ProPhase Labs Inc. (PRPH) stock prices were down by a marginal 0.46% as of the market close on August 13th, 2021. This brought the price per share down to USD$6.46 at the end of the trading day.
PRPH Stock’s Acquisitions
The second quarter of fiscal 2021 saw PRPH stock announce the acquisition of Nebula Genomics, a privately-owned personalized medicine genomics company. The company conducted the transaction through its wholly-owned subsidiary ProPhase Precision Medicine. The transaction is expected to see the company integrate Nebula’s whole genome sequencing services with its clinical diagnostic testing services. The testing services are conducted at the company’s CLIA-certified labs. Together, the joint solution is expected to be able to offer users a more complete genome mapping alternative to those currently available on the market.
PRPH Stock’s Subsidiaries
PRPH stock also announces the formation of two wholly-owned subsidiaries over the quarter. ProPhase Precision Medicine will focus on genomics testing technologies, while ProPhase Global Healthcare will seek to expand the company’s Covid-19 testing globally. The company was also awarded contracts with Dutchess County, New York, and Township of Oyster Bay. These contracts set PRPH stock up to provide reliable Covid-19 testing to almost 600,000 New York residents. ProPhase Labs expects to play a critical role in the return of the economy and normal functioning.
Strong Financials
Net revenue for the second quarter of fiscal 2021 came in at USD$9.1 million, up from the USD$3.6 million reported in the prior-year quarter. The year-over-year difference was largely driven by a USD$7.5 million increase related to the company’s new diagnostic services business. This difference was partially offset by a USD$2 million reductions in customer orders from its consumer products business. This reduction was largely attributable to timing and third-party demand.
Solid Liquidity Position
The company reported a solid liquidity position as of June 30th, 2021, with USD$35.8 million in cash and cash equivalents, and marketable debt securities. This is comparable to the USD$8.5 million reported as of December 31st, 2020. The sharp increase largely stems from the receipt of aggregate net proceeds in the amount of USD$40.6 million, from the company’s offerings.
Future Outlook for PRPH Stock
PRPH stock reported a strong quarter, the success of which it hopes to carry through to the next few quarters. The company is keen to continue its trajectory of success as it takes steps to usher in unprecedented growth. Investors are hopeful for significant and sustained increases in shareholder value.
