ProPhase Labs Exceeding Initial Goals as Covid-19 Lab Testing Business Ramps up
February 01 2021 - 8:30AM
ProPhase Labs, Inc. (NASDAQ: PRPH), a diversified medical science
and technology company, announced today that it has surpassed its
initial testing goals and is successfully ramping up its COVID-19
testing business as planned. The Company’s Old Bridge, New Jersey
lab is currently processing tests at a rate in excess of 2,500
COVID-19 tests per day based on a 5-day per week average. To date,
the pre-tax net profit is significantly greater than $30 per test.
The Company’s Garden City, New York lab is now open and fully
operational and beginning to accept orders. The two labs combined
have the equipment and infrastructure necessary to provide capacity
of up to 60,000 tests per day.
ProPhase Labs purchased its first CLIA lab in
Old Bridge, New Jersey, in October 2020. The Company initially set
a goal of processing 1,000 COVID-19 tests per day by December 31,
2020. In early December, the Company increased this goal to 1,500
COVID-19 tests per day with a pre-tax net profit of at least $30
per test processed.
“I am pleased to announce that we have surpassed
all of our initial testing goals, including our profit margin
targets,” said Ted Karkus, CEO of ProPhase Labs. Mr. Karkus added:
“Our capital investments, coupled with the hiring of a terrific
team, has led to two highly efficient labs with the latest
state-of-the-art high-complexity molecular laboratory testing
equipment. This has enabled us to offer highly competitive pricing
to our customers, and some of the fastest turnaround reporting
times in the industry, while still generating over $30 net profit
per test processed. Our goal is to grow our testing revenues
quarter to quarter during 2021. If we are able to average 2,500
tests processed per five-day work week in Q1, and then grow that
volume to an average of 5,000 tests per five-day work week for the
rest of 2021, it would be feasible to realize approximately $100
million in testing gross revenues and approximately $35 million in
pre-tax net income, based on $30 net profit per test. And this does
not include the Company’s legacy manufacturing and dietary
supplement businesses, which also are growing.”
Mr. Karkus further explained: “At present, our
margins appear to be generating significantly greater than $30 net
profit per test. However, until we have more experience with
reimbursement rates, it will be difficult to estimate how much
higher the actual profit per test might be.”
The Company emphasized that the future testing
revenues and margins discussed herein cannot be assured and are
subject to numerous factors and risks outside of the Company’s
control.
ProPhase will host a shareholder conference call
on February 10, 2021 to review the performance of its laboratory
processing business, short- and long-term prospects for future
growth, and strategic direction.
ProPhase Labs Shareholder Conference
Call
Date: |
Wednesday, February 10, 2021 |
Time: |
11:00 a.m. Eastern time (8:00
a.m. Pacific time) |
Dial-in: |
1-877-407-0784 |
International Dial-in: |
1-201-689-8560 |
Passcode: |
13716077 |
Webcast: |
http://public.viavid.com/index.php?id=143390 |
A telephone replay will be available
approximately two hours after the call and will run through March
10, 2021 by dialing 1-844-512-2921 from the U.S., or 1-412-317-6671
from international locations, and entering replay pin number:
13716077.
The webcast will be available for replay for 60
days at http://public.viavid.com/index.php?id=143390 and on the
investor relations section of the Company's website at
www.ProPhaseLabs.com.
About ProPhase Labs
ProPhase Labs (NASDAQ: PRPH) is a diversified
medical science and technology company with deep experience with
OTC consumer healthcare products and dietary supplements. The
Company is engaged in the research, development, manufacture,
distribution, marketing and sale of OTC consumer healthcare
products and dietary supplements in the United States. This
includes the development and marketing of dietary supplements under
the TK Supplements® brand. The Company’s subsidiary, ProPhase
Diagnostics, Inc. (“ProPhase Diagnostics”), offers COVID-19 and
other Respiratory Pathogen Panel (RPP) Molecular tests. The
Company also continues to actively pursue strategic investments and
acquisition opportunities for other companies, technologies and
products. For more information visit us at
www.ProPhaseLabs.com.
Forward Looking Statements
Except for the historical information contained
herein, this document contains forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of
1995, including statements regarding our testing goals, and future
testing revenue and margins. Management believes that these
forward-looking statements are reasonable as and when made.
However, such forward-looking statements involve known and unknown
risks, uncertainties, and other factors that may cause actual
results to differ materially from those projected in the
forward-looking statements. These risks and uncertainties include
but are not limited to the scale, scope and duration of the
COVID-19 pandemic, our ability to attract and retain customer
accounts, consumer demand for our lab processing services, the
competitive environment, attracting and retaining qualified staff,
challenges relating to entering into new business lines, our
failure to obtain certain regulatory approvals, our ability to ramp
up our lab’s testing capacity and execute on our business plan, our
ability to obtain necessary equipment and raw materials, our
ability to execute our business plan in a cost–effective manner,
and the risk factors listed from time to time in our Annual Report
on Form 10-K and other SEC filings.
Investor ContactChris
TysonManaging DirectorMZ Group - MZ North
America949-491-8235PRPH@mzgroup.uswww.mzgroup.us
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