ProPhase Labs Inc., Doylestown, says it has sold its Cold-Eeze brand zinc throat drop business to Mylan NV for $5o million. ProPhase will continue to own its plant in Lebanon, Pa., and to develop new therapies, including a male sex drive pill; and ProPhase's Pharmaloz subsidiary "will enter into a manufacturing and supply agreement with Mylan," the company said.
With 54 employees, according to its last annual report, ProPhase has sales of around $20 million a year, and has lost money (on a net-income basis) in 8 of the past 10 years. The stock has traded around $2 since 2014. The company is 24 percent owned by insiders led by chairman and CEO Ted Karkus.
Mylan is run from offices in Canonsburg, Pa., near Pittsburgh, but is legally based in the Netherlands. The company has bought rights to market dozens of drugs in the U.S. and other countries. Its most popular products include the EpiPen, an anti-asthma drug-delivery system whose inflated price has been the subject of a federal investgation.
Herb Kozlov and Aron Izower, law partners in the New York office of Reed Smith LLP (corrected), advised ProPhase (once known as Quigley Corp.) in the sale, with help from Dean Melitsanopoulos and Kevin Gallagher. Drug investment bank Bourne Partners also advised the seller.