CareDx, Inc 8-K

Summary

Agreement to sell the Lab Products business and preliminary Q1 2026 results. CareDx agreed to sell its Lab Products business—IVD kits for transplant HLA typing and post-transplant monitoring—to Eurobio Scientific for $170M in cash, while retaining exclusive perpetual North American distribution rights for post-transplant monitoring tests. The sale is intended to sharpen CareDx’s focus on Testing Services and Patient and Digital Solutions; in Q1, those segments grew 48% and 33% Y/Y, respectively.

Key Figures

• Average revenue per test was ≈$1,660, including ≈$14M in prior-period revenue. Cash, cash equivalents and marketable securities totaled ≈$198M as of 3/31/2026.
• The business being sold includes PCR kits for deceased-donor HLA typing, NGS kits for transplant-recipient HLA typing, and NGS monitoring assays for solid-organ and stem-cell transplant recipients outside North America. The $170M cash consideration is payable at closing and subject to customary adjustments.
• Closing is anticipated by the end of Q3 2026 and requires Swedish regulatory review. At closing, CareDx will provide transition services for at least six months at Eurobio’s expense.
• CareDx retains the exclusive perpetual right to distribute post-transplant monitoring IVD tests in North America, including AlloSeq cfDNA. Eurobio may continue serving its existing customers with its current products and, for three years after closing, may sell CareDx’s current chimerism assay only to CareDx’s existing North American customers.
• CareDx expects to prioritize proceeds for investments supporting its long-term growth strategy, including potential acquisitions, and may also return capital to shareholders.

Guidance

Further guidance expected on the 4/28/2026 earnings call.

Investor Takeaways

• Watch for Swedish regulatory approval and completion by the end of Q3 2026; closing would deliver the cash proceeds and put the business transition into effect.
• Track Testing Services revenue and testing volume in upcoming quarters; continued Y/Y growth in both would support CareDx’s focus on its core testing business.