ProPhase Labs Announces Update On Pharmaloz Manufacturing Progress; Says PMI's 12-Month Forward Looking Revenue Run Rate With One Production Line Will Be ~$14M-16M And ~$5M In Pre-Tax Net Profits
PMI Revenues and Earnings Projected to Grow Significantly in the Second Half of 2024 and Full Year 2025.
New Strategic Initiatives for PMI Create Significant Opportunities for Liquidity and Value Creation
Garden City, NY, July 11, 2024 (GLOBE NEWSWIRE) -- ProPhase Labs, Inc. (NASDAQ:PRPH) ("ProPhase" or the "Company"), a next-generation biotech, genomics, and diagnostics company, today reported that Pharmaloz Manufacturing, Inc. ("PMI"), its wholly-owned subsidiary, is projecting significant revenues and earnings growth for the second half of 2024 and the entire year of 2025. The Company believes that the strategic enhancements to PMI's primary production line have generated increased capacity, revenue opportunities, efficiency as well as diversified and increased product offerings. These enhancements, combined with more favorable pricing, have led to a projected increase in PMI's revenues, margins and profitability going forward. Therefore, ProPhase believes there are several strategic options for PMI in 2024 and 2025 that may provide significant liquidity and value creation for the Company, though there can be no assurance that any transaction will occur. The Company has engaged ThinkEquity as an advisor to pursue strategic alternatives for PMI.
Based on these improvements and the expectation of continued increasing customer demand, the Company believes that beginning in the current Q3 2024, PMI's 12-month forward looking revenue run rate with one production line will be approximately $14-16 million and approximately $5 million in pre-tax net profits. These results are anticipated solely through operation of PMI's first enhanced manufacturing line. To place this in perspective, PMI generated approximately $9.3 million in revenues and reported net losses from operations in calendar year 2023.