Benzinga | Feb 1, 2021 08:40AM EST

ProPhase Labs Says Old Bridge, New Jersey Lab Is Processing COVID-19 Tests At A Rate In Excess Of 2,500 Tests Per Day

Company to Host Business Update Shareholder's Conference Call on February 10, 2021 at 11:00 a.m. Eastern Time

GARDEN CITY, NY, Feb. 01, 2021 (GLOBE NEWSWIRE) -- ProPhase Labs, Inc. (NASDAQ:PRPH), a diversifiedCompany to Host Business Update Shareholder's Conference Call on February 10, 2021 at 11:00 a.m. Eastern Time

GARDEN CITY, NY, Feb. 01, 2021 (GLOBE NEWSWIRE) -- 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, 2021Time: 11:00 a.m. Eastern time (8:00 a.m. Pacific time)Dial-in: 1-877-407-0784International Dial-in: 1-201-689-8560Passcode: 13716077Webcast: http://public.viavid.com/index.php?id=143390