CareDx to sell lab products unit for $170 million in cash

BRISBANE, Calif. - CareDx, Inc. (NASDAQ:CDNA) announced Tuesday it has entered a definitive agreement to sell its Lab Products business to EuroBio Scientific for $170 million in cash.

The Lab Products business includes in vitro diagnostic PCR kits for deceased donor HLA typing, NGS-based kits for transplant recipient HLA typing globally, and NGS-based monitoring assays for solid organ and stem cell transplant recipients outside North America.

The transaction has been approved by the boards of directors of both companies. CareDx will provide transition services to EuroBio Scientific for at least six months at the buyer’s expense. EuroBio Scientific will grant CareDx the exclusive perpetual right to distribute post-transplant monitoring IVD tests in North America, including AlloSeq cfDNA.

The transaction requires Swedish regulatory review and is expected to close by the end of CareDx’s third quarter 2026.

CareDx said it plans to focus on its core Testing Services and Patient and Digital Solutions segments. "This divestiture allows us to strategically focus on our core Testing Services and Patient and Digital Solutions, where our solutions-selling strategy is working," said John Hanna, President and CEO of CareDx.The $170 million cash infusion will strengthen an already solid balance sheet. According to InvestingPro data, CareDx holds more cash than debt, with a debt-to-equity ratio of just 0.09. The company’s current ratio stands at 2.86, indicating strong liquidity to support its strategic initiatives.

The company also provided preliminary first quarter 2026 results, reporting revenue of approximately $118 million, representing 39% year-over-year growth. Testing Service volume reached approximately 54,900, up 17% year-over-year, while Testing Service revenue grew 48% to approximately $91 million. Patient and Digital Solutions revenue increased 33% to approximately $16 million. Lab Products revenue declined 4% to approximately $10 million.

Average revenue per test was approximately $1,660, including approximately $14 million in prior period revenue. Cash, cash equivalents, and marketable securities totaled approximately $198 million as of March 31, 2026.

The preliminary financial information is based on a press release statement and may be adjusted pending completion of customary procedures. CareDx plans to provide further guidance during its first quarter 2026 earnings call on April 28, 2026.Despite not being profitable over the last twelve months, InvestingPro analysis indicates the company is undervalued at current levels and appears on the platform’s most undervalued stocks list. Analysts forecast earnings of $0.72 per share for fiscal 2026, suggesting a path to profitability. For investors seeking deeper insights, InvestingPro offers comprehensive analysis including Fair Value estimates and detailed Pro Research Reports for CareDx and over 1,400 US equities.

In other recent news, CareDx Inc. reported strong fourth-quarter results with a 25% increase in revenue, driven by a 17% growth in volume and a 5% rise in average selling prices. The company also issued 2026 revenue guidance, projecting growth between 11% and 17%, surpassing both BTIG and consensus estimates. Following these results, BTIG raised its price target for CareDx to $26, maintaining a Buy rating on the stock. Additionally, CareDx announced the launch of VANTx, a new cloud-based AI platform designed to assist in transplant program data analysis and clinical research. This platform aims to aid clinicians, transplant programs, and pharmaceutical partners in evaluating treatment trends and designing clinical trials. In executive news, Keith Kennedy, the current chief operating officer, will take on the additional role of chief financial officer. Kennedy, who has seven years of public company CFO experience, will continue overseeing the company’s finance organization alongside his COO duties. These developments reflect CareDx’s ongoing strategic initiatives and leadership adjustments.

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