Earnings call transcript Q2 2023

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Operator

Good day, and welcome to the ProPhase Labs Second Quarter 2023 Financial Results and Corporate Update. All participants’ will be in a listen-only mode. [Operator Instructions] After today's presentation, there will be an opportunity to ask questions. [Operator Instructions] Please note this event is being recorded.

I would now like to turn the call over to Ted Karkus, CEO and Chairman of ProPhase Labs. sir. ahead, go Please

Ted Karkus

an much, read our you it. Look, second a to really you've also to very release that our us morning. presume press this I'd for release. today talk I explained I but for quarter want lot, read lot and you in all press to thank don't joining like awful the Thank all conference going call. I'm

would like said the I Having before, forward-looking company's the start let remind reading by to safe that me language. of you statement. harbor

statements this our and will During we make presentation, assumptions. plans, forward-looking initiatives statements, and including regarding objectives strategies, underlying

statements we that While as and are these when made. forward-looking believe reasonable

and differ based involve maintain uncertainties expectations into that and the are limited general and that include, in risks but our for relating statements are listed could approval, our from filings. regulatory with on and These products results economic our lines, business obtain challenges new materially. time-to-time ability filings entering to not consumer the conditions, risks competitive uncertainties risk Forward-looking to growing factors SEC services to, to the necessary demand environment and and cause actual

Reconciliation measures included comparable present and on of will adjusted prior this release SEC the to the This call our these call, furnished available to such earnings GAAP as measures non-GAAP in financial non-GAAP website. are EBITDA. most measures to the

of a with outs And like couple the shout beginning always give to the that, at of call. I

currently about a a non-deal show investor We virtual side. Renmark them road all, retail once does We're presentation. do of job great the on First month. or a doing

going with be don't company. nonpublic I I provide update about that about to call So any the this shareholders ever careful have on information. that. material what's very want on an

the company, shareholders, the am how book. in working to largest for our the the company. have shareholders. build the decade. of am had we're just myself. don't But to more thinking. team this better you for a want to for and I'm company. I'm so do here about really open in our I I what on this for doing I management really than understand and perspective But a I give history to all give in I overviews I success do an continue I shareholder do value

team amount building today, our over company. bit value in incredibly Even honestly, the of going Really, where stock out the years, decade management paying significant up dividends. the has last still in stock multiples significant while over our last a been a now back successful little we're few

first Anybody years, So been the been more anybody resulted us, still and that's with last three who's of been have returns been over the phenomenal. last four phenomenal. XX-years, us all, returns have with over even the or

where really right greater we've than my in past. now at for to future we're going is a believe anything and accomplished the point I what Interestingly, the time expectations be significantly in

And in we're investment raising absolute very a job years from have assets of acquisitions, those us now and They some job I'm only great couple which opportunities made. that couple that years, the number probably we working ThinkEquity We hundred talking developing be shortly. support a best of capital analysts showing cherry the but picked have couple a of over going we for we that the that also to have We we ago. we're us a did with. last follow and us closely Renmark, not are done in targets, reviewed about bankers of acquisitions a of phenomenal pick. also

Screen Joshua, covering Equity analyst phenomenal Research side been following and of then and recently also does Search of Livina, a has job Wainwright us Diamond H.C. job Research the also a also great them. on

also and can So the their move if as you we updates analysts follow want forward. our you to company, follow

that's a everybody the but want be the read I So same release on again, to background. really really want to press don't page. I little

So to you understand what if you're going to be our in an expect? investor company,

release, brand we in then and many long-term when As was sold turned the From we be knew COVID to that Cold-EEZE we into ago. the COVID press years around pivoted We going testing. pivoted not proposition. testing, I it mentioned that into a

We joke. built only of business that. However, $XXX in get we worth million a It's of $X.X business probably $XXX,XXX. to a running small decided That's into bought million. And the we late for lab sort out XXXX. the

in quite ago. every years renowned I PhD we to country. a that single predispositions frankly would the XX-years. research they're bring we, five two quarter world the know XXXX, up the had of first all person ago. his literally had is for with genomics day, because would similar labs of XX% and country COVID, but tested of tested, He's a incredibly be when Genomics. the He a be is into George now going course, And the genetically vision on students of in of founded genetic in working one to in were baby the that vision last been predispositions. potentially business Church XX your outperformed born first the what genetic the reason every in we years by it's with quarter, right anything The George and not having Nebula was Nebula we're do Genomics to about

opportunity And an first in I first the labs in three in we we first over and But that over saw into remember a knowing longer the we about the of the testing, we we And bit I'm the up testing The the generated the going more. after COVID two outperformed quarter, is reason don't very were million but over bring what's to the to yet year, the get XX% first COVID business, we reason not testing that months generated. no years, it eerily COVID what lab revenues. anything and we're I But company. into bring because a $XXX because business similar little got business. that up

we're place is just the out exact same Genomics. We interesting built what's now this Nebula in laboratory. state-of-the-art with So

We not does we at fantastic for COVID lab sequencing world-class high-complexity this only testing course, cost genetic And whole have out country. have literally now laboratory lab. of molecular testing, So respiratory. than just clinical doing lower a we provide and genome in a built that a we state-of-the-art anybody the

to is with we're place So was that up with for were now the just imagine, thought COVID in years we months ago. ended testing same or year, that The everybody two Nebula a going X.X six years. Genomics it last COVID for lasting difference

is another And not on I'm testing, the leading lab seriously, already. now they get COVID way, company. some on best literally the inning testing we're great, focus getting we're it. were. not the of But round not If the like something into by with people genetic around, company coming we're first my there focusing on COVID taking but point it is in the Now testing, they're we the the and aren't

out help And that Now in that instead of lab great getting then got we had as people employees, I on the and hired the weeding were weaker business, into they business, employees. experience, but a three great bunch better a we you of the initially. we employees business hiring experience no build not I to where have years resumes lab started first when where with worked understand, of

lab in team a up against the that put any I We team here have country. would

team. that don't inspectors much And fabulously from compliments to it I regarding allowed our had about our And but you we the can't we inspection. well. just I it, really an went know lab I'm And tell got talk

lab, this what now I world-class leader genomics And so a in on think focusing lab a world-class team we're the space. where is essentially building a is

