Pharmaloz plan is to build capacity with a goal to attain a revenue run-rate of
Pharmaloz offers its customers ultra-high-quality products and sources from ingredient suppliers who provide us with top-quality ingredients. Our team embraces innovation and looks to formulate and implement new ideas that assist our customers in bringing them to life while answering consumer’s needs.
The 2024 comprehensive plan aims to increase current lozenge production capacity by 400 % or more and thereby capture more of the expected increase in global demand for high-quality lozenges.
Highlights of the Growth Plan:
- Financial Goals: The company goal is to ramp up to a run-rate of
- Global Collaborations: Over the past year, Pharmaloz has been working with several world-renowned lozenge brands to finalize formulations. The possible demand generated from these collaborations has the potential to help us meet or even surpass our ambitious new targets.
- Regulatory Milestones: Pharmaloz has successfully cleared its extensive multi-year FDA inspection. This pivotal accomplishment satisfies a critical requirement for onboarding some of the largest global prospects. Production for such prospective customers could begin as soon as early 2024.
- Operational Excellence: Year-to-date, the company has witnessed a 100% year-over-year growth in production in its non-Cold-EEZE contract manufacturing division and is currently capacity constrained.
- Capacity Enhancements: The first batch of a series of new, state-of-the-art automation equipment is scheduled for delivery and installation next month. This high-tech equipment is expected to boost existing capacity of the first lozenge line by close to 50% before the end of 2023. This should, in turn, increase revenues an additional 50% even before the next lozenge lines are installed.
- Future Outlook: Utilizing the current three-and-a-half workday schedule, Pharmaloz is projected to achieve a run-rate of
- Second Line of Production: Equipment for a second lozenge manufacturing line has already been ordered, with delivery and installation planned for Q2 2024. This addition will further expand capacity, increasing the ability to service an annualized run-rate of revenues to
- Strategic Planning: In anticipation of further demand, Phamaloz has engaged one of the nation's top engineering firms to draft a three-year master plan, that includes planning for a fourfold increase in capacity by
- Sustainability and Added Margins: Once all new lines are operational, one line will be exclusively dedicated to the production of higher-margin organic lozenges, thereby continuing margin expansion and enhanced profitability.
Comments from our CEO
"In an era where the lozenge manufacturing landscape is fraught with challenges, Pharmaloz stands out as a beacon of reliability and quality," said
To duplicate from scratch what Pharmaloz has built, we believe a competitor would have to embark on a 5-year plan to find land, zone and build the plant, source equipment all of which has 12-18 months or greater lead times, hire and train a full staff including specialized chemists; and then wait 2-3 years for complete FDA inspection and validation. And this is before one even finds a customer willing to place any long-term, substantial orders. Accordingly, our own customers and customer prospects are currently seeking to lock in long-term contracts with Pharmaloz to ensure that they are not hit with supply shortages in the future.
Pharmaloz is rapidly evolving into a key pillar of growth for
We believe that current net working capital, accounts receivable, access to a mortgage as needed, and financing options for the equipment itself will adequately finance all capital requirements for the foreseeable future for Pharmaloz as well as our other assets that are in the development stage, some of which have multi-billion dollar potential," concluded
About
About Pharmaloz
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Forward Looking Statements
Except for the historical information contained herein, this document contains forward looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding our strategy, plans, objectives and initiatives, including our plans to grow our subsidiaries and build a high revenue, highly valued company, our ability to quadruple production capacity at Pharmaloz by
Management believes that these forward-looking statements are reasonable as and when made. However, such forward-looking statements involve known and unknown risks, uncertainties, and other factors that may cause actual results to differ materially from those projected in the forward-looking statements. These risks and uncertainties include but are not limited to our ability to obtain and maintain necessary regulatory approvals, general economic conditions, consumer demand for our products and services, challenges relating to entering into and growing new business lines, the competitive environment, Pharmaloz’s ability to receive orders or contracts for the volume of business currently anticipated and the lack of assurance that such orders will be forthcoming, Pharmaloz’s ability to attain the profit margins currently anticipated, the potential adverse impact to Pharmaloz’s profit margins by matters outside its control, including but not limited to labor costs, availability of labor, ingredient costs and availability, equipment malfunctions, and unanticipated delivery difficulties, and the risk factors listed from time to time in our Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q and any other
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