ProPhase Labs Announces Definitive Agreement to Acquire CLIA Accredited Lab Certified for COVID-19 and Upper Respiratory Testing
DOYLESTOWN, Pennsylvania, Oct. 23, 2020 (GLOBE NEWSWIRE) -- ProPhase Labs, Inc. (NASDAQ: PRPH), a diversified medical science and technology company, announced today a definitive
agreement to acquire a Clinical Laboratory Improvement Amendments (CLIA) accredited laboratory. The lab is approved for a variety of important medical tests, including COVID-19 and Respiratory
Pathogen Panel (RPP) Molecular tests. The lab will be owned by the Company’s new subsidiary, ProPhase Diagnostics, Inc., which has been formed to aggregate medical testing business opportunities
and expand the lab’s capabilities and capacity.
Ted Karkus, Chairman and Chief Executive Officer of ProPhase stated: “Over the past six months, the Company has met with several developers, manufacturers and processors of test kits. Bill Phillips, COO of Spectrum Solutions, an industry leading molecular diagnostic solutions company that has received FDA Emergency Use Authorization for their saliva collection COVID-19 test kit, was asked to comment on the ProPhase Diagnostics transaction. Mr. Phillips stated: “We are always searching for qualified labs to process our test kits. We welcome ProPhase Diagnostics to the diagnostic testing industry and look forward to working with and referring customers to them.”
The lab being acquired by ProPhase Diagnostics is Confucius Plaza Medical Laboratory Corp. (“Confucius Labs”), and is headquartered in Old Bridge, New Jersey. The approximately 4,000 square feet lab is a full service Clinical and Molecular lab that provides a wide range of testing for diagnosis, screening and evaluation of diseases, including COVID-19 viral and antibody tests. There is significant current demand for COVID-19 testing. However, with its RPP testing certification, the lab is also able to process tests for a variety of influenza, respiratory viruses, pneumonia-causing bacteria and other infectious diseases.
Additional laboratory equipment has been ordered, which the Company expects will be delivered and installed within the next few weeks. The new equipment will expand lab capacity to enable the Company to process approximately 7,000 – 8,000 COVID-19 tests per day, subject to adequate staffing and customer demand. As demand for the Company’s diagnostics services increases, the Company intends to further expand its testing services by expanding the current lab capacity and/or by acquiring additional facilities.
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