Myriad Genetics is divesting its Prenatal Health testing business to Labcorp in a deal valued at $210 million in cash, plus the value of the business’s inventory at closing. The sale includes the Prequel, Foresight, SneakPeek and FirstGene tests.
The transaction gives Labcorp additional reach in prenatal testing, where it is seeking to compete with providers including Natera, BillionToOne and Quest Diagnostics. Labcorp said the acquisition should expand access through its laboratory services, patient service center network, and data analytics and digital tools.
The commercial rationale
Labcorp said more than 600,000 patients were tested with Myriad’s Prenatal Health services over the last year. The company expects the acquisition to contribute around $160 million in revenue in year one, to be slightly accretive to adjusted earnings in year one, and to reach average diagnostics segment margins by the end of year two once fully integrated.
The purchase also fits a broader specialty testing strategy. The agreement comes shortly after Labcorp signed a $722 million upfront cash deal to acquire women’s health and urology capabilities from BioReference Health. Taken together, the moves suggest Labcorp is building density in testing categories where scale, distribution and payer relationships can matter as much as the assay menu itself.
For Myriad, the sale is a portfolio choice. President and CEO Sam Raha said the announcement was the outcome of a strategic review process aimed at sharpening the portfolio, enhancing operational execution and driving shareholder value. He also said the transaction is expected to be accretive to Myriad’s revenue growth and profitability while strengthening the balance sheet to support continued investment in strategic priorities tied to the cancer care continuum.
What the deal changes
Bryan Vaughn, Labcorp’s executive vice president and president of diagnostics, said Myriad had built a complementary reproductive genetics platform supported by screening products and scientific expertise. The immediate implication is that Labcorp is buying established test volume and category capability rather than launching de novo products into a crowded field.
The strategic signal is straightforward: prenatal and reproductive testing remains active enough commercially to attract buyers, but the value proposition is increasingly tied to operating scale and channel access. Myriad is using the sale to concentrate capital and management attention, while Labcorp is using it to broaden a specialty diagnostics franchise that already spans women’s health.
