Myriad Genetics is selling off its Prenatal Health testing biz to Labcorp for $210 million in cash.
The deal includes Prequel, Foresight, SneakPeek and FirstGene tests. The $210 million deal also adds the value of the inventory of the Prenatal Health testing business at closing.
The move positions Labcorp to compete with major prenatal testing providers, including Natera, BillionToOne and Quest Diagnostics.
Labcorp is seeking to provide more patients and physicians with expanded access to its laboratory services, patient service center network, and data analytics and digital tools.
The agreement aligns with Labcorp’s strategy of expanding into speciality testing and shortly follows a $722M upfront cash deal to acquire women’s health and urology capabilities from BioReference Health.
“This announcement is the direct outcome of our disciplined strategic review process, which is focused on sharpening our portfolio, enhancing operational execution and driving shareholder value,” said Sam Raha, President and CEO, Myriad Genetics, in a release.
“This transaction is expected to be accretive to Myriad’s revenue growth and profitability, while meaningfully strengthening the balance sheet to support continued investment in our strategic priorities tied to the cancer care continuum and long-term value creation.”
“Myriad Genetics has built a highly complementary reproductive genetics platform, supported by innovative screening solutions and deep scientific expertise,” added Bryan Vaughn, Executive Vice President and President of Diagnostics, Labcorp, in a statement.
“By combining these capabilities with Labcorp's operational strength and high-quality women's health portfolio, we aim to improve outcomes, expand access to advanced screening solutions and enhance the patient and provider experience.”
Over 600,000 patients have been tested with Myriad’s Prenatal Health services over the last year, according to Labcorp.
The company expects the deal to add 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 end of year two, once fully integrated.