A rare disease and oncology focused biopharmaceutical company navigating a sharp revenue contraction while managing significant cash burn and negative earnings typical of pre-commercial development stages.
If the company successfully secures new licensing agreements or achieves FDA approvals for its pipeline, the current low market capitalization could offer substantial upside potential; the existence of intangible assets valued at $9.8M suggests underlying intellectual property value that may not be fully reflected in book equity.
The stock faces extreme downside risk due to a five-year revenue collapse and accelerating losses from -$16.8M to -$53.4M, signaling an inability to sustain commercial operations without external funding; liquidity constraints are severe with cash on hand covering less than two months of current burn rates.
ProPhase Labs, Inc. is a specialized biopharmaceutical company focused on developing novel therapies for rare diseases and oncology, primarily serving markets in the United States through its pipeline of investigational medicines. The company operates with a lean R&D structure, evidenced by modest research and development expenditures relative to total assets, while managing significant cash outflows typical of early-stage drug development. Its financial profile reflects the high-risk nature of biotech firms, characterized by substantial negative net income driven by operating expenses and accumulated deficits rather than traditional commercial revenue streams.
The company's financial performance has deteriorated sharply, with revenue plummeting from $122.6M in 2022 to just $6.8M in the latest year and net losses widening to $53.4M. Operating expenses of $37.9M far exceeded revenue of $6.8M, resulting in a gross profit loss and a massive negative cash flow from operations that depleted liquidity by nearly $1M during the period.
The biotechnology sector is characterized by high barriers to entry and significant regulatory hurdles, where value is often derived from pipeline assets rather than immediate revenue. Companies in this space frequently experience volatile financial statements as they transition between research phases and commercialization milestones.
| Metric | 2022 | 2023 | 2024 |
|---|---|---|---|
| Revenue | $122.6M | $44.4M | $6.8M |
| Cost of Revenue | $52.0M | $28.1M | $6.9M |
| Gross Profit | $70.7M | $16.2M | $-150.0K |
| Operating Expenses | $47.1M | $37.9M | $38.5M |
| Operating Income | $23.6M | $-21.6M | $-38.6M |
| R&D | $652.0K | $1.4M | $594.0K |
| G&A | $34.4M | $34.5M | $37.9M |
| Stock-Based Comp | $4.0M | $3.5M | $3.6M |
| D&A | $4.7M | $6.3M | $6.2M |
| Depreciation | $2.3M | $3.1M | $4.2M |
| Amortization | $2.4M | $2.9M | $2.6M |
| Other OpEx | $12.0M | $1.9M | $0 |
| Non-Operating Income | $-687.0K | $-1.2M | $-3.7M |
| Interest Expense | $764.0K | $1.3M | — |
| Interest Income | $153.0K | $78.0K | $0 |
| Pre-Tax Income | $22.9M | $-22.8M | $-42.3M |
| Income Tax | $4.4M | $-6.0M | $7.2M |
| Continuing Ops | $18.5M | $-16.8M | $-49.5M |
| Discontinued Ops | $0 | $0 | $-3.8M |
| Net Income | $18.5M | $-16.8M | $-53.4M |
| Minority Interest | $0 | $0 | $0 |
| Net to Common | $18.5M | $-16.8M | $-53.4M |
| Metric | 2022 | 2023 | 2024 |
|---|---|---|---|
| Current Assets | $60.8M | $47.6M | $30.6M |
| Cash & Equivalents | $9.1M | $1.6M | $678.0K |
| Marketable Securities | $8.3M | $3.1M | $0 |
| Accounts Receivable | $37.1M | $36.3M | $20.1M |
| Inventory | $4.0M | $3.8M | $1.1M |
| Prepaid Expenses | $2.4M | $2.2M | $2.6M |
| Other Current Assets | $0 | $540.0K | $6.1M |
| Long-Term Assets | $26.8M | $44.3M | $32.6M |
| PP&E (Net) | $7.3M | — | — |
| Intangibles | $8.5M | $12.3M | $9.8M |
| Goodwill | $5.7M | $5.2M | $5.2M |
| Operating Leases | $4.1M | $4.6M | $4.1M |
| Other LT Assets | $1.3M | $22.2M | $13.5M |
| Total Assets | $87.6M | $91.9M | $63.2M |
| Current Liabilities | $16.1M | $20.9M | $32.1M |
| Accounts Payable | $5.9M | $9.4M | $13.7M |
| Current Leases | $301.0K | $953.0K | $1.2M |
| Deferred Revenue | — | — | $1.7M |
| Other Current Liab | $9.2M | $9.1M | $13.6M |
| Long-Term Liabilities | $7.9M | $21.7M | $23.7M |
| Long-Term Debt | — | $2.9M | — |
| LT Operating Leases | $4.3M | $4.2M | $3.8M |
| Other LT Liab | $2.6M | $13.4M | $19.2M |
| Total Liabilities | $24.0M | $42.5M | $55.8M |
| Shareholders' Equity | $63.6M | $49.4M | $7.4M |
| Paid-In Capital | $109.1M | $118.7M | $129.9M |
| Retained Earnings | $11.8M | $-5.0M | $-58.4M |
| AOCI | $757.0K | $-300.0K | $-198.0K |
| Total L&E | $87.6M | $91.9M | $63.2M |
| Metric | 2022 | 2023 | 2024 |
|---|---|---|---|
| Net Income (CFO) | $18.5M | $-16.8M | $-53.4M |
| Non-Cash Adjustments | $3.3M | $2.2M | $48.9M |
| Working Capital Changes | $6.8M | $3.2M | $-13.1M |
| Cash from Operations | $28.6M | $-11.3M | $-17.5M |
| Cash from Investing | $-2.1M | $-1.4M | $2.4M |
| Share Buybacks | $2.2M | $588.0K | $0 |
| Dividends Paid | $9.4M | $0 | — |
| Cash from Financing | $-26.0M | $5.8M | $14.2M |
| FX Effect | $0 | $0 | $0 |
| Net Change in Cash | $451.0K | $-7.0M | $-931.0K |
| Beginning Cash | $8.7M | $9.1M | $1.6M |
| Ending Cash | $9.1M | $2.1M | $678.0K |
Primary revenue generation through licensing deals and potential milestone payments from strategic partnerships, supported by internal R&D efforts targeting orphan diseases and cancer treatments.
Severe revenue decline from $122.6M in 2022 to $6.8M in 2024 indicates potential partnership failures or deal expirations; substantial cash burn with negative operating cash flow of $17.5M threatens liquidity given low current cash reserves; significant accumulated deficit of $58.4M suggests reliance on continuous capital raising.
Specialized expertise in rare disease indications with a differentiated pipeline that offers high-value targets for commercial partners; access to grant funding mechanisms common in the biotech sector to offset operational costs.
Not financial advice. All content is for informational purposes only. Data may contain errors. Consult a qualified financial advisor before making investment decisions.