What Happened?
Shares of genetic testing company Myriad Genetics (NASDAQ: MYGN) jumped 22.2% in the pre-market session after the company agreed to sell its Prenatal Health testing business to Labcorp for $210 million in cash plus inventory value.
Under the definitive asset purchase agreement, Labcorp will acquire the prenatal portfolio comprising Prequel, Foresight, SneakPeek, and FirstGene, the company stated in a press release. A regulatory Form 8-K filing detailed that Labcorp expects the acquired assets to deliver roughly $160 million in first-year revenue, with the deal expected to close by early 2027 and backed by a $10.5 million reverse termination fee. The $210 million in cash proceeds represents approximately 52% of Myriad’s $402.7 million market capitalization at the previous session’s close, based on Nasdaq trading records.
In coverage by Investing.com, the prenatal division had acted as a major financial headwind after second-quarter segment revenue slid 16% year-over-year to $39.8 million, contributing to a guidance reduction. Chief Executive Officer Sam Raha noted the divestiture will be accretive to company-wide revenue growth and profitability.
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What Is The Market Telling Us
Myriad Genetics’s shares are extremely volatile and have had 46 moves greater than 5% over the last year. But moves this big are rare even for Myriad Genetics and indicate this news significantly impacted the market’s perception of the business.
Myriad Genetics is down 9.7% since the beginning of the year, and at $5.54 per share, it is trading 32.2% below its 52-week high of $8.18 from November 2025. Investors who bought $1,000 worth of Myriad Genetics’s shares 5 years ago would now be looking at only $169.87.
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