Why Is Prophase Labs Stock (PRPH) Up Today?

Prophase Labs (PRPH) stock rocketed higher on Friday after the biotechnology company announced a non-binding Letter of Intent (LOI) with Advanced Biological Laboratories. Under the terms of this LOI, Prophase Labs would undergo a reverse merger with Advanced Biological Laboratories, which would be the surviving company with a 76% stake from its current shareholders.Claim 50% Off TipRanks Premium and Invest with Confidence Unlock hedge-fund level data and powerful investing tools designed to help you make smarter, sharper decisions Stay ahead of the market with the latest news and analysis so your portfolio is always positioned for maximum potential Prophase Labs noted that the negotiations haven't been finalized yet but the LOI sets the potential framework for a deal between the two companies. That includes a reverse merger that could be worth up to about $30 million, as well as a special cash dividend of $10 million to PRPH shareholders. Prophase Labs and Advanced Biological Laboratories expect the execution of definitive documentation within 60 to 90 days. Ted Karkus, CEO of Prophase Labs, said, "The proposed transaction structure is designed to deliver meaningful near-term value to our existing shareholders, while aligning ProPhase within the ABL Group, a global leader in molecular analysis, clinical research, and healthcare innovation that can accelerate the development and long-term potential of our genomics and diagnostic programs." Prophase Labs Stock Movement Today Prophase Labs stock was up 49.48% in pre-market trading on Friday, following a slight gain yesterday. However, the shares have fallen 86.17% year-to-date and 82.77% over the past 12 months. With today's news came heavy trading of PRPH stock, as some 37 million shares changed hands. For comparison, the company's three-month daily average trading volume is about 2.84 million units.