Labcorp Myriad Prenatal Testing Deal Reaches $210M Agreement

Labcorp has agreed to acquire the prenatal health testing business of Myriad Genetics for $210 million. Announced on 20 October 2026, the Labcorp Myriad prenatal testing deal will expand the company's women's health diagnostics portfolio. Labcorp expects approximately $160 million in additional revenue during the first year.

Acquisition covers four prenatal screening tests

The agreement includes four tests used to assess pregnancy-related and inherited health risks.

FirstGene and Prequel provide prenatal screening from eight weeks of pregnancy. FirstGene assesses risks of common conditions, while Prequel screens for chromosomal abnormalities.

Foresight identifies whether prospective parents carry genetic conditions that could affect their children. SneakPeek predicts fetal sex from as early as six weeks of pregnancy.

The acquisition will bring these tests into Labcorp's existing women's health diagnostics business.

Myriad reports declining prenatal testing revenue

Myriad's prenatal testing business recorded $81.7 million in revenue in the first half of 2026, down 16% year over year.

During the second quarter, both testing volumes and average revenue per test fell.

In a July earnings call, Myriad executives attributed the performance to payer-related difficulties, the timing of sales force expansion and competitive pressures.

These challenges have affected the business as other prenatal testing providers expand their market presence.

Analysts assess potential margin improvements

Evercore ISI analysts expect Labcorp to improve the acquired business's financial performance through its existing laboratory infrastructure and provider relationships.

Their forecasts suggest adjusted operating margins could increase from 9% in fiscal 2027 to 14% in fiscal 2028. Margins could eventually reach 17.5% following full integration.

Evercore estimates the purchase price at approximately 1.3 times expected first-year revenue, excluding inventory.

By comparison, Labcorp's recently announced BioReference Health transaction carries a multiple of approximately 2.9 times revenue.

TD Cowen analysts nevertheless indicated that the $210 million upfront payment may exceed Myriad investors' expectations.

Competition increases in women's health diagnostics

The prenatal screening market has become increasingly competitive, with BillionToOne and Natera gaining market share.

Evercore analysts identified Labcorp's broad sales network as a potential advantage in reversing the acquired business's declining sales.

Labcorp has continued to use acquisitions to expand its geographic reach and speciality testing operations.

Bryan Vaughn, the company's diagnostic president, previously said speciality testing is a $2 billion business growing about three times faster than the overall market.

Acquisition supports Labcorp's diagnostics strategy

The transaction extends Labcorp's women's health capabilities while adding established prenatal genetic screening products.

For diagnostic laboratories, healthcare providers and medical equipment distributors, the Labcorp Myriad prenatal testing deal highlights continued consolidation in specialised laboratory services.

Medigear.uk covers the transaction as diagnostic companies expand testing portfolios through acquisitions and broader clinical distribution networks.

Source: MedTech Dive