Myriad Genetics shares rose more than 20% in premarket trading on October 20, 2026, after the company announced an agreement to sell its prenatal health testing business to Labcorp. The transaction calls for $210 million in cash plus the value of inventory at closing and is expected to close in early 2027, subject to regulatory approval and other conditions.
Key Takeaways
- The purchase price is $210 million plus inventory value, rather than an inventory-inclusive total.
- Labcorp expects approximately $160 million in revenue from the acquired business in its first year.
- The sale remains subject to regulatory clearances and other closing requirements.
Table of Contents
- Myriad Genetics sets terms for prenatal business sale
- Labcorp’s revenue expectations remain forward-looking
- Regulatory conditions determine the closing timetable
- Conclusion
Myriad Genetics sets terms for prenatal business sale
Myriad’s prenatal business sale agreement, signed on October 19, covers certain assets and liabilities associated with four tests: Foresight Carrier Screen, Prequel Prenatal Screen, FirstGene 4-in-1 Prenatal Screen and SneakPeek Early Gender Test.
Labcorp has agreed to offer employment to certain employees of the business on terms comparable to their current arrangements. The companies also plan to enter into a transition services agreement at closing, while a patent license agreement signed alongside the purchase agreement will take effect then.
The distinction between the base price and inventory matters: the final cash consideration will include the inventory value measured at closing, so $210 million is not the complete purchase price.
| Item | Details |
|---|---|
| Initial termination date | Either party may terminate if the transaction has not closed by February 19, 2027, subject to the agreement’s extension provisions. |
| Regulatory extension | Automatic extension to October 19, 2027, under specified conditions involving outstanding regulatory clearances. |
| Potential termination fee | Labcorp may owe Myriad $10.5 million in specified circumstances involving failure to obtain certain regulatory clearances. |
Labcorp’s revenue expectations remain forward-looking
Labcorp projects that the acquired business will generate roughly $160 million in revenue during its first year. It anticipates modest earnings accretion by the second year and aims to bring the business to average diagnostics segment margins within two years.
Those figures are acquisition expectations, not completed financial results. The announced sale would narrow Myriad’s portfolio, while its other molecular diagnostics activities include oncology, women’s health and mental health.
The premarket share-price gain followed the announcement, but it does not establish whether Myriad’s remaining operations will achieve stronger growth or profitability.
Regulatory conditions determine the closing timetable
Completion requires applicable antitrust and state healthcare clearances, certain third-party consents and satisfaction or waiver of other customary conditions. The expected early-2027 closing is therefore a target, not a completed transfer.
The agreement also includes termination provisions that allow more time if regulatory approvals remain outstanding while other closing conditions have been met.
Conclusion
The next milestone is regulatory clearance and completion of the planned early-2027 sale. Until closing, the cash proceeds and transfer of the prenatal testing business remain contingent.
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