ProPhase Labs announces growth expectations for Pharmaloz

ProPhase Labs unveiled the substantial expansion strategy for its wholly-owned subsidiary, Pharmaloz Manufacturing. The 2024 comprehensive plan aims to increase current lozenge production capacity by 400 % or more and thereby capture more of the expected increase in global demand for high-quality lozenges. Highlights of the Growth Plan: Financial Goals: The company goal is to ramp up to a run-rate of $60-$80 million in annualized revenues by the conclusion of 2024. This could translate into $12-$20 million in annualized pre-tax net profits. Expanding the work week could further expand capacity and margins. Global Collaborations: Over the past year, Pharmaloz has been working with several world-renowned lozenge brands to finalize formulations. The possible demand generated from these collaborations has the potential to help us meet or even surpass our ambitious new targets. Regulatory Milestones: Pharmaloz has successfully cleared its extensive multi-year FDA inspection. This pivotal accomplishment satisfies a critical requirement for onboarding some of the largest global prospects. Production for such prospective customers could begin as soon as early 2024. Operational Excellence: Year-to-date, the company has witnessed a 100% year-over-year growth in production in its non-Cold-EEZE contract manufacturing division and is currently capacity constrained. Capacity Enhancements: The first batch of a series of new, state-of-the-art automation equipment is scheduled for delivery and installation next month. This high-tech equipment is expected to boost existing capacity of the first lozenge line by close to 50% before the end of 2023. Future Outlook: Utilizing the current three-and-a-half workday schedule, Pharmaloz is projected to achieve a run-rate of $15 million in annualized revenues and a run-rate of $3+ million in gross profit during Q1 2024. Second Line of Production: Equipment for a second lozenge manufacturing line has already been ordered, with delivery and installation planned for Q2 2024. Strategic Planning: In anticipation of further demand, Phamaloz has engaged one of the nation’s top engineering firms to draft a three-year master plan, that includes planning for a fourfold increase in capacity by December 2024, with possible additional scaling from there.