The Board of Directors at ProPhase Labs recently approved a $6 million stock buyback, reflective of its healthy bottom line. The company’s newfound profitability stems from several strategic acquisitions, according to John George in the Philadelphia Business Journal.

In the four years since it divested itself of its flagship product — Cold-Eeze zinc lozenges — ProPhase Labs in Doylestown has seen its financial footing solidify.

In 2020, the company made what turned out to be a very strategic purchase. For $2.5 million, it bought a medical testing facility from Confucius Plaza Medical Laboratory Corporation of Old Bridge, NJ.

Three months later, that line of business boomed as COVID-19 testing became more widespread. It’s expected to be somewhat of a continuous revenue stream, fueled by ongoing testing associated with the Delta variant.

That return, augmented by the acquisition of a San Francisco genomics sequencing provider, bolstered ProPhase’s revenue and cash flow. It’s now more than four times what the company reported in 2020.

ProPhase’s outlook may now enable it to repurchase its common stock, depending on a few variables:

• Its price
• The current trading volume
• General market conditions
• The company’s working capital requirements

More on the financial condition of ProPhase is at the Philadelphia Business Journal.