Key insights
- Myriad Genetics (MYGN) stock surged 36% after announcing the sale of its Prenatal Health testing business to Labcorp (LH) for $210 million. The divestiture is expected to strengthen Myriad's balance sheet and support investment in cancer care. Labcorp anticipates the acquisition to add significant revenue and be accretive to earnings. The deal is subject to regulatory approval and is expected to close by early 2027.
Investing.com -- Myriad Genetics Inc (NASDAQ: MYGN) shares jumped 36% Tuesday following the company's announcement that it will sell its Prenatal Health testing business to Labcorp Holdings Inc (NYSE: LH) for $210 million in cash, plus inventory value at closing.
The transaction includes Myriad's Prequel, Foresight, SneakPeek, and FirstGene tests. The prenatal testing portfolio generated approximately $160 million in revenue over the last twelve months and served over 600,000 patients.
Sam Raha, President and CEO of Myriad Genetics, said the transaction is expected to be accretive to the company's revenue growth and profitability while strengthening the balance sheet to support investment in strategic priorities tied to the cancer care continuum.
Labcorp expects the acquisition to add approximately $160 million in revenue in year one and to be slightly accretive to adjusted earnings in the first year. The company anticipates reaching average diagnostics segment margins by the end of year two once fully integrated.
The deal is subject to regulatory clearance and customary closing conditions. The transaction is expected to close by early 2027.
Myriad plans to provide further commentary regarding the transaction and related organizational changes on its third quarter earnings call on November 4, 2026. Guggenheim Securities is acting as exclusive financial advisor to Myriad Genetics, while Barclays is serving as financial advisor to Labcorp.
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