ProPhase Labs announces significant progress at PMI

ProPhase Labs announces significant progress at Pharmaloz Manufacturing, PMI, its wholly owned subsidiary. With the implementation of recent price increases across its entire product line, PMI has transitioned to significant projected 2024 profitability starting with Q1 2024. In view of favorable current market conditions and demand for PMI’s services and products, PMI is optimistic that it will experience continued favorable pricing for the near to intermediate term. PMI’s operational enhancements have helped drive its current success. PMI recently acquired cutting-edge automation equipment and, with other operating efficiencies, is set to escalate plant capacity by over 50%, raising annual production capability from below $10 million to over $15 million. PMI is not stopping there. The installation of a second lozenge production line and further automation in Q2 2024 are projected to approximately double capacity to a $30-$35 million potential run-rate. Additional equipment set to arrive by Q4 2024 could increase annual production capabilities to a range of $60-$80 million, based on a 3 1/2 day workweek. Ted Karkus, CEO of ProPhase Labs, reflects on this transformative journey: “What began as a modest manufacturing unit solely dedicated to our Cold-EEZE contract manufacturing has evolved into a top-tier facility producing premium lozenges for global brands. Our roadmap envisages scaling this business in the next 18-24 months from under $10 million in annual revenue to a potential $80-$100 million production capacity with healthy net profit margins. With prospective global partnerships, we’re collaborating with a leading engineering and consulting firm to potentially enhance production capacity to $100-$200 million in annual revenues by the end of 2025. Of course, there can be no assurance that we will in fact be able to win new business at these levels, or that such new business will deliver the projected gross margins, but that is the goal.”