negative
- Minor pointTransaction remains subject to regulatory clearance, with closing expected by early 2027.
Details
Market move: MYGN +31.35% vs previous close. Prenatal Health business sale
On Oct 20, the day this news came out, the latest delayed price for MYGN is 31.35% above the previous close. Argus tracked a peak move of +9.6% during the session. Our momentum scanner has recorded 90 alerts for this stock so far that day. The latest delayed price is $5.53. Relative volume is exceptionally heavy at 74.2x the average.
Data tracked by StockTitan Argus (15 min delayed). Upgrade to Gold for real-time data.
Key Figures
- Sale consideration
- $210 million in cash
- Plus the value of inventory at closing
- Year-one revenue contribution
- Approximately $160 million
- Expected for Labcorp in year one
- Adjusted earnings
- Slightly accretive
- Expected for Labcorp in year one
- Diagnostics segment margins
- Reach average segment margins
- Expected by the end of year two, once fully integrated
- Patients served
- Over 600,000 patients
- Used Myriad’s Prenatal Health testing portfolio over the last twelve months
- Expected closing
- By early 2027
- Subject to regulatory clearance and customary closing conditions
Historical Context
-
Prenatal Health revenue was $39.8 million, down 16% year over year.
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Key Terms
definitive agreement financial
accretive financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
Transaction to benefit patients through expanded access and support Myriad’s strategic priorities
SALT LAKE CITY and BURLINGTON, N.C., Oct. 20, 2026 (GLOBE NEWSWIRE) -- Myriad Genetics, Inc. (NASDAQ: MYGN), a leader in molecular diagnostic testing and precision medicine, and Labcorp (NYSE: LH), a global leader in innovative and comprehensive laboratory services, today announce they have entered into a definitive agreement for Myriad to sell its Prenatal Health testing business, which includes the Prequel®, Foresight®, SneakPeek®, and FirstGene® tests, to Labcorp for
“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,” said Sam Raha, President and CEO, Myriad Genetics. “This transaction is expected to be accretive to Myriad’s revenue growth and profitability, while meaningfully strengthening the balance sheet to support continued investment in our strategic priorities tied to the cancer care continuum and long-term value creation. Working closely with Labcorp, one of the nation’s largest laboratory service providers, we expect a smooth transition that preserves uninterrupted patient access to our prenatal tests.”
When complete, the transaction is expected to provide more patients and physicians with expanded access to Labcorp’s comprehensive, high-quality laboratory services, convenient patient service center network, robust data analytics and digital tools.
"This transaction supports Labcorp's specialty testing growth strategy," said Bryan Vaughn, Executive Vice President and President of Diagnostics, Labcorp. “Myriad Genetics has built a highly complementary reproductive genetics platform, supported by innovative screening solutions and deep scientific expertise. By combining these capabilities with Labcorp's operational strength and high-quality women's health portfolio, we aim to improve outcomes, expand access to advanced screening solutions and enhance the patient and provider experience.”
Labcorp expects the transaction to add approximately
Over the last twelve months, Myriad’s Prenatal Health testing portfolio has been used by thousands of providers and over 600,000 patients. Myriad plans to provide further commentary regarding this transaction, and other related organizational changes, on its third quarter earnings call on November 4, 2026.
The deal is subject to regulatory clearance and customary closing conditions, and the transaction is expected to close by early 2027.
Guggenheim Securities, LLC is acting as exclusive financial advisor, and Covington & Burlington LLP is acting as legal advisor to Myriad Genetics.
Barclays is acting as financial advisor, and Polsinelli is acting as legal advisor to Labcorp.
About Myriad Genetics
Myriad Genetics is a leading molecular diagnostic and precision medicine company committed to advancing health and well-being for all. Myriad Genetics develops and commercializes molecular tests that help patients and providers uncover genetic insights. Our tests assess the risk of developing disease or disease progression and guide treatment decisions across medical specialties where molecular insights can significantly improve patient care, support earlier detection, enable more precise treatment and contribute to lowering healthcare costs. For more information, visit myriad.com.
About Labcorp
Labcorp (NYSE: LH) is a global leader of innovative and comprehensive laboratory services that helps doctors, hospitals, pharmaceutical companies, researchers and patients make clear and confident decisions. We provide insights and advance science to improve health and improve lives through our unparalleled diagnostics and drug development laboratory capabilities. The company's nearly 71,000 employees serve clients in approximately 100 countries, provided support for more than
Myriad Genetics Safe Harbor Statement
This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding the sale of Myriad’s Prenatal Health testing business; the expected benefits of the transaction, including that it will be accretive to Myriad’s revenue growth and profitability, strengthen its balance sheet, and support investment in its strategic priorities; and the expectation that the transaction will close by early 2027. These “forward-looking statements” are management’s expectations of future events as of the date hereof and are subject to known and unknown risks and uncertainties that could cause actual results, conditions, and events to differ materially and adversely from those anticipated. Such factors include those risks described in the Myriad’s filings with the U.S. Securities and Exchange Commission, including Myriad’s Annual Report on Form 10-K filed on February 24, 2026, as well as any updates to those risk factors filed from time to time in Myriad’s Quarterly Reports on Form 10-Q or Current Reports on Form 8-K. Myriad is not under any obligation, and it expressly disclaims any obligation, to update or alter any forward-looking statements, whether as a result of new information, future events or otherwise except as required by law.
Labcorp Cautionary Statement Regarding Forward-Looking Statements
This press release contains forward-looking statements, including, but not limited to, statements with respect to the anticipated benefits of the transaction for providers and patients, its advancement of Labcorp’s strategic priorities, and the expected financial impact of the transaction, including expected post-closing revenues and margins, and the timing of achieving such financial results.
Each of the forward-looking statements is subject to change based on various important factors, many of which are beyond Labcorp's control. These factors, in some cases, have affected and in the future (together with other factors) could affect Labcorp's ability to implement its business strategy, and actual results could differ materially from those suggested by these forward-looking statements. As a result, readers are cautioned not to place undue reliance on any of the forward-looking statements.
Labcorp has no obligation to provide any updates to these forward-looking statements even if its expectations change. All forward-looking statements are expressly qualified in their entirety by this cautionary statement. Further information on potential factors, risks and uncertainties that could affect operating and financial results is included in Labcorp's most recent Annual Report on Form 10-K under the heading RISK FACTORS and in subsequent quarterly reports on Form 10-Q and its other filings with the SEC. The information in this press release should be read in conjunction with a review of Labcorp's filings with the SEC including the information in its most recent Annual Report on Form 10-K under the heading "MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS".
| Myriad Contacts: | |
| Investors: | Matt Scalo (801) 584-3532 IR@myriad.com |
| Media: | Andria Rosell (385) 202-3510 PR@myriad.com |
| Labcorp Contacts: | |
| Investors: | Nickolo Russo Investor@Labcorp.com |
| Media: | Racquel White Media@Labcorp.com |
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
How much will Myriad Genetics receive for its prenatal testing business?
The agreement provides for $210 million in cash, plus the value of the Prenatal Health testing business’s inventory at closing. Labcorp will acquire the business, including the Prequel, Foresight, SneakPeek and FirstGene tests.
When is Myriad Genetics expected to complete the prenatal business sale to Labcorp?
The transaction is expected to close by early 2027. Completion remains subject to regulatory clearance and customary closing conditions.
When will Myriad Genetics provide more details about the prenatal business sale and organizational changes?
Myriad plans to provide further commentary on the transaction and other related organizational changes during its third quarter earnings call on November 4, 2026.