Genomics testing company ProPhase Labs reports 211% sales gain
The Garden City, NY-based testing firm reported revenues of $47.5 million for the first quarter of its fiscal 2022, up 211% from the same period a year previously. The company had brought in $15.3 million for the quarter ending Marcy 31, 2021.
In addition, net income increased by more than ten time, to $12.5 million, up from $1.1 million on a year over year basis.
Ted Karkus, PhoPhase Labs CEO, said the company is expanding the availability of its genomic tests in food drug mass retail channel as well as direct to consumers. A big selling point, he said, is that ProPhase keeps the testing in house and doesn’t send consumers’s samples to offshore labs.
“It is the future of precision medicine. It is the future of healthcare. At the heart of it is a genetics tests. We want to be the leader in this country in providing genetic testing, both whole genome sequencing and a whole range of genetic tests. Not only direct-to-consumer, but then ultimately to physicians,” Karkus said.
Results looked good even compared to strong 2021 quarter
Karkus emphasized that the company’s stellar results were achieved in comparison to a period a year previously in which demand for COVID-19 tests was already going through the roof. Part of that was a result of the company’s subscription testing model, which is very popular with consumers and which the company can deliver at a high margin, he said. Karkus made his remarks as part of an earnings call with stock analysts. A transcript of the call was posted on the site seekingalpha.com
ProPhase also said it is in the early stages of developing a broad spectrum anti-viral OTC dietary supplement as well as building a pharmaceutical division that would license and develop early stage drugs.
The company’s stock price rose about 10% after the earnings were made public on Friday. ProPhase stock now trades for about $7.39 a share, still well off its recent high of $16 a share in early 2021.