ProPhase Labs Inc (NASDAQ: PRPH) stock traded at $6.40 on June 11, 2021, on low volumes.
The stock gained 12% in the past week and is expected to reach $8.12 and higher. Its downside is limited at $4.80.
Creates two subsidiaries
ProPhase Labs creates two new subsidiaries – ProPhase Global Healthcare, Inc and ProPhase Precision Medicine, Inc. The news acts as a catalyst for a further up move of the Prophase Labs stock.
ProPhase Global Healthcare, Inc will concentrate on expanding its SARS-CoV-2 testing in other nations’ world over for additional opportunities.
ProPhase Precision Medicine, Inc. will concentrate on genomics testing. It will also focus on acquiring prevailing technologies and businesses for WGS (whole-genome sequencing).
WGS is used to analyze entire genomes like chromosomes and genes in the DNA. Healthcare professionals can use the data gathered from genomics testing to detect inherited disorders, forecast disease risk, characterize genetic mutations like those promoting cancer progression and predict drug response.
WGS costs are dropped significantly in recent years. It helped to provide new technologies for detailed testing, diagnosis, and forecast therapeutics treatments viability.
ProPhase Labs’s CEO, Ted Karkus, said WGS is rapidly becoming an essential component in the healthcare industry. Healthcare providers can test every genome’s base.
Ted further said ProPhase Labs formed ProPhase Precision Medicine to increase its share in the multi-billion genomic diagnostics market by focusing on new opportunities.
Ted also said the company formed ProPhase Global Healthcare to develop COVID-19 testing facilities worldwide and carry out healthcare-associated initiatives.
The demand for testing increased significantly because of the COVID-19 pandemic worldwide. ProPhase Labs would use its efficiencies and knowledge to improve its market share in the testing markets worldwide.
ProPhase Labs explores new opportunities outside the US because it continues to clinch new laboratories.
ProPhase Diagnostics develops antibody and antigen tests in coordination with scientists to expand its covid testing. It also concentrates on taking over US-based labs that offer oncology, urine, blood, toxicology, and pathology testing.