CareDx Sells Lab Products Business to EuroBio Scientific for \$170 Million, Reports Robust Q1 2026 Revenue Growth

Key Highlights for Investors

• Definitive Agreement to Divest Lab Products Business: CareDx, Inc. (Nasdaq: CDNA) has entered into a binding agreement to sell its Lab Products business to EuroBio Scientific for \$170 million in cash.
• Transaction Approved by Boards, Closing Expected by Q3 2026: The transaction has secured board approval from both companies and is anticipated to close by the end of CareDx’s third quarter, pending Swedish regulatory review.
• Strategic Focus: The divestiture is designed to sharpen CareDx’s focus on its core U.S.-based Precision Medicine Testing Services and Patient & Digital Solutions, aiming to simplify its operating model and support margin expansion.
• Financial Impact: Proceeds from the sale will support disciplined capital allocation, including potential strategic acquisitions aligned with CareDx’s precision diagnostics model and possible return of capital to shareholders.
• Exclusive Distribution Rights: As part of the deal, CareDx retains sole, perpetual rights to distribute post-transplant monitoring IVD tests in North America, including AlloSeq cfDNA, the IVD kit version of its market-leading AlloSure dd-cfDNA test.

First Quarter 2026 Preliminary Financial Results

• Total Revenue: Approximately \$118 million, up 39% year-over-year.
• Testing Services Revenue: Approximately \$91 million, up 48% year-over-year, with volume growth of 17% to about 54,900 tests.
• Average Revenue per Test: Around \$1,660, including ~\$14 million in prior period revenue.
• Patient and Digital Solutions Revenue: Approximately \$16 million, up 33% year-over-year.
• Lab Products Revenue: Around \$10 million, a 4% decline year-over-year (this segment is being divested).
• Liquidity: Cash, cash equivalents, and marketable securities of about \$198 million as of March 31, 2026.

Details of the Lab Products Business Divestiture

CareDx’s Lab Products business includes IVD PCR kits for rapid deceased donor HLA typing, IVD NGS-based kits for global transplant recipient HLA typing, and NGS-based monitoring assays for solid organ and stem cell transplant recipients outside North America. This business operates internationally with distinct manufacturing and regulatory requirements, making it less synergistic with CareDx’s U.S.-centered Precision Medicine Testing Services.

The transaction terms include a \$170 million upfront cash payment at closing and a minimum 6-month transition service agreement with EuroBio Scientific, at EuroBio’s expense. The divestiture will allow CareDx to redeploy capital toward its core business and potential inorganic (M&A) opportunities that further its growth strategy.

Importantly for North American operations, CareDx will retain exclusive perpetual rights to distribute post-transplant monitoring IVD tests in this market, safeguarding a key revenue and growth driver.

Management Commentary

“This divestiture allows us to strategically focus on our core Testing Services and Patient and Digital Solutions, where our solutions-selling strategy is working. In the first quarter, these segments delivered 48% and 33% year-over-year revenue growth, respectively,” said John Hanna, President and CEO of CareDx. “Having partnered with EuroBio Scientific since 2014, we believe their global scale and broad IVD capabilities position them well to execute the Lab Products business and continue providing the highest quality service to our IVD customers and patients worldwide.”

What Shareholders Should Know

• Near-term Financial Impact: The transaction will provide immediate liquidity and enhance CareDx’s ability to invest in higher-growth, higher-margin segments.
• Potential for Shareholder Returns: Management indicates proceeds may be used for both growth initiatives and possible return of capital to shareholders.
• Regulatory and Closing Risk: The deal requires regulatory approval in Sweden, introducing some execution risk. Investors should monitor for any update on closing status.
• Forward-Looking Guidance: The company expects to provide further financial guidance on its Q1 2026 earnings call scheduled for April 28, 2026.
• Market Sensitivity: The significant divestiture, strong revenue growth, and potential capital returns are all price-sensitive events that could move CareDx’s share price.

About the Parties

CareDx is a U.S.-based precision medicine company specializing in genomics-based testing and digital solutions for transplant patients, holding leadership positions in molecular transplant monitoring.

EuroBio Scientific is a leading European in vitro diagnostics company with a portfolio spanning transplantation, immunology, and infectious diseases, supported by a robust proprietary product pipeline and distribution network.

Forward-Looking Statements

This article contains forward-looking statements regarding the anticipated completion and impact of the transaction, expected financial results, and future strategies. Actual results may differ due to regulatory, operational, and market risks. Investors are advised to review CareDx’s filings with the U.S. Securities and Exchange Commission for a full discussion of risks and uncertainties.

Disclaimer: The information provided herein is for informational purposes only and should not be construed as investment advice. Please consult your financial advisor before making any investment decisions. The author and publisher are not responsible for any losses arising from reliance on this information.

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