Download PDF

1. Company Snapshot

1.a. Company Description

ProPhase Labs, Inc.engages in the research, development, manufacture, distribution, marketing, and sale of over the counter (OTC) consumer healthcare products and dietary supplements in the United States.The company operates in two segments, Diagnostic Services and Consumer Products.


It offers a range of OTC dietary supplements, including Legendz XL for male sexual health; and Triple Edge XL, an energy and stamina booster.The company also provides contract manufacturing services, such as product development, pre-commercialization, production, warehousing, and distribution; SARS-CoV-2 (COVID-19) and COVID-19 viral mutation polymerase chain reaction tests through saliva and nasal swab methods; and other respiratory pathogen panel molecular testing services, as well as personal genomics products and services.It serves national chain drug, internet-based, and various regional retailers.


The company was formerly known as The Quigley Corporation.ProPhase Labs, Inc.was founded in 1989 and is headquartered in Garden City, New York.

Show Full description

1.b. Last Insights on PRPH

The recent 3 months performance of ProPhase Labs, Inc. was negatively impacted by the company's failure to capitalize on its strategic initiatives, despite announcing multiple significant potential liquidity events. The BE-Smart Esophageal Cancer Test Study's submission to the Journal of Clinical Gastrointestinal Hepatology was a positive development, but its impact was overshadowed by the company's inability to generate substantial revenue growth. Additionally, the company's decision to sell its wholly owned subsidiary, Nebula Genomics, and the Crown Medical Collections initiative to collect tens of millions of dollars in accounts receivable, while positive, did not materialize into tangible results.

1.c. Company Highlights

2. ProPhase Labs' Q3 2025 Earnings: A Deeper Dive into the Numbers and Strategic Initiatives

ProPhase Labs reported revenues of $1.4 million for Q3 2025, a significant decrease from $7.3 million in the same quarter last year, primarily due to the shutdown of their laboratory operations. The company's EPS came in at -$0.16, missing estimates of -$0.11. Gross margin was reported at 43.6%, down from 61.4% in Q3 2024. Operating expenses were reduced by 55% year-over-year, reflecting the company's efforts to streamline its operations.

Publication Date: Nov -29

📋 Highlights
  • Crown Medical Claims Potential:: $50M net estimated from $150M in uncollected COVID testing claims.
  • b Smart Esophageal Cancer Test Market:: $7–$14B target market with potential 10x valuation in 3–4 years.
  • Market Cap vs. Asset Disconnect:: $12M market cap vs. $10x+ expected growth in 18 months post-Crown Medical cash flow.
  • Reverse Stock Split Flexibility:: Shareholders urged to vote for proxy to enable Nasdaq compliance and strategic flexibility.
  • Share Buyback Plan:: CEO aims to repurchase 10–50% of shares if stock price is favorable post-Crown Medical collections.

Strategic Initiatives and Potential Growth Drivers

The company is focusing on several strategic initiatives, including the development of its b smart esophageal cancer test, a diagnostic test partnered with Mayo Clinic, which has a potential target market of $7-14 billion. According to Ted Karkus, "We've cleared the FDA hurdle, and we can move forward with the laboratory developed test." The company plans to fund the development of this test using cash flow from Crown Medical Collections.

Crown Medical Collections and Potential Cash Flow

Crown Medical Collections, a subsidiary of ProPhase Labs, is pursuing uncollected COVID testing claims from insurance companies, with estimated potential collections of at least $50 million net from $150 million in claims. This potential cash flow is expected to be a significant driver of the company's future growth and ability to fund its strategic initiatives.

Valuation and Potential Upside

With a current market cap of $12 million and 4.04 billion shares outstanding, the company's valuation metrics indicate a potentially undervalued stock. The P/S Ratio is 8.7, and the P/B Ratio is 1.26. Analysts estimate next year's revenue growth at 95.2%, suggesting potential upside. Ted Karkus believes the esophageal cancer test could be worth $1 billion in 3-4 years, which would put the stock price at around $20. With a potential reverse crypto treasury strategy and other initiatives in the works, the company may be poised for significant growth.

Shareholder Value and Voting Importance

Ted Karkus emphasized the importance of shareholders voting their shares, stating, "If you don't vote your shares, don't complain to me." The vote is crucial for the company's flexibility, including a potential reverse stock split to remain Nasdaq compliant. The company's goal is to do something accretive for shareholders, and Karkus is working on deals that could make all shareholders a lot of money.

