Cosmos Health Further Expands Facility Upgrades Program at Cana Laboratories and Signs 5-Year Contract Manufacturing Agreement with Pharmex for 1.5 Million Bottles of the Antiseptic Drug AMBITASOL 1L

Rhea-AI Summary

Cosmos Health (NASDAQ:COSM) announces completion of manufacturing upgrades at its subsidiary Cana Laboratories and signs a significant 5-year contract manufacturing agreement with Pharmex S.A. The deal involves producing 300,000 bottles annually of the antiseptic drug AMBITASOL 1L, totaling 1.5 million units over the contract period.

Cana Laboratories, acquired by Cosmos Health in July 2023, operates an Athens facility licensed under European Good Manufacturing Practices (GMP) and certified by the European Medicines Agency (EMA). The facility can manufacture various pharmaceuticals including tablets, capsules, syrups, nasal sprays, creams, gels, antiseptics, and biocides.

This agreement with Pharmex, a specialty pharmaceutical company established in 1981, represents part of Cosmos Health's strategy to expand its high-margin contract manufacturing business.

Positive

• Secured 5-year manufacturing contract for 1.5 million units of AMBITASOL
• Expansion of high-margin contract manufacturing business
• Completed facility upgrades at GMP-certified and EMA-licensed manufacturing plant
• Diversified manufacturing capabilities across multiple pharmaceutical forms

Negative

• None.

Insights

Pharmaceutical Manufacturing Analyst

Cosmos Health's expansion of manufacturing capabilities at Cana Laboratories represents a strategic pivot toward vertical integration in their business model. The completion of facility upgrades at an EMA-certified, GMP-compliant manufacturing facility creates significant operational leverage, allowing the company to capitalize on both proprietary and contract manufacturing opportunities.

The 5-year agreement with Pharmex for 1.5 million units of AMBITASOL demonstrates validation of Cana's manufacturing capabilities by an established industry player (operating since 1981). This type of long-duration contract provides valuable revenue predictability and facility utilization, critical factors in pharmaceutical manufacturing where fixed costs typically run high.

Most importantly, this move positions Cosmos to capture higher margins by controlling more of their value chain while simultaneously monetizing excess capacity through third-party manufacturing. The diversified manufacturing capabilities (tablets, capsules, syrups, nasal sprays, creams, gels, antiseptics, and biocides) creates multiple revenue opportunities beyond this initial contract.

The timing is particularly noteworthy—completing the acquisition in July 2023, implementing facility upgrades, and now securing manufacturing contracts suggests efficient execution on their integration strategy. While the financial terms remain undisclosed, positioning this as "high-margin" business aligns with industry norms for contract manufacturing, which typically generates stronger margins than distribution-only models in pharmaceutical value chains.

Financial Analyst

This manufacturing agreement represents a significant positive development for Cosmos Health from a financial perspective. The 5-year timeframe provides revenue visibility and stability that enhances the company's financial planning capabilities and potentially improves investor confidence.

The contract for 300,000 bottles annually creates a meaningful recurring revenue stream that complements Cosmos's existing business lines. While the dollar value isn't disclosed, pharmaceutical contract manufacturing typically commands strong margins, supporting the CEO's characterization as "high-margin." This helps diversify revenue sources beyond their core distribution business.

Most significantly, this agreement validates Cosmos's investment thesis in Cana Laboratories, demonstrating that capital expenditures for facility upgrades are beginning to yield commercial returns. The company appears to be transitioning from an investment phase to a revenue generation phase for this asset.

The ability to secure long-term production agreements suggests Cosmos may be able to replicate this model with additional clients, potentially creating a multiplier effect on returns from their manufacturing infrastructure. This vertical integration strategy optimizes facility utilization while providing margin-accretive revenue streams.

For a company with Cosmos's market cap ($8.5 million), securing long-term contracts helps establish commercial stability while the GMP certification and expanded manufacturing capabilities create strategic optionality for future growth initiatives in higher-value pharmaceutical products.

CHICAGO, April 09, 2025 (GLOBE NEWSWIRE) -- 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 latest upgrades to its manufacturing capabilities and capacity, and has secured a long-term, five-year contract manufacturing agreement with Pharmex S.A. (“Pharmex”) for the annual production of 300,000 bottles of the antiseptic drug AMBITASOL 1L, totaling 1,500,000 units over the duration of the agreement.

Pharmex, established in 1981, is a privately held specialty pharmaceutical company focused on the commercialization and marketing of medicinal products, antiseptics, dermocosmetics, and medical devices in targeted therapeutic areas such as dermatology, ophthalmology, and pediatrics.

Cosmos Health completed its acquisition of Cana in July 2023 and has since invested in upgrading Cana’s Athens facility, which is licensed under European Good Manufacturing Practices (GMP) and certified by the European Medicines Agency (EMA), laying the foundation for future growth. As a result, Cana is now ramping up revenue generation from manufacturing its own products as well as those of third parties. Cana’s facilities can accommodate a wide range of pharmaceuticals, including tablets, capsules, syrups, nasal sprays, creams, gels, antiseptics, and biocides. In line with this strategy, the Company has entered into the aforementioned contract manufacturing agreement with Pharmex to support its growth aspirations.

Greg Siokas, CEO of Cosmos Health, stated: "We are pleased to continue scaling our high-margin contract manufacturing business at Cana through our collaboration with Pharmex. We look forward to securing additional agreements that will further expand our client base, strengthen cash flows, and drive 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®, C-Sept® and C-Scrub®. 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, www.cloudscreen.gr, 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 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:
BDG Communications
cosm@bdgcommunications.com
+44 207 0971 653

FAQ

What is the value of the new manufacturing contract between COSM and Pharmex?

The contract involves manufacturing 300,000 bottles of AMBITASOL 1L annually for 5 years, totaling 1.5 million units.

What manufacturing capabilities does COSM's Cana Laboratories facility have?

Cana's Athens facility is EMA-certified and GMP-licensed, capable of manufacturing tablets, capsules, syrups, nasal sprays, creams, gels, antiseptics, and biocides.

When did Cosmos Health acquire Cana Laboratories?

Cosmos Health acquired Cana Laboratories in July 2023.

What product will COSM manufacture for Pharmex under the new agreement?

COSM will manufacture the antiseptic drug AMBITASOL 1L for Pharmex.