In This Article:
Projections for Pharmaloz Manufacturing: Approximately $16-17 Million in Revenue, $6-7 Million in Pre-Tax Earnings for 2025
Strategic Partnership Discussions Begin for BE-Smart Esophageal Cancer Test
GARDEN CITY, NY, Oct. 17, 2024 (GLOBE NEWSWIRE) -- ProPhase Labs, Inc. (NASDAQ: PRPH) (the “Company” or “ProPhase”), a next generation biotech, genomics, and diagnostics company, today announced significant progress across several key projects.
Pharmaloz Manufacturing Inc. (PMI):
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In Q3, the Company engaged ThinkEquity as an advisor to pursue strategic alternatives for PMI. ThinkEquity has now identified more than 70 potential acquirers for PMI, with a goal of negotiating and finalizing terms and closing in Q1 2025.
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PMI production is fully booked through Q1 2025, with expected 2025 revenue of approximately $16-17 million and pre-tax earnings of approximately $6-7 million.
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PMI begins production for a new non-seasonal client in January 2025, securing year-round business.
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PMI is in final stages of discussion with a global lozenge brand on a multi-year contract, which if consummated would include a substantial upfront payment to secure new production capacity and further strengthen PMI’s valuation in any potential sale.
BE-Smart Esophageal Cancer Test:
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Strategic discussions initiated with multi-billion dollar cancer diagnostic companies in coordination with Forward Healthcare Consultants (“FHC”). FHC previously served as leaders for companies such as Eurofins, Guardant Health, Inivata, and Natera. The advisors at FHC have helped their former companies gain market access to achieve market capitalization in the billions of dollars.
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A multi-phase commercialization plan has been completed, with a comprehensive report ready for potential partners.
Liquidity Events and Financial Outlook:
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The sale of PMI is targeted for early 2025 with a projected value exceeding $40 million.
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A partnership for our BE-Smart Esophageal Cancer Test could yield a potential upfront payment to us of $30-50 million, with additional milestones and long-term royalty payments upon approval and commercialization.
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Receivables collection efforts are anticipated to generate $20-25 million over the next six months.
Updates on the DNA Complete and Equivir product launches will be shared in a forthcoming press release.
About ProPhase Labs
ProPhase Labs Inc. (Nasdaq: PRPH) (“ProPhase”) is a next-generation biotech, genomics and diagnostics company. Our goal is to create a healthier world with bold action and the power of insight. We’re revolutionizing healthcare with industry-leading Whole Genome Sequencing solutions, while developing potential game changer diagnostics and therapeutics in the fight against cancer. This includes a potentially life-saving cancer test focused on early detection of esophageal cancer and potential breakthrough cancer therapeutics with novel mechanisms of action. Our world-class CLIA labs and cutting-edge diagnostic technology provide wellness solutions for healthcare providers and consumers. We develop, manufacture, and commercialize health and wellness solutions to enable people to live their best lives. We are committed to executional excellence, smart diversification, and a synergistic, omni-channel approach. ProPhase Labs’ valuable subsidiaries, their synergies, and significant growth underscore our multi-billion-dollar potential.