Myriad Genetics to Sell Prenatal Health Unit to Labcorp for $210 Million

What happened

Myriad Genetics, Inc. (Nasdaq: MYGN), a Salt Lake City-based genetic testing company, disclosed in an 8-K filing on October 20, 2026 that it signed an Asset Purchase Agreement on October 19 with Laboratory Corporation of America, a Delaware corporation, to sell its prenatal health business.

The business being sold includes Myriad's Foresight Carrier Screen, Prequel Prenatal Screen and FirstGene 4-in-1 Prenatal Screen laboratory developed tests, as well as the SneakPeek Early Gender Test, according to the filing. The price is $210 million in cash plus the value of the business's inventory at closing.

The filing says Labcorp has agreed to make employment offers to certain employees of the business on terms comparable to what they currently have.

Myriad's stock closed at $5.54 on the day the transaction was disclosed, up 31.59% from the previous close of $4.21. Volume was 23.9 million shares, about 10.9 times the average volume of 2.19 million, according to the price data.

Conditions and timing

The filing states that closing is subject to standard conditions, including the expiration or termination of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, receipt of required state health care law approvals and waiting period expirations, the absence of any law or governmental litigation that blocks the deal, and the accuracy of the parties' representations and warranties.

Either party can terminate if the deal has not closed by February 19, 2027. That deadline extends automatically to October 19, 2027 if regulatory clearances are the only outstanding condition, according to the filing.

The filing also states that Labcorp may be required to pay Myriad a $10.5 million termination fee under certain circumstances if the agreement is terminated because certain regulatory clearances were not obtained.

Concurrently with signing, the companies entered into a patent license agreement that takes effect at closing. At closing, the parties will also enter into additional agreements, including a transition services agreement.

What this means

A Form 8-K is the report a US public company must file with the Securities and Exchange Commission when a significant event occurs between regular quarterly reports. Item 1.01 of the form covers the entry into a "material definitive agreement" — here, the asset purchase agreement. Because the deal is large enough that investors would want to know about it before the next quarterly report, the company is required to disclose it on this form, generally within four business days.

Item 7.01 is a Regulation FD disclosure. Regulation FD (Fair Disclosure) requires companies to share material information with all investors at the same time rather than selectively. Myriad used this item to attach the press release announcing the deal, and the filing notes that this information is "furnished" rather than "filed," meaning it does not carry the same legal liability as formally filed financial statements.

The tests being sold are "laboratory developed tests," meaning they are designed, validated and performed within a single laboratory rather than manufactured and sold as kits. The SneakPeek test is a blood test that can be done early in pregnancy to check fetal sex; Prequel and Foresight are prenatal screening tests for conditions like chromosomal abnormalities and inherited genetic disorders.

The filing lays out the agreement but does not say why Myriad is selling the business or how it plans to use the $210 million. The filing does state that $210 million is the cash consideration and that inventory value will be added at closing.

The heavy trading volume and price move indicate that the filing was material to investors, though the provided materials do not explain what specific aspect of the deal drove the reaction.