So sort leader we're also of And and more a the sequencing the been in the a to whole consumers. that's maybe businesses. really focus, we're of direct space leader in providing importantly, genome sequencing selling to now

traveling the validations sense want that we And just to interesting. this me. just deja lab. were so the is do that son We're were God, when and is just we're country of in built looking with companies and literally of really literally it who's inquiries opportunities. together the to it's in my we were were getting of And two do exploring ProPhase the starting started "Oh sense the like, the lab business. we're and And And us of XXXX, lab. vu, got Jason, days types the he a about the talking getting, the back last testing levels COVID We're we with decided My to business our in President literally now. we we from business Diagnostics just at similar quality that finishing interest the we eerily

on other not you're if to you call we which about role mutations, predisposed going research if in know, of the is who We're of decades, probably a a the business. this towards do the All medicine. growth huge is come. The again, direction that's And for you've this genomics most is first personalized industry those years, you and for difference thing, at to be when you that we genetic precision point that to risk you the high reports scores get going plays how this don't medical the a diseases business are you been tells and physician about provide to at what makeup calls, your about studying It's my you that medicine. personalized all polygenic diseases, tells you're your in tested, risk gene risk of. in

risk treat data need differently this the research, a makeup, of to literally disease, in you sequencing work your research importantly, if get starting That drugs whole a starts then preventative know, on your do the That things And knowing depending you it? what though, with you And on Turns makeup. that's we to high genome in hopefully, all dangerous of And in test. this getting prevent you you're order at do data. from do is Maybe do that more disease. how you just if disease, out, different you'll genetic best. form people, field. comes genetic

we So see interesting do not States. opportunities what's only in the is United

seeing We in other also countries. are opportunities

we just to we the other United So versus how in want countries decide focus our to on much on much just have we business focus the to States. how want

getting a what XXX% business, could obviously So business. and business explosive we're we're direct-to-consumer is direct-to-consumer the growing growing just we We're be in growing. But in started really XXX% have And direct-to-consumer year-over-year. over honestly, year-over-year. the

down, on consumer helps we're And in our we store risk a as as week and come making updates on money prices because the even scores provide that twice business selling the down, we library, only where prices subscribers that provide high all subscription of are polygenic for going the come of, the more, disease which and the interesting of related your is on the margins stuff, it very risk It's our and very, to you're gene subscription. really mutation. the around love clinical research some world, profit us

BXB model, is see, the volume So that's a that volume But that potential in we and we the enormous. see business great model itself. of the

And spoiled whole out so less. lab. its whereas the testing because on we we machine state-of-the-art were genome you am built one quite do with significantly is when tests testing and were the COVID in amount of can by I what's interesting, sequencing COVID But large, doing spoiled

get the lab. we revenues So for volumes and us more to buying to potentially means equipment the of kinds want of larger do building that out generate kind to a

we the that would reason demand potential only significant. we're The is that because seeing is awfully do

by capacity But right a long want to is going will testing business, customers in have of used DXC want Garden good we the of that expand, our an growing. and because won't see is that term, up be do thing enormous like BXB current lab have if going to amount success that COVID for and to substantial to is we make to term. in that success City, we now, So short we the business most I have money, a continue can which the we're in just our

to happy people recent Genomics think, accounts the in That's about bit want release. about have gave in it. background. of in want our Q&A, me to I talk the I'm if a to lot a I more asked touch little press receivable. So about you I Nebula quarters more, just ask also

want So that. to I clarify just

So there's no confusion.

bit concerned least accounts the about We our are not receivable.

we had receivable. million year-end, asked accounts somebody approximately when So of $XX

June, the leverage receivable. $XX had end of we we'll As million in of $XX accounts million,

million don't like, that. accounts understand everyone you my collected a that What $XX god, of what's in So was wrong we $XX million already your "Oh with at is year-end, receivable of accounts receivable.

So it's not left. substantial a that's amount

XXXX, we're talking roughly million. $XX million $XXX from COVID we're about That's talking business. So about

million $XX collect. have We left to

don't why understand And so you it. we collect

accounts with quality First with of receivable, payers all, insurance companies. it's highest the

with not collecting issue we're worried So data. really patient about the collecting was the

you two we unlike we if collect number So had what had a goes for specimen, that doctor to if a we We patient the test till specimens. that sits and minutes we the that doesn't you see the years, get testing And license don't million with patient million understand, collecting even collect do get information. get times, over receptionist and with card it COVID is, driver's check did that COVID data. office means everything XX know were And into did couldn't X the we the don't the and to out. to checks everything out, when insurance I doctor's you X exact that's

specimen collection basically was people our in a streets of Our part randomly business. tents walking setting That he up. And partners up just York were on big City. New had

ended had and when anybody last you have be time. from who had HRSA didn't people to want ended, just all HRSA And that tested. year. reimburse. would also You at the That was insurance, government still that the HRSA funded

So information with it collecting their on wouldn't we time. still just they now give takes them. information. wouldn't correct would And insurance their have all them, test sometimes They we're that

But have have to you by go one, claims. to single got one those through of understand to every one we

So through of and one to thousands roughly tests, have of each go even $XX individually. about tens we're talking on million we

a ago, country had collections, hired about on this claim. are in who they people another mentioned working I made progress going single in a months of enormous company experts. we through So XX this every literally couple and they've

first we that just created wanted that an the we doing business as issue. COVID accounts receivable quarter that receivable So we're business, doing is in some year. the say replaced collected receivable and I new and not Obviously, accounts our last on accounts to were

We're accounts about issue. progress an worried not in receivable. of it. So making lot really a the I'm And not

at While we end did year, of last small the write-off a write-off. a

I business. think not $X million its million a it's $XXX $X million or

I covering I get there. before even a questions, lot a obviously, talked Pharmaloz. we're lot So pretty Separately, set without to

didn't Manufacturing don't for it a the valuable into selling enormously in Walmart, empty brands a facility, wanted manufacturing if on sold is I is Cold-EEZE with one The lozenge a place enormous. or now the important obviously, brand, That business. to a potential to of even that brand lot want Pharmaloz up have facility What's put previous here selling, interesting of they know, critically Capacity an wouldn't you space. a I the if do largest I and becoming lozenge world fight. experience and acquire have the I is shelf all call tight two first is when when care. business over us. I mentioned CVS, to big comes the Walgreens, important most you're we that thing have a don't of

shelf their at the empty, They for buyer a every not really responsible profit. goes if generating with inch down square sits bad. If department. and the a shelf look over are is When they you space space in Walgreens of really, is that empty, plan, it's

you don't your consumer brand retailers really upset happens space. product, and back if get lozenge deliver they any shelf on time, as the what cut the is with So with product

major we need manufacturing. And industry brands and have who best reputation have to when the so it in reliability, the lozenge the comes we

have And business brands large would profitable our so who manufacturing us to facility. very with want we that to be do

addition we to And But that's of ordered other on that, other One a can thing it's is equipment so to it's wrapper line purchasing. which being doing that we're lozenge pieces building and in increase now, working our we are already of machinery. types another and out We manufactured. capacity. doing there's we're capacity, that now buy

release we the focus is company potential wasn't never be never put roughly a business big before. can million. really breakeven We literally of in before. upgraded type could a out to of built go from now and really the press to $XX we business earning frankly, quite But enormous. really And It equipment new it that a that our

making efficient. prices the of the more we just raising new process are facility on and That's business, plus also the business in existing our

