Labcorp to buy Myriad's prenatal unit for $210M as Myriad lifts outlook
What's the deal? LabcorpDealroom has a profile for this one. Try Dealroom → has agreed to buy Myriad Genetics'Dealroom has a profile for this one. Try Dealroom → Prenatal Health business for $210 million in cash plus inventory value. The unit includes the Foresight, Prequel, FirstGene, and SneakPeekDealroom has a profile for this one. Try Dealroom → screening tests. The deal, announced October 19, 2026, is targeted to close by early 2027.
What's the endgame? Myriad is a molecular diagnostics company spanning oncology, mental health, and genetic screening. Selling the prenatal unit lets it concentrate on cancer-related testing, which it says will support revenue growth, profitability, and liquidity.
Why now? Prenatal has been a drag. Volumes fell 11% year over year to roughly 138,000 tests, and Myriad expects the unit to contribute only about $160 million in 2026 — down sharply from $637 million in 2025.
By the numbers: Myriad reported third-quarter revenue of $202.7 million, up 6% sequentially but down 1% year over year. Net loss widened to $43.9 million, or $0.46 per share, from $27.4 million a year earlier. Cash and equivalents stood at $107.1 million as of September 30, 2026.
Alongside the sale, Myriad raised the midpoint of its full-year 2026 revenue guidance to $780 million–$790 million. It expects Cancer Care Continuum and Mental Health revenue of $620 million–$630 million, up from $537 million in 2025. Average revenue per test rose 7% sequentially, helped by product mix and improved payer engagement.
What could go wrong? The strategic logic is clear, but execution remains the test. Myriad's prenatal business has shown pressure from volume, reimbursement, and pricing, and the deal will not close until early 2027. The raised guidance is a modest improvement, not proof of a broad turnaround.
The signal: At about 1.3 times the prenatal unit's trailing revenue, the sale fits Labcorp's push into specialty testing while handing Myriad a cleaner, oncology-focused profile. It is a bet that both companies grow faster apart than together.
Read more: rttnews.com
Image credit: SneakPeek
