CHICAGO, IL / ACCESSWIRE / July 24, 2024 / Cosmos Health Inc. ("Cosmos Health" or the "Company'') (NASDAQ:COSM), a diversified, vertically integrated global healthcare group engaged in innovative R&D, owner of proprietary pharmaceutical and nutraceutical brands, manufacturer and distributor of healthcare products, and operator of a telehealth platform, announced today that its wholly-owned subsidiary, Cana Laboratories ("Cana"), has completed the first phase ("Phase I") of upgrades to its manufacturing capabilities and capacities, positioning it to generate over $10 million in recurring annual gross profit at full capacity, expected to be reached by the end of 2025.
Cosmos Health acquired Cana in July 2023 and has since invested approximately $5.5 million in the enterprise, which is licensed under European Good Manufacturing Practices (GMP) and certified by the European Medicines Agency (EMA). The investment includes, among other things, upgrading Cana's 54,000-square-foot Athens facility with new machinery, equipment, IT infrastructure, and quality management systems, as well as funding human resources (including new hirings and training), inventory and supplies, regulatory compliance, drug licenses, and product development and testing. These investments have laid the foundation for future growth, enabling the Company's facilities to accommodate a wide range of pharmaceuticals at scale, including tablets, capsules, syrups, sprays, creams, gels, and ointments. As a result, Cosmos Health is ramping up revenue generation from its contract manufacturing business, producing products for third-party clients, often referred to as CMO (Contract Manufacturing Organization).
In line with this strategy, as previously announced, the Company has entered into contract manufacturing agreements with Provident Pharmaceuticals and Humacology to manufacture 5,020,000 units of medicines and up to 500,000 CBD units, respectively, bringing the potential total order book to 5,520,000 units. These agreements are poised to be highly profitable due to the high margins in the Company's contract manufacturing business, with minimal costs, including raw materials, as the majority are covered by clients.
Additionally, these agreements will occupy less than 20% of the Company's existing capacity, positioning the Company favorably for pursuing additional contracts. The Company expects to generate gross profit exceeding $10 million annually at full capacity following the Phase I upgrades. The Company is actively pursuing several additional contract manufacturing agreements and will provide updates accordingly. Upon achieving full capacity, the Company will evaluate opportunities for a Phase II expansion plan, further enhancing capacity and increasing profitability potential.
Greg Siokas, CEO of Cosmos Health, stated: "We are extremely pleased with our recently announced agreements with Provident and Humacology and are diligently working to scale up our CMO business. Given our increased capacity following strategic investments in upgrading our facilities and the extremely high margins associated with this segment, we are positioned to generate more than $10 million in annual gross profit. This lucrative and growing segment of Cosmos has tremendous potential and will be a key driver in our journey toward sustained profitability."
About Cosmos Health Inc.
Cosmos Health Inc. (Nasdaq:COSM), incorporated in 2009 in Nevada, is a diversified, vertically integrated global healthcare group. The Company owns a portfolio of proprietary pharmaceutical and nutraceutical brands, including Sky Premium Life®, Mediterranation®, bio-bebe® and C-Sept®. Through its subsidiary Cana Laboratories S.A., licensed under European Good Manufacturing Practices (GMP) and certified by the European Medicines Agency (EMA), it manufactures pharmaceuticals, food supplements, cosmetics, biocides, and medical devices within the European Union. Cosmos Health also distributes a broad line of pharmaceuticals and parapharmaceuticals, including branded generics and OTC medications, to retail pharmacies and wholesale distributors through its subsidiaries in Greece and the UK. Furthermore, the Company has established R&D partnerships targeting major health disorders such as obesity, diabetes, and cancer, enhanced by artificial intelligence drug repurposing technologies, and focuses on the R&D of novel patented nutraceuticals, specialized root extracts, proprietary complex generics, and innovative OTC products. Cosmos Health has also entered the telehealth space through the acquisition of ZipDoctor, Inc., based in Texas, USA. With a global distribution platform, the Company is currently expanding throughout Europe, Asia, and North America, and has offices and distribution centers in Thessaloniki and Athens, Greece, and in Harlow, UK. More information is available at www.cosmoshealthinc.com, www.skypremiumlife.com, www.cana.gr, www.zipdoctor.co, as well as LinkedIn and X.
Forward-Looking Statements
With the exception of the historical information contained in this news release, the matters described herein, may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Statements preceded by, followed by, or that otherwise, include the words "believes," "expects," "anticipates," "intends," "projects," "estimates," "plans" and similar expressions or future or conditional verbs such as "will," "should," "would," "may" and "could", are generally forward-looking in nature and not historical facts, although not all forward-looking statements include the foregoing. These statements, involve unknown risks and uncertainties that may individually or materially impact the matters discussed, herein for a variety of reasons that are outside the control of the Company, including, but not limited to, the Company's ability to raise sufficient financing to implement its business plan, the impact of the COVID-19 pandemic and the war in Ukraine, on the Company's business, operations and the economy in general, and the Company's ability to successfully develop and commercialize its proprietary products and technologies. Readers are cautioned not to place undue reliance on these forward- looking statements, as actual results could differ materially from those described in the forward-looking statements contained herein. Readers are urged to read the risk factors set forth in the Company's filings with the SEC, which are available at the SEC's website (www.sec.gov). The Company disclaims any intention or obligation to update, or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
Investor Relations Contact:
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cosm@bdgcommunications.com
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SOURCE: Cosmos Health Inc.
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