Pharmaloz months. next the the XX over So opportunity at enormous is

And us the in value company. anybody worried about so building

it, if me, build build I with will genomics business, they had you if can First the that's came. And Well, attitude come, they're it Nebula this we of COVID, in see all, coming. they to you layup. a already and

even your They're genome a compared I'm is be have those all, But consumer in accessory only none companies provide. genetic only of product genome you you talking about interesting all companies our potentially selling them percentage do business. first lot the what's lab of I'm companies very the could not that to testing are sequencing. very, And lab, of testing a testing of at the companies small sequencing. want genome about to have, testing. talking whole studying type of also that

outsource what's labs, lab in and with have them institutions academic it. Because interesting, they that an equipment Nobody small enough to individually to building. doing some whatever on of the support genome don't particularly lab expensive testing do of And testing research they invest have we're would building type rather doing whole they're to they're out expensive is doing want doing. research, only sequencing,

so And why opportunity there ours. is company for like the a that's

We a reputation have the the business. now phenomenal lab in in industry

said, from based from York inspectors country. state the New regulatory labs the And one a in most top in stringent are is of literally in regulatory we difficult the of of I one As perspective a point New entire York view. of the the

the I lab. And with I'll to leave incredibly inspection, want it it but pleased and really talk well, our more went at about that. I'm

needed reputation. relationships genome We leaders major whole in And the equipment the We're us order in that in have equipment they used. have manufacture And now They sequencing best the global to equipment. are we the so the company test. is and the now this literally the world. every consumables literally we leading have with process great with that manufacture for working

part lot He lot A I know now we introductions. was doing it Genomics don't when of it of developed were relationships we when notable acquired we acquired of a the we've with some X.X George two, years made business it. of already They Nebula, Church were Nebula inherited part. and ago. probably a largest those they was those

So I'm going dramatic to XX, earnings growth, are year now months. associated revenue I over the in with And going really next the revenues believe, and be excited XX about significant. these next six, be subsidiaries two it to is the

the the hiring out techs. equipment, testing out this to And mean to using build manufacturing to to we're so more this lab year equipment, lozenge purchase sophisticated we're purchase genetic business. hiring build invest, to techs equipment, I lab more very labs, build

And out you understand, we're yes, to got quarters. a we for course, going built the of We're of so couple state-of-the-art lab. lose to money hiring,

We And it at doing techs validated testing we company. the in genetic working the wasn't of some have in best any our labs, lab now our yet. world because weren't

development So growth. company, about stage the obviously, and it be to be But loss us tails networking our they're going to value our the we short-term. company. the the assets what a amount is company, have potential in value of money we're for what's comparison That's the to means losing, of of nice in

further Everything to well far. So professional whole cancer. independent two businesses not I'm those Q&A. cancer, did to esophageal all not I'm than to to. with going have company is are to. the And that analysis idea we've the in I working any the talking an STATKING We're could the spend clinical is done about do going more, study a Esophageal so we happy really testing called run full statistics I there. just that the call not of mentioned.

specimens determine clinical we on based you is number the need analysis. how of And in studies the statistical the

and organizations for the process the for right calculating in for and specimens need codes So physicians we to world order commercialization. company now cancer us how we in the to around have various around many CPT an country order apply to independent accept

in we good coming should studying believe have year. that that this really number so with we later we're been the and shape specimens And now, recently, be of that in

will done the I'm be And done that so the completing studies the the specimens. looking studies, on just same first as which forward exactly to were current

and then with to able highly run are we're get going we're we be the that optimistic going to to so same And results, it.

I'm I test I but cancer anybody again, it to my Happy want anybody has think in to presentation, itself And cover. esophageal numbers do multibillion-dollar the wants if by what into potential. happy to don't Q&A, go to. wants cover the to in

to to to background. XX:XX, me So I I to little give just probably of a spoke over move just little conference Happy it the computer XX that actually stop. It's start froze. Q&A. the gives over this to our I'll and on Q&A. background to back and want bit my you minutes a over And update call our to hand company company. And

I'd want you to appreciate the start if it. Q&A, Vaisnavi, Okay,

Operator

Sure, sure. you. Thank

[Operator Please We Adam Waldo begin go question-and-answer the session. ahead. Lismore comes first will now Instructions] question Partners. Our with from

Adam Waldo

day taking too. very good questions. Yes, Thanks our for much

a of the score. You shots as or cash probability isn't visibility, two very investors which here for were into going of the several we on there next of lot lot several that have on year liquidity trajectory to next them working over think, goal company. the of a look decent I quarters, trajectory, attractive But you're in out pretty the and

burn million, Right, $XX you're of $XX at around of based a first-half run the on annualized sort million rate results. cash

the and $X balance securities cash sheet million. have of about You marketable on

receivable, progression at looking accounts need Can your bridge financing progression what could about cash opportunities thinking lay liquidity things you're terms are see the it. over for importantly, lay in other financing do you if more out next you will factor could if but four you three You out quarters? people how the least, bridge like to there you you you of can

Ted Karkus

at look know our That's on like I cash question. of anything more the don't a to But front in I numbers focus when EBITDA adjusted - me. I'd don’t our than burn, first great have I quarter else.

million think it in in the quarter. much and second the negative, better was first I EBITDA was adjusted Our quarter, $X.X than

we it's finance cash sure ability we certainly not I'm that your So you equipment. have equipment, to we where to get if If equipment the buy buy from. burn numbers

become a obstacle So major us. for doesn't cash

thinking asking you're a for me, about I am Labs? raise ProPhase doing If

prices, and or -- say. Nebula Nebula right had itself. it's don't think these and just answer you our we're but you is At market just we include nothing, our those company than I'd worth net numbers. to type facility, no. The at going things net by be capital, I especially, you And the know Manufacturing what's our the appropriate we million if to cap entire could capital. include more stock our not undervalued. But it I then working two say really could now tell working When I Genomics of that Pharmaloz $XX probably business the our to. generate from think look is of profits in pretax new is

of if we proof say increasing our we're gross the is So the increasing breakeven, our at we're matter margins, even pricing. but

profitability that want some I and it, taken with we short-term that the negotiations XX right in But to facilities things much or efficiency more business. current have things that private to manufacturing a are we're our expert. business but go efficient. We with times manufacturing I've been too times equity the increase loves XX now will that there do facility in pay getting EBITDA. that we some place and are brought can short-term adding the told into don't There's firm

more in things Nebula importantly, is $XXX be doing. $XXX million that and $XX million, business pharma not and Genomics So but is million all saying I'm we're worth we to year, worth then be it meanwhile, could potentially, the in exploding going a year. a And that

creative, it be through to raising wouldn't something want we do if ProPhase So capital Labs.

that. already, flow Cash call the the on accounts mentioned from isn't I an receivable in is flowing As issue.

receivable our we're bit particularly we new accounts flows as of explained had we in progress. Also, slowed, our receivable like since the COVID the year-end issue new of grew accounts than looked but progress. going generated, actually It make collected our receivable was we our earlier a significant any accounts call, receivable didn't little in flow COVID forward, accounts see receivable a We months improves business the from our it the We you later. the as testing XX% first actually lot six testing looked that it receivable on accounts accounts had that more quarter doing. I and made because cash like and

now for understand and companies COVID upfront do with the associated a course, So we're situation end lot a specimens to we're us. patient that expenses paid then paying in we're lot hoppy And insurance the testing, are back of we data on a when and reimburse collect. when takes the getting of longer the

