Business
Cosmos Health Updates on Contract Manufacturing Division; Completes Phase I of Production Capacity Expansion, Positioned to Generate Over $10M in Annual Gross Profit at Full Capacity
CHICAGO, IL / ACCESSWIRE / July 24, 2024 / Cosmos Health Inc. ("Cosmos Health" or the "Company'') (NASDAQ:COSM), a diversified, vertically integrated global
About this update from Cosmos Health Inc.
[{"type":"text","content":"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 ...