BREAKING NEWS: Reversing Years of Expansion, Utah’s Myriad Genetics will Sell its Prenatal Testing Business for $210 Million in Cash to Labcorp

EXECUTIVE SUMMARY

✅  Myriad Genetics has agreed to sell its prenatal genetic-testing business to Labcorp for $210 million in cash, plus inventory, divesting an operation responsible for over 20% of its first-half 2026 revenue.

✅ The sale follows declining testing revenue, a $43.2 million second-quarter net loss, and a strategic review aimed at strengthening Myriad’s balance sheet and concentrating investment on cancer diagnostics.

✅  Myriad previously spent over $400 million acquiring companies that helped build its prenatal portfolio. Investors welcomed the latest transaction, sending its shares up over 31% yesterday.

21 October 2026 — SALT LAKE CITY — Salt Lake City-headquartered Myriad Genetics announced yesterday it has agreed to sell its Prenatal Health testing business to Labcorp for $210 million in cash (plus the value of inventory at closing).

This announcement marks a major strategic retreat from a market Myriad spent years expanding into, especially a product line responsible for slightly over 20% of the firm's first-half 2026 revenue.

As disclosed by Myriad in its Form 8-K filed with the U.S. Securities and Exchange Commission, Myriad (Nasdaq: MYGN) will transfer four prenatal testing products to Labcorp:
🟣 Prequel, which screens for certain fetal chromosomal conditions;
🟣 Foresight, which screens prospective parents for inherited genetic conditions;
🟣 SneakPeek, an early fetal-sex test; and
🟣 FirstGene, a newer prenatal screening offering.

The companies expect to complete the transaction by early 2027, subject to regulatory approvals and other closing conditions.

Labcorp, headquartered in Burlington, North Carolina, estimates that the acquired operation will generate approximately $160 million in revenue in its first year of ownership.

That places the $210 million base purchase price at roughly 1.31 times the buyer’s expected first-year revenue. Labcorp also expects the tests to make a modest positive contribution to adjusted earnings in year one and achieve its diagnostics division’s average margins by the end of year two.

The companies said the portfolio served more than 600,000 patients during the previous 12 months.

Why the Sale Matters Financially to Myriad

Myriad's prenatal genetic-testing business represents a substantial portion of Myriad's operations, and during the first six months of 2026, Prenatal Health generated $81.7 million of the company's $391.1 million in total revenue, or 20.9%.

But when you dig into the numbers, it's clear that revenue from the business line has been shrinking.

In the second quarter, prenatal revenue fell 16% from a year earlier to $39.8 million, while test volumes declined 9%. In fact, overall company revenue dropped 11% to $190.7 million, and Myriad recorded a $43.2 million net loss.

The company's second-quarter financial results also showed that management lowered full-year revenue guidance to $770 million–$790 million and suspended its previous adjusted earnings guidance.

Myriad's Chief Executive Officer and President, Sam Raha, also went so far as to explain that the company was reviewing its product portfolio to improve growth, profitability, and liquidity.

In part, he said:

"We are also doing a rigorous evaluation of our product portfolio to determine the optimal allocation of capital and enhancement of shareholder value.”

The liquidity implications are particularly significant. 

Myriad held $115.2 million in cash at 30 June, down from $149.6 million at year-end 2025, against $120.7 million in long-term debt.

The proposed $210 million cash payment is approximately 1.82 times its midyear cash balance, although taxes, transaction expenses, liabilities, and any use of proceeds will determine the eventual balance-sheet effect. 

A Strategic Reversal Years in the Making

The history behind this divestiture is especially revealing.

In July 2018, Myriad completed its acquisition of South San Francisco-based Counsyl, a reproductive genetic-testing company whose screening business became an important part of Myriad's women's health expansion.

Although the transaction was initially announced at $375 million, the company's subsequent SEC disclosure placed the final consideration transferred at $405.9 million in cash and stock.

Then, in November 2022, Myriad acquired Gateway Genomics, developer of SneakPeek, for an initial $67.5 million in cash, with up to $32.5 million in additional performance-based payments.

And as recently as July 2026, Myriad announced the launch of FirstGene, a product included in the newly agreed sale.

To be clear, those earlier corporate acquisitions and the current asset sale are not identical transactions. As such, their consideration cannot be compared to calculate a realized loss.

But the corporate strategy has plainly changed, as noted by Raha's statement in Myriad's Q2 2026 results announcement ...

An organization that once invested heavily to broaden its prenatal testing presence is now selling that business to concentrate capital elsewhere.

What Remains for Myriad and Utah?

Under Raha, Myriad is emphasizing genetic testing for
🟠 Cancer risk,
🟠 Diagnosis,
🟠 Treatment selection, and
🟠 Monitoring, while
🟠 Retaining its GeneSight mental health testing business.

The challenge is that the remaining operations also face financial pressure:
🔷 Cancer Care Continuum revenue declined 11% in the second quarter to $114.1 million, despite 6% growth in test volume; and
🔷 Mental Health revenue declined 3% to $36.8 million.

The disconnect between rising cancer-testing volume and falling cancer revenue illustrates the company’s continuing reimbursement challenges.

Investors nevertheless reacted enthusiastically to the sale as Myriad shares closed at $5.54 yesterday, up $1.33, or 31.59%, from the previous session, clearly a favorable initial market reaction, not a determination that the company's restructuring will succeed.

It's notable that the sale agreement requires Labcorp to offer comparable positions to certain transferring employees, but does not establish the number of Utah jobs affected or guarantee continued employment.

What's Next?

Myriad has scheduled its third-quarter earnings announcement for 4 November 2026, when management expects to provide more detail about the sale and related organizational changes.

The agreement also provides for a $10.5 million payment from Labcorp if the deal fails under specified regulatory circumstances.

But ...
🔺 How much cash will Myriad retain after the deal closes,
🔺 Will Myriad reduce its debt after-the-fact, and/or
🔺 How much of Myriad's overhead, if any, will disappear along with the prenatal revenue?

For context, Labcorp also announced a separate $722 million agreement a week ago to acquire selected BioReference Health assets from OPKO Health, but neither that transaction nor its sellers have the direct Utah connection of the Myriad divestiture.

The larger question for Myriad is whether selling a substantial, declining business can provide enough financial breathing room to make its narrower cancer-focused strategy profitable.

To me it appears that the $210 million agreement is an important first step.

But what actually happens (presuming the deal does close) will be the Myriad-related question to track over the months ahead.

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