Third Stream Research Issues Update Report on ProPhase Labs
ProPhase is amid a dynamic transition from an earnings story based on COVID-19 testing into a diversified biopharma company with outstanding biotech, genomics and diagnostic assets
NEW YORK, NY, May 30, 2023 – Third Stream Research issued an Update Report on ProPhase Labs, Inc. (NASDAQ: PRPH), with a Strong Buy recommendation for long-term market outperformance.
The company’s achievements have been severely discounted; investors credit the earnings bonanza more as serendipity than the result of agile design and execution. Yet the acquisitions and other initiatives taken by ProPhase concurrent with its financial windfall and bear market in small biotech stocks reinforce our view of management’s ability to execute on an ambitious new phase of growth.
We estimate a minimum value for the diagnostics, manufacturing, and supplements subsidiaries at ~$100 million, or ~$6 per share, accounting for the 12-month business outlook, value of equipment, customers, suppliers, and 2023 capital expansions in process.
This attributes at most a ~$60 million valuation to: A) ProPhase Biopharma, which is targeting multi-billion dollar markets globally with a pipeline led by i) a potentially breakthrough esophageal-cancer test on track to be commercialized by mid-2024 and ii) Linebacker-1, a cancer co-therapy/individual drug with strong pre-clinical results, and B) a profitable Nebula Genomics, the lowest-cost direct-to-consumer US provider of whole genome sequencing with nearly 100% revenue growth.
We believe that greater understanding of ProPhase’s resolute transition this year, coupled with a wider recognition of the values in the genomics, biopharma, diagnostics, and manufacturing subsidiaries, will attract new and larger investors.
ProPhase has reoriented itself around a foundation of assets with multiple avenues for growth, with the potential to be worth a significant multiple (4X or higher) of its current market valuation in the next two years.
Our latest update on PRPH can be seen here.
This is an independent report. Third Stream Research received no compensation from ProPhase Labs or any of its affiliates. For more information, please refer to disclosures at the end of the report.
About Third Stream Research
Third Stream Research covers the new generation of emerging growth companies that are successfully leveraging digital transformation. We provide both independent research and sponsored research and advisory services to help companies build recognition of intrinsic value in the Wall Street community. Our market intelligence is built on the data and information we accumulate on the 1,000+ companies in our scope, but the centrality of intangible factors and qualitative analysis defines our process. Joshua Levine, principal at Third Stream Research, is an accomplished investment analyst and storyteller with more than 30 years of experience in the financial markets covering technology-intensive companies and industries. Most recently he was Senior Research Analyst of Digital Economics for 451 Research, a division of S&P Global Market Intelligence, where he established the research channel focusing on the intersection of macroeconomic and IT industry trends.
Contact:
Joshua Z. Levine, Principal
Tel: (212) 979-2316
Email: joshua.levine@thirdsr.com
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