Myriad Genetics nudges guidance up as it prepares to hand prenatal to Labcorp

Myriad Genetics' prenatal business made $39.3 million last quarter, down 12%. Labcorp has agreed to pay $210 million in cash for it. Those two facts frame the third-quarter results Myriad reported on 4 November: total revenue of $202.7 million, down 1% on a year earlier but up 6% on the previous quarter.

The numbers

The Cancer Care Continuum business, now the centre of the company, brought in $123.9 million, up 1%, on 98,000 tests, up 4%. Hereditary cancer revenue slipped 1% on lower reimbursement even though volume rose 6%, though average revenue per hereditary test rose 9% on the previous quarter. GeneSight, the mental health test, grew revenue 2% to $39.5 million.

Get The Sequence every TuesdayThree-minute read. Free. One-click unsubscribe.

Myriad lost $43.9 million in the quarter, against $27.4 million a year earlier, and adjusted EBITDA was negative $5.3 million. Cash stood at $107.1 million at the end of September. Sales and marketing spend rose to $83.9 million from $71.0 million.

Full-year revenue guidance is now $780 million to $790 million, nudging the midpoint up from the previous $770 million to $790 million range. Of that, cancer care and mental health account for $620 million to $630 million, with prenatal contributing about $160 million.

"We have made meaningful progress on our path to accelerate profitable growth and strengthen the company's financial profile." Sam Raha, President and CEO, Myriad Genetics

The prenatal exit

Under the deal announced in October, Labcorp takes the Prequel, Foresight, SneakPeek and FirstGene tests for $210 million in cash plus the value of inventory at closing, with the deal expected to close by early 2027. Labcorp expects the business to add about $160 million of revenue in its first year. Myriad says the sale will strengthen its balance sheet to support investment in its priorities across the cancer care continuum.

In practice that means screening, treatment selection, monitoring and remission surveillance. Myriad is still pursuing Medicare coverage for Precise MRD in breast cancer, and it is working with SOPHiA GENETICS to advance a prostate cancer genomic instability score in clinical trials with AstraZeneca.

Who's running commercial

The commercial organisation already has new leadership. In September, Vishal Sikri, previously Senior Vice President, Product, was promoted to Executive Vice President, Commercial, as Chief Commercial Officer Brian Donnelly left the company, according to an 8-K filing.

The bigger picture

Selling a business with falling revenue to fund the one at the heart of your strategy is a clear call. Once the sale closes, Myriad's sales teams will be selling a narrower, more specialist cancer and mental health portfolio, in one of the fastest-moving parts of diagnostics.

What it means for hiring

A sharper oncology focus points to demand for oncology account managers, MRD specialists and medical affairs people who can sell tumour-informed testing to community and academic oncologists.
Reimbursement is visibly hitting hereditary revenue. Market access, payer relations and revenue cycle leaders are likely to be among the most valuable hires for Myriad and its peers, in our view.
Portfolio changes like this tend to reshape teams on both sides. Experienced reproductive health sales and lab people are worth watching as the deal moves towards closing in early 2027.

Share Ask Eric about this →