And so on those upfront, later. go all get those paid out we expenses

now where a situation we're COVID less testing. So in doing significantly we're

have at same of the We COVID going for in, now testing to half we've that year, second starting business receivable accounts where significantly. we because collect we're out that the new while the coming have time, don't the expenses downsized

and flow we our cash plenty opportunities. So pretty good, of actually have is

First I of all, hypothetically, want to Pharmaloz. finance

XX could on acres We quickly. very business a can operation, building that itself, accounts very, on this We Walmart. take across mortgage our and have We even from just the building amazing receivable. business it's besides the operation. finance But out

a do want dilutive So do that at or to the of I'm financing ProPhase Labs. last thing is do I to going to rent

talk this, a about market the but that subsidiary have same and mentioned, really be can't I time, have as we might just of by At subsidiaries, might I cap the worth the we company. itself,

of, think you just and to So got Street. Wall background my is understand on

ProPhase are So for investment bankers company with, sorts dilutive all Street ways of creative this of without the Labs. with finance Wall financing working can and with with the a round these doing on secondary there background we're that great we

out tell more, where to want to at and say know to have can don't see. company. that into more interested shouldn't do And and want want see don't and some I I'm SEC. I wait in the conditions, than we'll it's right that. But I I we'll right time getting And you, don't plenty bring I just go quite not I the it of have to this point, market would the goes, underlying that. our really value talk opportunities I at possible And in about just I with in more. if it the trouble

have I Personal That's that plenty I'm pay of the in know the again, I of the do company. include way that to friends And mine capital manage stock manage finances. with believe and than one When to is even anything I company, are wanted around don't company. you stock just I I But watching shareholder of The is high. largest back way shareholders. large the also dividends. the and my dilutive are options stock and their the raise I in back hot capital are prices understand there's of low, you own. lots market stock buy thing And watching prices the when around more

I And what years, have sudden no why a last dozen for just which a successful. from what the very anything history doing all of to There's been been described. style have exactly very, so my to do of want I change it's reason I

So long Buffet building think a long-term word some the to in company. style point. it's I really term of value terms just for it's really of

I that tangents, your it went hope answers but of I brought together. a think bunch I question. I all

Adam Waldo

That's you'd from in the No, commentary. helpful. I think press release your the flow answer cash annually. first half asked flow free your earlier just your source of that's And cash today

$XX simple first-half in flow had math, the of in saved you you back year its $X million-ish. the cash the of analyzed free million envelope about So

or trying sense four three I of So next the for to get was bridge quarters. a

if think I appropriate. I've clarify you you heard think what again, and as say, think you

factor. look, could AR that $XX I what have of or heard we securitize say you I've million But is, we think

ability the business on mortgage Pharmaloz. lozenge to have the manufacturing We

genetic Pharmaloz business. and significantly see, value business markets ability plus might lines. unlock the in capital our business do main things ramping obviously, in or that the sundry five year X the the various million have more we business testing quite And next our of We to

the be in XXXX. free summary? a business Is so And fair flow cash positive that should solidly

Ted Karkus

was you excellent I but that's want because you're a what Yes, that Thank really you might impressed, don't if an come know I Yes. for summary. to well really for a Adam. for job you. do was living, done. us looking work

Adam Waldo

Okay, thank you.

Ted Karkus

should go questions? Alright, next Or any do our have lets move we please. you to other question, Vaishnavi, on?

Operator

Please The Investor. next Private from go ahead. Fred a comes McDonald, question Alright.

Unidentified Analyst

consider you recognizing you the the But isn't a is value doing ways is Ted, say than Would true other recognized? get of of you Nebula some value IPO, it the could be an or there market Nebula that our greater market Nebula cap. that.

Ted Karkus

Yes.

it's X.X tremendous great again, I similar. we built can the not It's last to almost did ThinkEquity. talk this We from But you, like then raised it's it this ThinkEquity, We of enormous about I I'm question. built by what's money to alluded years interesting, before, happened we capacity scary. lab. and tremendous business. eerily said tell out a IPOs. with What ago, the this led where So I block so and allowed question. what quarter's things

And now later. deja it we're situation is almost exact so a where the in exactly vu really same three years

for it's But for upside it's the but years, only the with business this going that's upside not to greater where is and Genomics personalized the than an decades. of mean potentially COVID I dramatically future Nebula last precision for is medicine.

is I as on said, Wall my Street. background So

Wall tell Street, So is me best you that -- at and of bring I'm I tell thing understand understand I value The needed. the as one I’m value I ways and out Nebula to the I really do. terrible understand I can everything

be build, is to the capacity. to point want me, build genetic if want best from for facility. genome I the issue real to for want already have a I having in genome we the whole whole laboratory we to not not now in I state-of-the-art the equipment, the of sequencing leading view So the And have. of world which sequencing country, and testing. only all But

best now. in the have equipment We world right the

the else nobody that for now build lab country bigger latest But we're the we this deals. choice to at to whole the the sequencing in equipment. as of genome are want that deals, equipment state-of-the-art the so capacity the get one I the have bigger country first leading We in

company they're doing we're with way. that's came profiles. us, see for who, to in to by this and believe phenomenal a five I right now his company. it by first with Nebula. opportunity students an there's That years, be our way, in And three whole job the and there opportunity George Church to Dennis, happy team because they're And they there not joined really the you, Great you of and in, because found us. a right the we work have guys, great great building do vision Kamal guys, we're it's right had now now. building ago be but years two PhD this can honest company may And

I we're I'm We're I answer Nebula. value I over going could can I'm if to we'll that that. just certainly, to not So do to, different we see. previous can't question, do directly well if saying sorry have things your ways not something. do that Well, want And the flow. of I the explore do there's and to wanted also going but time. And I mean, We'll raise to about something, caller cash multiple asked capital up

options my lots I did do a Nebula. or mortgage So financing And sort dilutive having finance I a ProPhase. of some if of can I as with something I around to said, can with point financing for do of I have without is Pharmaloz

yes. And to go now, detail but I want more is into the don't answer

to explore. We have options lots of

beauty we underlying when subsidiaries, company finance multiple has to do how the it options So gives going a is when with for significant that forward. you build you value

What the to So at to don't so have the to financing are in have want to alright. to do of and do balance. we ProPhase real dilutive is, to that just I opportunities is want Nebula, I labs, up just And scale me, a do financing large because round a see. question order we'll

I that of that's same abroad. COVID United goal the outperformed except expect was to opportunities, the in the XX% mentioned think our we with not I we the also to same a have And goal. lab the do genome sequencing labs in States, outperform country. testing country. significant only way the expect thing of but in and I've labs But I And XXX% the my built out whole

level just yet. We're business last of world. What's while. in even so over of high the couple But abroad testing as for interesting largest for last weeks in barely over the literally we're some about what's a interesting the business, from is the BXB of couple opportunities high our is Nebula been a weeks, the starting. companies Genomics I've lab and the And the level and interest for for interest talking

so Genomics. this build that's it, hope question. looking forward And answers we you, they that's tell We'll here believe will I'm is goes. opportunity to it's opportunity. where here that, I interesting. see really if right can your I I really right that Nebula And applicable of come. and taking that now But to believe really I that advantage now. And

Unidentified Analyst

Ted. you, Thank

Ted Karkus

[Indiscernible] next Alright, please. Vaishnavi question, great.

