Shares of Prophase Labs Inc. (PRPH) surged during the pre-market trading session. Let’s see why?
Prophase Labs Inc. (NASDAQ: PRPH) stock jumped 5.87% at the last close, and the PRPH stock price was seen up 5.9% in the trading session before the stock Exchange. ProPhase Labs is a medical and scientific technology company with a wide range of products. In its CLIA-certified laboratories, PRPH’s subsidiary, ProPhase Diagnostics, offers a wide range of information services and clinical diagnostic tests.
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What is happening?
PRPH has revealed the launch of two wholly owned subsidiaries: ProPhase Precision Medicine which will focus on genomic testing technologies and ProPhase Global Healthcare, which was recently formed to expand SARS-CoV-2 (COVID-19) testing of PRPH in other regions and seek other health care-related initiatives.
ProPhase Precision Medicine will seek to purchase existing companies and technologies, or otherwise access whole genome sequencing (WGS) technology. WGS is a method for studying complete genomes, containing genes and chromosomes in DNA, in a single step. The results of genomic tests can be used to identify inherited diseases, predict disease risk, predict response to treatment, and define genetic abnormalities, including those that cause cancer to grow. The costs of whole genome sequencing have fallen dramatically in recent years, enabling new services that can provide more in-depth testing, better diagnostics, and the ability to predict outcomes.
Ted Karkus, CEO of ProPhase Labs said:
With the ability to examine every base of the genome, whole genome sequencing is quickly becoming an important part of the future of healthcare. ProPhase Precision Medicine was founded to research ways to gain a share of the multi-billion dollar genomic diagnostics industry by enabling patients to understand and make informed decisions about their own unique genetic variations. If PRPH can perform these activities in combination with its current CLIA labs and leverage the significant infrastructure already built for its other lab testing services, a PRPH genomics company can synergize with its current ProPhase Diagnostics operations. However, PRPH is eager to explore other available solutions that might fit its strategy.