Myriad Genetics to sell its Prenatal Health unit to Labcorp for $210 million in cash
Myriad Genetics announced a definitive agreement to divest its Prenatal Health testing business to Labcorp for $210 million in cash, plus the value of inventory at closing. The transaction is subject to regulatory clearance and is expected to close by early 2027, with a possible deadline of February 19, 2027 that can be extended to October 19, 2027. Labcorp projects the acquired unit will generate about $160 million of revenue in its first year, while Myriad’s CEO Sam Raha said the sale will improve the company’s revenue growth and profitability and allow a sharper focus on cancer diagnostics.
Why it matters
The announcement sparked a pre‑market rally of more than 20% in Myriad’s shares, reflecting investor optimism about the cash proceeds and a clearer strategic focus. Labcorp expects the acquisition to add roughly $160 million of revenue in year 1, providing a modest earnings accretion in the near term.
Key facts
- 1Myriad agreed to sell its Prenatal Health testing business to Labcorp for $210 million in cash, plus inventory value. tradingview.com
- 2The deal is expected to close by early 2027, pending regulatory approval. tradingview.com
- 3Labcorp projects the acquired unit will generate approximately $160 million of revenue in its first year. rttnews.com
- 4CEO Sam Raha said the divestiture will boost Myriad’s revenue growth and profitability. investing.com
- 5The agreement includes a $10.5 million reverse termination fee. financialcontent.com
- 6The closing deadline is February 19, 2027, extendable to October 19, 2027. tradingview.com
Summary written by AlphAI AI Desk from 10 of 10 sources. Not investment advice. Figures are as stated by the linked sources.