Business
Cosmos Health Enters into Binding Letter of Intent for the Acquisition of Docpharm GmbH., an Established German Pharmaceutical Distributor; Expected to Boost Our Annual Revenue by Approximately €32M, or 70%, by the End of 2025 vs FY 2022.
CHICAGO, IL / ACCESSWIRE / May 25, 2023 / Cosmos Health Inc. ("Cosmos Health" or "the Company") (NASDAQ:COSM), a global healthcare group with proprietary
About this update from Cosmos Health Inc.
[{"type":"text","content":"CHICAGO, IL / ACCESSWIRE / May 25, 2023 / Cosmos Health Inc. (\"Cosmos Health\" or \"the Company\") (NASDAQ:COSM), a global healthcare group with proprietary lines of nutraceuticals and distributor of pharmaceuticals, branded generics, OTC medications and medical devices, announced today that it has executed a binding Letter of Intent (LOI) to acquire all of the outstanding shares of Docpharm GmbH. (\"Docpharm\"), an established pharmaceutical distributor based in Germany.Established in 1995, Docpharm is an ISO-certified and licensed under GDP (Good Distribution Practices) pharmaceutical company that imports and distributes medicines, pharmaceutical products, and medical devices. Docpharm holds a wholesaler license issued by the local government of Baden-Württemberg, Germany, and owns over 2,000 import licenses, including both EMA and national approvals, for a wide range of medicinal products and medical devices, enabling the company to engage in the distribution business of pharmaceutical products within Germany.Docpharm strategically sources and imports EU medicines from various European countries, capitalizing on their comparatively lower price levels. These medicines are subsequently repackaged and introduced into the German market, playing a crucial role in maintaining an affordable supply of medicines. Docpharm primarily engages with wholesalers and also has a secondary distribution channel directly to pharmacies. Docpharm's customers include some of the largest players in the German market, including Sanacorp, Noweda, GEHE, Alliance Healthcare and Phoenix.In 2022, Docpharm achieved unaudited revenue of €6.8 million, followed by revenue of €3.2 million in the first quarter of 2023. Looking ahead, projections indicate substantial growth for Docpharm, with estimated revenues of €11.8 million, €24.6 million, and €32.4 million for the years 2023, 2024, and 2025, respectively. These projections entail an impressive compound annual growth rate (CAGR) of approximately 68%.In addition to covering the acquisition price, Cosmos Health will provide additional financing to support the growth and working capital requirements of Docpharm during its next expansion phase. This funding will ensure that Docpharm is adequately equipped to capitalize on the significant potential of the German wholesale market. It is projected that this market...