(RTTNews) - ProPhase Labs, Inc. (PRPH), a next-generation biotech and consumer products company, Thursday announced two key initiatives to strengthen its financial position and generate significant cash flow.
The company is actively collaborating with Crown Medical Collections to recover over $150 million in unpaid COVID-19 testing receivables from more than 1,100 insurance companies.
Crown's legal strategy is targeting insurance companies for non-compliance with the CARES Act, which mandates reimbursement for all COVID-19 claims.
This initiative could result in $50 million net recovery, potentially doubling the company's market cap.
In addition, ProPhase is pursuing the potential sale of its genomics assets, including Nebula Genomics and DNA Complete, to unlock additional liquidity.
Nebula Genomics, a direct-to-consumer whole genome sequencing provider, has a growing customer base of over 65,000 sequenced genomes, contributing to the expanding genomics market.
ProPhase's CEO, Ted Karkus, will present further details on these efforts during the Virtual Non-Deal Roadshow on February 25, 2025.
These initiatives are expected to significantly improve ProPhase's financial outlook, with liquidity potentially beginning in mid-2025.
Currently, PRPH is trading at $0.72, up 26.96 percent on the Nasdaq.
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