M&A
Myriad Genetics sells Prenatal Health testing business to Labcorp for $210M
Biotech
M&A
Key Facts
Signal Type
M&A
Industry
Biotech
Companies
Myriad Genetics, Labcorp, Natera, BillionToOne, Quest Diagnostics
Date
Myriad Genetics announced the sale of its Prenatal Health testing division to Labcorp for $210 million in cash. The transaction includes the Prequel, Foresight, SneakPeek, and FirstGene tests, along with inventory. Over 600,000 patients used these services in the past year. Labcorp expects the deal to add approximately $160 million in revenue in the first year and be slightly accretive to adjusted earnings.
Myriad Genetics will sharpen its focus on the cancer care continuum, while Labcorp expands its specialty testing portfolio, directly competing with Natera, BillionToOne, and Quest Diagnostics in prenatal testing. Patients and providers may see expanded access through Labcorp's patient service center network and data analytics tools.
The $210M transaction intensifies competition in the prenatal testing market. Labcorp now holds a stronger position after following a recent $722M upfront cash deal to acquire women's health capabilities from BioReference Health. Myriad's strategic pivot to cancer care may open opportunities for vendors supporting operational restructuring.
Integration of Labcorp's new prenatal testing assets and how Myriad reinvests the $210M proceeds into its cancer care strategy. Monitor Labcorp's margin progression toward average diagnostics segment margins by end of year two. Also watch for potential further divestitures as Myriad continues its disciplined strategic review process.
Source:
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