Operator

ahead. Waldman comes Please Dennis Productions. from Barrett with Our question go next

Dennis Waldman

my Thank head did don't call. or $XX you four about for taking three Ted. about QX, have Hi, to and trying versus I about you questions, million, assume was increased average Nebula see the the it In to I an of QX. $XXX,XXX X% that to of the would that consumer about QX up about And in diagnostic QX, price I did you $XX million. mind. here, around my QX I'm Pharmaloz and with products XXX,XXX, increase. $XXX. if wrap from QX. testing you went In QX

unless in at to trying test. the unit volume have least XX% revenue understand price I'm we per So testing where drop across diagnostic down in a went we increases had how

Ted Karkus

you I get apologize. answer I have would to that back question. on an to to

my versus future different point the versus numbers. you to when QX. a have in which will go down tent, Our also QX. up of service testing QX and the PCR company. focus. from laboratory testing. in to is numbers. your QX go not the back lot testing, we antigen definitely doing is of testing And would are Antigen not be It look the It's the of I down It's was done at at numbers, the

Our quarter. definitely every going down are COVID revenues

they and before but that the is, getting that's substantially. because believe there's may too. rates else going heard a people tested more I went having around. Now and The having somebody are have COVID nobody believe, people, up positivity said down we actually you getting. that, hear where COVID fourth When everybody getting COVID, or the pick question quarter, are up? is tested few who tested, you was are immediately get I about

actually had every that went COVID, person got for other you XX tested. So people had that probably

them Now people again, are aren't. the COVID people getting around but

apologize, a company. is It's the testing question lot back I to a but to the less. numbers, The down. COVID lot the But for the is really revenues So no get not never anyway. to are market focus you into any I'll gave the COVID revenues more our value opportunity going get there's our off-line less.

quarter business are way, less As we're growing. quarter it I seasonally and growing Nebula business the be if our they're all actually Genomics year and growing year-over-year. Pharmaloz second for of of seasonally. second By the doing is said, and certainly typically receivable improves business is our COVID accounts businesses, to They're our slowest quarter the our going

growth to that the the that concerned quarter-to-quarter less I'm are with both in things answers various is that's and affect we're tremendous But your in the the doing there hope various going quarter-to-quarter. businesses continue. because I But year-over-year question.

I If back to offline, you can need you. to get

Dennis Waldman

months. saying This to I'm And lot concern on is to back up last of there hearing been was positivity another though articles that the in the the hasn't X.X to the tripled even I you upswing. have And now. I traveling it that a going other the is we've media, that getting seen I've bring me have that positivity tremendous overseas a everybody Yes, virus, rates that. worst fact rates mainstream another is appreciate hit months. going XX the over are reading in we're because

So I if seeing wondering uptick you're was at all? any

Ted Karkus

No.

mainstream on just being have I positivity explained, only actually people doesn't And as rates pointed even picking because the So tested. anything. that fact not you on to are so high the don't the positivity COVID that it explanation And are the up up it. rates care. isn't an We're mean because picking indirectly without media people

therefore, So matter anything. previously. total the would positive mean What positivity number don't people the of rates is now versus testing

is upticking? it So

spread abroad? Yes, was from Yes, the upticking. China is it was. in coming a over few big months? there last new COVID Yes, it's there Yes,

not business. what have business. It's where not positive question? some we're another going It's to I'm you on be on. of on even a some I call not here. any So time. waste It's lead uptick It business, the will more to doing. but focused don't there's we're focused on focus COVID want this to the Do definitely COVID

Dennis Waldman

I you the to will in with level. week, Last Certus. hand, there, and want at next this read extensive set announcement a down made says the it ProPhase with proceed relationship just data Linebacker great to In

what was what it going So I'm level just level curious at Linebacker to? and is

Ted Karkus

way before you want but this not always want to I'm you do, to how how case of the take a look, that studies into you much is a And Yes. time to can spend, money best many much you go I it's between want clinical how scientist, explain humans. balancing

You a meaningful Linebacker, go cancer. And different of it cancer several from has into a in XX-years world go like into my humans can you for difference commercialization point make to opportunities with can compound now. the is humans or quickly treating in

the many question test, so types cell want to of many And is different do want to do do? how how lines tests we we

of we types co-therapy. And be then are great many this found without. wow, better. this a lines with know and test will found because thought work cell so so we multibillion-dollar with it drugs But significantly Linebacker as there significantly of Doxorubicin different better originally a others, worked well and We it like worked cancer. than like, and in co-therapy certain that doxorubicin we

it which So Do on, terms what you to test but opportunity, test in narrow Do do commercial to Linebacker in do terms both going also to preclinical to you of to studies? most to want single down focus cancers of every So want to you have effective. type one cancer? want with you do? which want of in be you it's

And preclinical that's with, clinical studies do why should begin I to say. you studies,

in perfect lines which cell directions the which figure preclinical and AI leader to now to exactly we're on want go. working We're commercialization we humans So want help to with focus out to to studies. doing path we an

so that's stage the And now.

once humans next complete end Linebacker, human am valuable that, you it. deal in optimistic I year. that Phase humans So our you go is with that And next licensing to extremely once doing we year, we be into And be a goal up clinical I for study. could start would

very due first or I've you can when world. the actually acquire same It's on you calls, you the do it's them, previous when all start develop you mentioned the the as and diligence difficult acquire assets to So in asset. not

the organization, focus the the yourself research see Linebacker anything and you you, I to with for it actual I surprised the isn't have like way on Linebacker the we stock we're And or so give tell us these You the results market CROs, step of been with forth. pleasantly just calls future, to term value doing going because do long and hire don't the clinical yourself. research every can on it's any cancer. you

have so to bunch the And spending commercialization. not I'm a tell lot AI not get spending licensing of a path value next we're guaranteeing. question. be we I will compound. betting we on the us XX-months do potentially have dwarf it it, all our surprise. believe but I'm could to do point negotiations I our company XX-months would we road, perfect spending we're hope a million from successful, can we're can promising you of million. for another over calls. of now. about a answered nice it's $X that again, If the using to in that I is as the company either not talking very value deal I And money down be That the where to more $X I a after mentioned, licensing a

You have a quick one.

Dennis Waldman

is the on scenario your store that of Equivir under have one. see excited the I quick a kind to it market. worst-case shelves? see we'll where What

Ted Karkus

Equivir? sorry, I'm

Dennis Waldman

Equivir, yes.

