Myriad Genetics Sells Prenatal Unit to Labcorp for $210 Million, Stock Surges 37%

Myriad Genetics agreed on Tuesday to sell its prenatal health testing business to Labcorp Holdings in an all-cash deal valued at $210 million, plus the value of the unit's inventory at the time of closing. The divestiture is expected to sharpen Myriad's focus on its core molecular diagnostics operations while improving the company's revenue growth profile, profitability, and balance sheet.

Shares of Myriad Genetics surged roughly 37.5% on the day, making it one of the top performers in the S&P Biotech ETF, which itself gained approximately 3.5%, and a leader among biotechnology sector stocks broadly. The stock closed up about 31.6% by end of day on heavy trading volume.

Wall Street's reaction was cautiously positive. Piper Sandler upgraded Myriad Genetics to Neutral from Underweight following the announcement, citing the deal's strategic benefits, though the firm set a price target of $5.00, implying roughly 13% downside from Tuesday's closing price of approximately $5.76. TD Cowen maintained its existing rating on the stock.