ProPhase Labs, Inc. 8-K

What Happened
ProPhase Labs, Inc. (PRPH) filed an 8-K on Feb. 13, 2026 reporting a Feb. 3, 2026 press release that the company has initiated a potential sale or strategic-partnership process for BE-Smart™, its clinically validated esophageal cancer risk stratification test. The company has begun outreach to more than 70 potential acquirers. BE-Smart™ is a CLIA-certified, CAP-accredited laboratory-developed test (LDT) that the company says is ready for commercialization under the LDT regulatory framework. The press release also updated progress on the Crown Medical Collections initiative tied to legacy COVID-19 testing receivables held by the company’s lab subsidiaries, which are currently in Chapter 11 proceedings.

Key Details

• Press release dated February 3, 2026; disclosed via Form 8-K filed Feb. 13, 2026.
• Target outreach to more than 70 potential acquirers for BE-Smart™.
• BE-Smart™ is CLIA-certified and CAP-accredited and presented as ready for commercialization as an LDT.
• Company now believes >60% of aggregate Crown Medical claims are commercial payors that partially reimbursed claims (potentially associated with higher recoveries).

Why It Matters
A sale or strategic partnership for BE-Smart™ could monetize a clinically validated, regulatory-ready diagnostic asset and accelerate commercialization or provide cash/strategic resources for ProPhase. The LDT/CLIA/CAP status may reduce regulatory hurdles for near-term commercial use. The updated Crown Medical analysis — that a majority of claims are from commercial payors who partially reimbursed — suggests potentially better recovery prospects in the ongoing Chapter 11 proceedings, which could improve expected collections from legacy COVID-19 receivables. Investors should watch for further announcements on formal bids, partner engagements, or settlement outcomes.