Ted Karkus

that and to we a will shelves on a studies, have doing on be a claims the of we'll round results a clinical second the commercializing forward be results to to clinical it we're online. Yes, And same but sell consumers store There's get the to And it's we pronounced very really will to between We're results, studies, powerful looking winter. then be through actually able additional I'm set us finalize enough And over that difference studies. for or really study, put those preliminary online. with complete claims packaging and study done Equivir. put good the packaging. the doing then we as The study. first prophylactic therapeutic the

putting very doesn't the brand good because I I'm turned as was that's self not stores package of the Cold-EEZE packaging. it myself, my to all claims it know word up finalize around just it and introduce ready right? stores, yet days, it. we're the claims stores. store to on mercy for on I that expert far because sell Cold-EEZE the wanted A As to the an I sitting from will a I into not the We're involved have the if in that. take to in that on it

got with claims right. get so the to And Equivir we

I the the they're fourth it of coming that it. as timing. We're planograms, of you how we're A to excited far the about retailers can't So that be our is stores, next And talking we're and sell then get based there's doing on when the in talking variables are, how control. we'll the and as number months, part doing introducing now strong tell the online. going claims quarter, and their timing a about year, of out really

category. to But the potential a I a with in that's want products, supplement immune good potential huge. products, for dietary really defence defence know And because this just there's Equivir, immune great is business long-term

come business. our historically, with like out defence great think I If very And it immune you a be that product valuable. Equivir, could was

we selling so step again, be a can in whole distributing that to and Interestingly, want other in is push interested consumers But so making that first that that right. on results we thanks. then that the to start some a the in get the well. potentially claims have online. this product. I we packaging don't infrastructure successful Having are And into bigger All for that get will said And actually preliminary But very countries have stores. some as much call. too on

Dennis Waldman

Thank it. you. That’s

Ted Karkus

Vaishnavi quite call You’re next [Indiscernible] welcome.

Operator

Okay.

comes call with Please H.C. Our next question from go Yi ahead. Wainwright. Chen

Yi Chen

second within Let's questions. you for Nebula so Nebula actually from from Genomics? over Ted. revenue, first say, question $X My taking coming for the is, Hi, revenue the quarter significant Thank any my is second quarter coming there million Genomics?

Ted Karkus

one, now right course. said last quarter sorted probably it and gets and in I this is we complicated problem out. Yes. too, this Oh, We're a at the of the yes,

for library. We to have test of a revenue itself subscription we a do then genome sequencing the selling our of we sale two sources the sell the there's when There is But sequencing. whole which test. also,

course, we course the a get on recognize we're the of is subscription a tough we When of when immediately. so even that and that upfront test upfront subscription. want And sell that and SEC revenue getting cash over really we to very library, us sell this. the we to money revenue as though are recognize a They where accountants the tough

So if us it want three that or year we they even three a to recognize get though lifetime upfront. years a subscription, subscription over revenue it's

sell So though that we they want and we subscription three if collected we today that over recognize years, a to even us $XXX, today. $XXX collect $XXX

as a as the we offer to recognized language. months setup what what terms now with done consumer so language subscription. it's fee to working in an we expect we So attorneys that that have we've is think We of perfected our opposed out ongoing the

be we in the generated revenues out. opposed As as we the it able that quarter perfect to to recognize they're language, will spread in having which

we the pricing the our goes even able ramp test soon subscriptions up volume right the the City be whole but a Garden as selling will probably also conference are. to the ballpark, We'll we're we are my these like I head, our on more a for But it profitability now, volume, there issues up with run rate And on shareholder which growing. the volumes, genome don't drop call. now non-GAAP bigger we quickly at at to of timing all But our of ramp further some are subscriptions there significant. City I for the guess with as want revenues plus a million number my So depends quoted up the Nebula how that lab, is margins in we're drive be sequencing, right off our and but numbers, where even Off significantly. head, $XX the Garden the lab. top higher but of top that's more number. sell

good drives growing in actually in revenues drop more more we because it's this of again, there years with literally And turn volume, with now. So price and the million $XXX there and us more behind which are in it drives listening, no out for right are million we're the revenue subscriptions, infancy And that profit. that business there development. others $XX genomics for are if out us companies valuations

I every revenue-generating we're day. rate dramatically they're so the of a year-over-year, besides revenues, And but believe, growing those run already growing company,

of weeks new we I from numbers we mean volumes the significant. got in couple ads the that some ran, the just last were

Some a daily of in on I volumes volumes, basis. fact, the think ever we largest the largest received

there's the growing question. all even and and So Hope by started in a that BXB business, haven't is coming. no and bounds, This business significant way with leaps we answers. that's

Yi Chen

my to question. related second that's Actually,

your of So you going the both? target be sequencing or as businesses or volume wrap main forward, services customer consumers up will

Ted Karkus

Genome to be of George has Abu working we're debate residents million out Altman That's in you, Russ an George at that's you the UAE. and what question closely they're tested, residents what million UAE, with X going the Emirati testing of country and at George's if Church planet the tell in in X very sort vision always the Harvard single Programme and with and it's There's doing in million been Church, Stanford for residents. person ask on that's and on. It's every X internal a because great he'll the Dhabi,

consumers we're did testing here, much we're where Nebula. is, And was country medicine even XX program I is. the even ago about doesn't same If still sequence And what know most we that literally question know what precision people consumer the I So We're genome holds just what of personalized I the years are. know point to see? we same of two it only to then multibillion-dollar type how think talking is whole think it But is surface. direct company. testing. we committed if think before genome percentages didn't about the acquired sequencing of here. million the can a X% of the

the ancestry learn is question United around it sequencing differences and how quickly whole is important learn, genome how States the the how about important learn the world So and in X% consumers to they companies learn do, genome, but than want in comparison, less test you the which information, and health-related they between for ancestry if whole of genome great is your sequencing what where pales information.

And so matter time. it's only of a

Internet the literally ago. XX-years its where the was business it's infancy. It's is in consumer I think

and the right us can business of and types with on business other side, academic But bring businesses, they then enormous now. institutions to

large. is will so this are fill And really I scary to lab, is we an this get lab, of starting talking that that in what utmost call And with we build amount have it built conference confidence enormous earlier business. larger a I was that now we've capacity this about inquiries the we're

doing we're So now. you can focus on whatever business

we I do build I if put the times release that. to believe our or our to believe in I Nebula. press It's capacity current it. of X do, fill what capacity times lab we'll is in think is lab And that a the around XX want million. potentially $XX I I

about We're an to place, the multibillion company, have quickly. So all in of right already the we're right we're We already Nebula business. already talking with a relationships. time. dollar be in opportunity growing We're the and

We have everything.

have the an entire build incredibly genomics We relationships entire the infrastructure, to successful business.

I focus in you point. think Nebula. But just we that be And and out starting mentioned our be ways it on would that current could can the be revenues. bring I value substantial, would so And may again, there

Yi Chen

a comment, be of commercialized? respect esophageal My next BE-Smart you rough provide could time the could could question to when cancer you with is terms it test in line

Ted Karkus

Sure.

