ProPhase Labs Soars After Signing Letter of Intent for Reverse Merger with Advanced Biological Laboratories
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Dec 19 2025
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Source: SeekingAlpha
Proposed Merger: ProPhase Labs and Advanced Biological Laboratories have entered a non-binding letter of intent for a reverse merger, with ABL expected to become the majority owner of the combined entity.
Valuation and Dividend: The preliminary valuation for ProPhase's legacy business may reach approximately $30 million, and a special cash dividend of up to $10 million may be declared for ProPhase shareholders.
Ownership Structure: Upon completion of the merger, ABL shareholders would own about 76% of the new company, which will focus on ProPhase’s Nebula Genomics platform and other health initiatives.
Market Reaction: Following the announcement, ProPhase Labs shares surged over 50% in premarket trading, reflecting positive investor sentiment regarding the merger.
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About PRPH
ProPhase Labs, Inc. is a biotech, genomics, and consumer products company. The Company is engaged in providing whole genome sequencing solutions, diagnostic development, such as its potentially life-saving test for the early detection of esophageal cancer and a direct-to-consumer marketing platform for OTC dietary supplements. It develops, manufactures, and commercializes health and wellness solutions. Its Diagnostic services segment provides diagnostic information services to a range of customers in the United States, including health plans, third-party payers and government organizations. Its Consumer products segment is engaged in the research, development, manufacture, distribution, marketing and sale of OTC consumer healthcare products and dietary supplements in the United States and provides personal genomics products and services. The Company also develops and markets dietary supplements under the TK Supplement brand, which includes Legendz XL and Triple Edge XL.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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