PRPH News & Events

ProPhase Labs announced that it has initiated a potential sale or strategic partnership process for BE-Smart, its clinically validated esophageal cancer risk stratification test, and is advancing its Crown Medical Collections initiative. "We believe BE-Smart represents a differentiated, clinically validated diagnostic that is ready for commercial deployment as an LDT," said Ted Karkus, Chairman and Chief Executive Officer of ProPhase Labs. "By pursuing a sale or strategic partnership, we aim to unlock immediate liquidity, significantly reduce internal development and commercialization costs, and potentially participate in long-term royalty or revenue-sharing streams as adoption expands through a partner's established distribution network."

ProPhase Labs provided an operational update on the progress of its Crown Medical Collections initiative relating to legacy COVID-19 testing receivables held by its laboratory subsidiaries currently in Chapter 11 proceedings. According to Crown Medical: "Crown Medical Collections, in its capacity as special counsel for the collection of accounts receivable, is actively engaged in settlement negotiations with more than 250 insurance payors relating to outstanding ProPhase receivables. Approximately 50 of these matters are presently in advanced settlement posture, with anticipated resolutions expected to close within the next 30 to 90 days. These recoveries are expected to generate substantial proceeds and materially enhance near-term liquidity in support of ongoing operations and an orderly court-supervised restructuring process."

ProPhase Labs trading halted, news pending