Okay.

in conference There's without codes as major there's So first commercializing year. quarter CPT the CPT with difference of between next a codes. commercializing a the

we is consultant at an CPT who confident have conference. that codes We that the will expert get

So quarter next commercialize code. looking can We CPT it. for year, first we're without

And headed doing our so and said, XXX which a and we're basically, as weeks. in of by Alice and Alice these here couple the XXX lab we lab of specimens, have working next right here to supposed XXX come team soon as again, now, next we do world-class Lioi

This two data specimens, month would should be XXX cash-based be insurance what's to the not test. or for when we enough this a that use then reimbursed by and be within complete called a So those companies. only, do next validation would research

And the to get And you. once brings I'm the get is in cancer order not really But focused opinion the key on it to as key leaders codes, a the test. cash-based physicians right the test CPT we behind the and now. institutions then that wanting

incredibly there's up that this big. is do build we very XXXX an this a could XXXX into projects project. where test ramp-up really a But So could whole quickly. very be But can valuable as

out ourselves. companies might building opposed there who have And I'll there become to out that us cancer also are esophageal of portfolio large to our a possibility tell as very love part their the infrastructure a there's you test

year have enough the here Actually XX% all confidence numbers. sensitivity opportunities that confidence on not complete studied So independent get current based it's even or it's much show CPT once and once we codes. the specificity studies the we specimens or it's following level a that the next so CPT levels and we to codes analysis their and enormous are STATKING does

other cancer market. bottom numbers most been the fantastic, far, tests much line And is, so on have of the better than the our

be that doesn't is we outlined CPT codes. Phase it And market then this potential once multibillion-dollar on And do, a where commercialized people ultimately have confident an to becomes even And going I've so and there. there's got performed out test get very to who the larger adopt to this right get exponentially or it whether I'm these. at develop business we're doctor's previously, because office brush esophageal have tell X risk that take we in of to ultimately, need brush proteins into test the It technology, if order throat, you now. you're up esophageal up you low risk high a you it with you picks cells. a cancer, a picks your Then to go down whether cancer

or GERD, have ahead everybody before would you're do need the and And on right steps it you now question. on? based we determine next test, low if endoscopy, get go risk. a forth. And at And or quick the so our so And more, GI sorry. you test this hey, then let's you to okay, see to be just an if to esophageal that what's risk what is Go can even next "Hey, GI into yes, cancer and do going test physicians that becomes your the has everybody high past going say, that, I'm say, in

Yi Chen

if if I level Yes, more revenue thank you question the gone? of is comment be baseline last COVID My can completely you. is, diagnostic wonder on testing

Ted Karkus

not clinical yet So we are testing. doing lab

the significant Diagnostics we've we by led of business. he very, relationships COVID a multi-hundred-million-dollar developed this, is industry. business, President just quickly, the so our and Jason, in and built who And again, very have was And

to relationships out build getting testing. our gating clinical in network We factor are those COVID with lab. or issue with dying to exploit insurance is The

You didn't emergency. especially the have health be to in public network during

practices. want it's such It's seen different completely and business incredible. So really business. a to turns now of a anti-competitive don't It the never monopoly. somewhat with out I anyone. really lab It's I've fights disappointing is pick

not you're out then providers, is of the network patient to they complains with want pay because have of the patient if some then in specimen don't then the to physicians going to to send send the major if But the specimen, insurance the you the pocket physician. and you

linked customer to to ours, the And don't the you see meanwhile, in like between that big of your if a let want it's companies physicians So want lab all are network. the network. weren't we insurance is

will so same exact perform companies exact the you the these, one of from will the two And test $XXX have exact insurance perform level gets patient, test. test, that that for same three labs same labs

won't lab get well and lab, the work. test same for second The we'll exact reimbursed the third as for get $XXX

really it's be to a so And important network.

get by say get future business our Pharmaloz. now soon too network some not lab that in don't we the focus going want we to out I have too then our have to I and optimistic way. that opportunities main we into for as get now. is we and revenues it, Nebula Genomics will will now, So lab our but in right much clinical business of build significant in for to am but opportunities the some as a looking for the acquisition would we right small difficult and I'm I do, right But be network

Yi Chen

much. you Thank it. Got very

Ted Karkus

you the think rate significantly the next our kind going from should our I you And be don't question. to for in a of you out Genomics larger greater is telling lab. Nebula why demand is there, capacity revenue Yes, that $XX million, of about lab. that significantly just sure. I'm And Genomics, year, I thinking again, out just overlap building throw the for run idea gives didn't our we're the really what's Nebula be It than ask lab. what

the is We we've been outsource doing have specimens, which what also ability to that.

So we lab anyway. built up the

building And from or be capacity, run of the building lab even revenues capacity, once another go build we we out then, them. have without only course, at million next So up to numbers more in than a potential $XX could Nebula rate those of year. more for more

Nebula the that's side. So on

previously I've million, so. capacity that and Pharmaloz or mentioned I we build would our $XX we million do think want most On the we side, filling capacity that when of no think have problem to $XX that to I

in lozenge we more then room whole that for right want There's capacity bring Essentially, lines. might in and to lozenge increase bringing a equipment now we're there's the to short new line. term So two it.

like our that building next be straightforward should million quite year. funky. seems might so million, and It capacity And of $XX more $XX next year, be than

on business itself bringing of And profit next that we're could million in again, by talking about $XX the our new generate pretax profits year.

looking and both really ramp last I'm to I appreciate going next this of And be So so in associated a and place so questions months And earnings the with call. how capacity, into get it we the Nebula for to has ramp-up the you thought out the was and try shorter in prices Pharmaloz the the businesses And forth. Thank you ramping be coming and the up and really do next Nebula increasing year. to more really and on up year possible. capacity I'm just quite the to with ramp-up. sorry, Yi be Pharmaloz call. revenues terms as quickly I much, as let's really quickly it's figuring for substantial six the to next

Operator

Alper comes [indiscernible] question from Lee Please Alright. The go with next ahead.

Unidentified Analyst

Hi, the about couple Thanks, over of were the you happening Ted. what calls, last excited was UAE.

Can today. some you mention not anything give did color? us You

Ted Karkus

what's Here's UAE. about interesting

in have talk question. actually of lot until and careful on to Yes, trying that's be a set things to strong. UAE. couple a weigh about they're I great a to not So things. going potentially I'm there's of sort

access So countries to don't their reasons York, are we build country. some we companies a us want the Genomic in Genomics laboratory inexpensive genome venture one actually It's very even potentially we Nebula major to that specimens in and why joint send Most interested have opportunities interested outside in for built though country. their whole in to Nebula lab had abroad. relatively New sequencing of the a

doing even for the Now of course, some we the consumables. I believe, can because in it lower in the pricing offer world prices we're our of best getting, lab

to really we The own is huge. opportunities. a in our how ourselves? focus want have question then spread on more then And it's that lab So want than do we abroad. to so opportunity I of

us. already the with of aspect actually and organization The and go. cancer wants UAE this other have that a in clinic to we work clinical test. to Cleveland ready is research venturing esophageal joint Clinic excited a that's And or There's Mayo a

Otherwise, venture there's I'll that then then on have do and jump We them companies United only will But partner we lot over the joint more we'll assessments us. do have States first that or upfront. want scrambling But commercialize a And a it. lined to these and make up. in there if over I could money commercialize think a study come for I there. all