3. NewsRoom

Card image cap

ProPhase Labs (NASDAQ:PRPH) versus Grifols (NASDAQ:GRFS) Head to Head Survey

Dec -02

Source: defenseworld.net

Card image cap

ProPhase Labs, Inc. (PRPH) Discusses Milestones in Cancer Diagnostics, Genomics Expansion, and COVID Accounts Receivable Collection Transcript

Dec -02

Source: seekingalpha.com

Card image cap

Join ProPhase Labs' Exclusive Live Investor Webinar and Q&A Session on December 1

Nov -26

Source: globenewswire.com

Card image cap

ProPhase Labs, Inc. (PRPH) Q3 2025 Earnings Call Transcript

Nov -19

Source: seekingalpha.com

Card image cap

ProPhase Labs Reported Results for the Third Quarter Ended September 30, 2025, and Will Hold a Virtual Conference Call Today at 2pm ET.

Nov -19

Source: globenewswire.com

Card image cap

ProPhase Labs, Inc. to Present Third Quarter 2025 Financial Results on November 19

Nov -18

Source: globenewswire.com

Card image cap

ProPhase Labs Urges Shareholders to Vote by November 23 on Proxy Proposals

Nov -17

Source: globenewswire.com

Card image cap

ProPhase Labs Announces Publication of BE-Smart Esophageal Cancer Study in the Official Journal of the American College of Gastroenterology

Oct -29

Source: globenewswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (9.05%)

6. Segments

Diagnostic Services

Expected Growth: 9.98%

ProPhase Labs' Diagnostic Services segment growth of 9.98% is driven by increasing demand for COVID-19 testing, expanded customer base, and strategic partnerships. Additionally, the company's focus on developing and commercializing innovative diagnostic products, such as its PCR-based COVID-19 test, has contributed to the segment's growth.

Consumer Products

Expected Growth: 7.88%

ProPhase Labs, Inc.'s 7.88% growth in Consumer Products is driven by increasing demand for dietary supplements, particularly cold and flu remedies, as well as the company's strategic expansion into e-commerce and online sales channels, which have improved product accessibility and convenience for consumers.

7. Detailed Products

Dietary Supplements

ProPhase Labs, Inc. offers a range of dietary supplements that promote overall health and wellness. These supplements are designed to support immune function, energy levels, and digestive health.

OTC Products

The company's OTC (over-the-counter) products include cold and flu remedies, as well as other health-related products. These products are designed to provide relief from common ailments.

Contract Manufacturing

ProPhase Labs, Inc. offers contract manufacturing services to other companies, providing customized manufacturing solutions for dietary supplements and OTC products.

Private Labeling

The company offers private labeling services, allowing other companies to create their own branded products using ProPhase Labs' formulations and manufacturing expertise.

8. ProPhase Labs, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for ProPhase Labs, Inc. is medium due to the availability of alternative products and services in the market.

Bargaining Power Of Customers

The bargaining power of customers for ProPhase Labs, Inc. is low due to the company's strong brand reputation and customer loyalty.

Bargaining Power Of Suppliers

The bargaining power of suppliers for ProPhase Labs, Inc. is medium due to the presence of multiple suppliers in the market.

Threat Of New Entrants

The threat of new entrants for ProPhase Labs, Inc. is high due to the low barriers to entry in the industry.

Intensity Of Rivalry

The intensity of rivalry for ProPhase Labs, Inc. is high due to the presence of multiple competitors in the market.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 20.90%
Debt Cost 3.95%
Equity Weight 79.10%
Equity Cost 3.11%
WACC 3.28%
Leverage 26.43%

11. Quality Control: ProPhase Labs, Inc. passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Pacira BioSciences

A-Score: 5.3/10

Value: 8.1

Growth: 4.6

Quality: 4.3

Yield: 0.0

Momentum: 9.5

Volatility: 5.0

1-Year Total Return ->

View Full Report
Stock-Card
Phibro Animal Health

A-Score: 4.9/10

Value: 2.7

Growth: 5.2

Quality: 4.2

Yield: 4.0

Momentum: 9.5

Volatility: 4.0

1-Year Total Return ->

View Full Report
Stock-Card
Radius Health

A-Score: 4.9/10

Value: 6.8

Growth: 3.4

Quality: 1.4

Yield: 5.0

Momentum: 9.0

Volatility: 3.7

1-Year Total Return ->

View Full Report
Stock-Card
OptiNose

A-Score: 4.4/10

Value: 7.4

Growth: 4.4

Quality: 5.1

Yield: 0.0

Momentum: 5.0

Volatility: 4.7

1-Year Total Return ->

View Full Report
Stock-Card
ProPhase Labs

A-Score: 3.3/10

Value: 7.6

Growth: 0.3

Quality: 3.8

Yield: 3.0

Momentum: 5.0

Volatility: 0.3

1-Year Total Return ->

View Full Report
Stock-Card
SCYNEXIS

A-Score: 3.2/10

Value: 7.8

Growth: 5.4

Quality: 4.6

Yield: 0.0

Momentum: 0.5

Volatility: 1.0

1-Year Total Return ->

View Full Report

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

0.14$

Current Price

0.14$

Potential

-0.00%

Expected Cash-Flows