Myriad Genetics Inc (MYGN) · Oct 20, 2026 · Disposition
$210M divestiture — $210M cash plus inventory; prenatal revenue was $39.8M in Q2
Myriad Genetics’ disposition of its prenatal testing business brings $210M in cash and refocuses the company on cancer diagnostics after prenatal weakness.
Myriad is trying to pivot from a broad molecular-diagnostics portfolio toward the Cancer Care Continuum, while its Prenatal Health business has been the weak link: second-quarter prenatal revenue fell 16% year over year to $39.8 million and volume declined 9%. This filing turns that strategic problem into a cash-generating exit. Myriad will sell the Prenatal Health portfolio—including Prequel, Foresight, FirstGene and SneakPeek—to Labcorp for $210 million in cash plus inventory. The consideration is roughly 1.3 times the business’s latest annualized quarterly revenue, although the filing does not disclose the unit’s standalone profit or book value.
| Item | Filing figure / comparison |
|---|---|
| Sale consideration | $210 million cash plus inventory at closing (Purchase Agreement) |
| Prenatal Health revenue | $39.8 million in Q2 2026 (external company results) |
| Prenatal testing trend | Revenue down 16% year over year; volume down 9% year over year (external company results) |
| Business reach | More than 600,000 patients over the last twelve months (Press Release) |
| Potential regulatory termination fee | $10.5 million (Purchase Agreement) |
The strategic benefit is more important than the headline revenue loss. Prenatal Health was previously one of Myriad’s stated growth pillars, but recent results showed declining volume, payer friction and weaker operating momentum. Management now says the transaction should be accretive to revenue growth and profitability and strengthen the balance sheet for investment in cancer diagnostics. That means absolute revenue will fall when the business leaves, but the remaining company should have a faster-growing, more focused mix if the cancer strategy executes.
The deal is not yet cash in hand. Closing requires antitrust and state health-care clearances, third-party consents and other customary conditions; the outside date is February 19, 2027, with a possible extension to October 19, 2027 for regulatory approvals. Buyer may owe a $10.5 million termination fee if specified regulatory clearances fail. 〔0〕 The transaction is therefore a meaningful new strategic step, but the balance-sheet benefit remains contingent on completion.
Bottom line: Myriad is monetizing a weakening business and concentrating resources on cancer diagnostics, where its growth investment is already focused. The transaction materially advances that repositioning, though the proceeds and portfolio reset depend on closing in 2027.
Q3 earnings call, November 4, 2026
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