But we working promise I what the But and don't and it, lots opportunities to yes, on I want there. are with right of I parallel, over deliver. in can what it, and touch There far we're we're get under too myself. is just there's Nebula feel the and doing want ahead to with side, opportunity taste building. investor. United in much of don't so that's States, over

following this opportunities. and there's just small-cap companies, so other true definitely is of slowly. And up I've We're they noticed, them. definitely But all on move the thing will

so the the UAE they And even slower. in biggest companies move

an but today. opportunity So time. a have don't I enormous now to do little Nebula they're want Genomics with deals, all they interested There's right

us literally one demand much had players build many the why genomics that that's to a business ago, want bring few we literally, out just there. manufacturers too large discussing, side. hey, we we laboratory, times got too our days out to There's in just And business. world-class something XX of down and just There's there were

have joint We'll and it. have Genomics But So why billion for in to pay $X a for you even right could we'll interested doing abroad the says, it, a lab I even company be venture, I go build don't that. the company billion pretty United joint build if I'm a here hey, $X venture Nebula in process. that pay the lab, in States. quickly we'll

versus and attractive I'm today. to was about long-winded have weigh I can time are that taste same a question. today feel opportunities your I but to opportunities sort have down just I the know that road. of UAE, I touch, so the the So how at other excited Yes, and they answer

Unidentified Analyst

Okay, thanks.

Ted Karkus

Yes. I more one have welcome. And question. Alright we you’re quite think

Operator

Yes.

from Adam We Partners. Lismore with have Waldo a follow-up

Adam Waldo

that sense, NNavidea from those of base? follow-up, all-cash a looking front end. in I the Can this still a you general publicly And at you Is the stands? with other bridging to are on unit that quarter, But really Biopharma. an it XXXX? in Or you around? should made where you are unsolicited asked say could for letter dead NAVB anything business at the For that point? have during to on about offer you and and liquidity revenue cash back strong you five generation Or really opportunities get have the a resource focused the have come flow still your

Ted Karkus

what I doing. the really extent I really B. was like like some just dovetails on to about question over to to or really don't don't who our like latter. caller the UAE, And A to I'm That's last your the to have our in B, assets. I want want really that and opportunities I to lots we company focus into elf of spread sell. asked I UAE. spread the want

on my them even great because If I forget I focus want nothing just we about opportunities right? want Linebacker, If I really opportunities. about we don't great okay? have So Forget just to or focus Pharmaloz Equivir, but do we a Genomics, a in company And right? years, one, of than could two focus We years. could so blockbuster be other a unicorn and that's couple be on cancer, all esophageal focus. that's Nebula

are Having said that opportunities. there

happen underutilized about, talked to that commercialize. assets have don't in could you with that today, to want is in to happen region. We company have the commercialize it phenomenal So that talk the they we it about I region fits that really relationships perfectly with these we and that except U.S., that happens in MENA the an to can in be and asset company,

happens just to it more fit. a I it. So be don't It's perfect a to say still about perfect fit. want

two or They They've settled the thing most whether perform, assets was, work at in based anything over also last hundreds the out were I on with the not of years. managements but on great not companies about one in I were the and opportunity was looked it general, couple can in small-cap acquisitions general, of how three. partially team. but the company, say we general, But based or and in management I'm saying of this the will

that don't about. they management I motives team want ulterior the with So the shareholders this the why team. exploit that management question work know we can to unless know wouldn't don't assets And a is, there's have,

very be we bottom could money the acquire we worth But So think don't assets that's is that. the say that all don't if can exploit an lot assets, them. we about awful that to But have I quickly. line they I of acquire

to it. So team at it What it fits open ProPhase, to am I able is Yes. I could particularly it? about in like well. handle really My be scientific

builds In and I and opportunity. So looked developed, relationships that's already and the to at And already acquisitions. think the of quickly. Unless why I that have. we wouldn't out it upon general, are people subsidiaries we not growth other the very we roll for have accelerates can hire looking I'm have

So so that insurance can ready a in-network can go. for lab for I to that's because example, lab, our development that if this do lab of small clinical the fantastic the we accelerate I'll to clinical have we find get

a So example. that's perfect

Adam Waldo

Right. No, that makes sense.

should all So cash limited. I is again, have just intents to or we we'll burn, NAVB for financing options have a into be a more continues dead letter? look assume and deal that mean Or to wait road increasingly the morph see. significant given that the Could potentially company purposes, advantageous to their and down

Ted Karkus

we'll there. just do I know it are I they We'll said to better have certainly couldn't the I company. don't control myself. it thinking. what that. perfectly. you don't a investment said Look, if it You know have an play year. I And for don't have

have don't do you know you If interest if there. not. I it an or

place. only comments the first in and there's The have don't letter involved that's made reason an bottom the ProPhase on offer why Labs line opportunity, the is You that. and got

Adam Waldo

financial long. in this looked press releases We're and Cat the company’s stock, Farmway is not like at not just I it the your across but came very involved obviously

know were So we right? what I doing, don't

Ted Karkus

we that it. they owns and cancer great lot it bear company under were were they but to a circumstances, team company. look, in couldn't the finance the similar they esophageal pressure, couldn't a We finance Well, a the management And Yes. acquired under test market, were of work with.

acquired that test, acting who for esophageal with CEO fact, the In of with cancer as to the gentleman working and a working part we deal worked our a at was He's was time very senior the is is Latkin Jed involved great, consultant. now. fantastic. company amenable the it That because was us development but the the with right out asset management us and

since the excited frankly. a mean esophageal we or about quite development lifetime not. It's as opportunity, cancer, I'm acquired so I it

nothing cap opportunity, in lifetime it's market it's for, our all a go. there's systems and but course, Of

just because again, the for it's excited make it like this when some don't But reference Exact people future. about I night I'm that So Sciences. and And day.

know It's test talking primary business for a I billion $XX as billion, since cancer. they're colon. is them billion they Their $XX a about been company. I've Cologuard $XX colon were don't company. a

movement. require just test bowel you esophageal They a cancer, a have make to We for right?

ultimately, inside. getting are are so they people to don't on do Ours And right anything test brush that you already maybe endoscopes now have a where put anyway, extra. a

greater and specificity that our believe Cologuard. than we And be may sensitivity

right? And so still I'm of What a company, the be our triple company even to that not company. its company, a cancer million be revenues billion if would for $XXX to value $XX of looking all billion esophageal $X our

think Anyway, is So the enormous. opportunity there your pretty I I answered much question.

Adam Waldo

You did.

for a I the the think Cologuard Sciences is pretty answer to Exact analog analog, interesting my ABB question one. on Thanks though.

Ted Karkus

the company. everybody And Have day. a today. for the great of really call nine really about appreciate lot joining I six, next today. joining I'm I'm excited forward three, Obviously, in quite XX you looking future I of You're the months. progress welcome. to thank all a and the

Operator

our concludes participating well. the as you Q&A and today. call Thank This for you. Thank session

ProPhase Labs (PRPH) 10 Aug 232023 Q2 Earnings call transcript