Cosmos Health secures new pharma manufacturing deals By Investing.com

CHICAGO – Cosmos Health Inc. (NASDAQ:COSM), a global healthcare group, announced today that its subsidiary, Cana Laboratories, has expanded its contract manufacturing portfolio with additional agreements with Provident Pharmaceuticals. The new contracts involve the production of several pharmaceutical products, including 408,000 units of MIOREL, 222,000 units of CALCIFOLIN, and 72,000 units of DEXA-DOSE.

This announcement follows a previous agreement, disclosed on July 3, 2024, where Cana Laboratories was contracted to manufacture 4.32 million units of DE3-SOLE, a treatment for vitamin D deficiency. With the latest order, the total volume of products to be manufactured for Provident now stands at 5.02 million units.

Greg Siokas, CEO of Cosmos Health, expressed confidence in the ability of Cana’s contract manufacturing division to scale up and secure further high-margin contracts, indicating a positive outlook for the company’s cash flows.

Cosmos Health, established in 2009, manages a diverse range of healthcare-related undertakings, including proprietary pharmaceutical and nutraceutical brands, manufacturing and distribution of healthcare products, and operation of a telehealth platform. Its manufacturing subsidiary, Cana Laboratories, adheres to European Good Manufacturing Practices and is certified by the European Medicines Agency.

The company’s expansion efforts encompass R&D partnerships aimed at addressing major health disorders, with a focus on leveraging artificial intelligence for drug repurposing technologies. Cosmos Health is also actively engaged in the development of patented nutraceuticals, complex generics, and innovative over-the-counter products.

The information in this article is based on a press release statement from Cosmos Health Inc. Readers should note that forward-looking statements in the press release involve risks and uncertainties that could cause actual results to differ materially from those projected. These statements are not guarantees of future performance and are subject to various factors outside the company’s control.

In other recent news, Cosmos Health Inc. has been making significant strides in expanding its global presence. The healthcare group’s subsidiary, Cana Laboratories, has secured a contract manufacturing agreement with Australia’s Humacology, marking the second major contract for Cosmos Health in a short span.

This agreement follows closely after Cosmos Health’s deal with Provident Pharmaceuticals, highlighting the company’s focus on expanding its high-margin contract manufacturing business.

Moreover, Cosmos Health has strengthened its strategic collaboration with C.A. Papaellinas Group in Cyprus, aiming to boost the distribution of its Sky Premium Life products. The company has also announced an exclusive distribution agreement with Pharmalink to market its Sky Premium Life products in the United Arab Emirates.

However, Cosmos Health has recently received multiple delinquency notices from Nasdaq for failing to submit its annual and quarterly reports on time. The company’s CEO, Greg Siokas, has stated that Cosmos Health is committed to rectifying the situation and plans to submit a definitive compliance plan to Nasdaq soon.

Despite these compliance issues, the trading of Cosmos Health’s shares on the Nasdaq exchange remains unaffected. These are recent developments, and it will be interesting to see how the company navigates these compliance challenges.

InvestingPro Insights

In light of the recent contract manufacturing expansion by Cosmos Health Inc. (NASDAQ:COSM), it’s crucial to consider the company’s financial health and market performance. According to InvestingPro data, Cosmos Health currently has a market capitalization of 23.58 million USD, which is reflective of the company’s size within the healthcare sector.

Despite the positive news, the company’s P/E ratio stands at -0.19, and when adjusted for the last twelve months as of Q3 2023, it drops further to -0.48, indicating that investors are concerned about the company’s profitability.

InvestingPro Tips suggest that while the stock has seen significant returns over the past week, month, and three months, with price total returns of 8.53%, 90.92%, and 130.38% respectively, the company is quickly burning through cash and suffers from weak gross profit margins of only 7.17%. The RSI suggests that the stock is in overbought territory, which could signal a potential pullback in the near future.

Investors should keep in mind that Cosmos Health does not pay a dividend and has been unprofitable over the last twelve months. However, it is worth noting that the company’s liquid assets exceed its short-term obligations, which may provide some financial stability. For those considering investing in Cosmos Health, it’s recommended to review additional InvestingPro Tips available at https://www.investing.com/pro/COSM. There are 11 more tips listed that could help inform a more comprehensive investment decision.

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