Cosmos Health begins US manufacturing with DolCas Biotech

CHICAGO - Cosmos Health Inc. (NASDAQ:COSM), currently trading at $0.46 with a market cap of $12 million, announced Tuesday its entry into the U.S. market through a strategic agreement with New Jersey-based DolCas Biotech LLC to manufacture nutraceutical products at GMP-certified facilities in the United States. According to InvestingPro analysis, the company appears undervalued based on its Fair Value calculations.

The agreement allows Cosmos Health to expand beyond its European manufacturing base, potentially reducing tariff exposure and cross-border logistical risks while enhancing production control, according to the company’s press release statement. This expansion comes as the company faces challenges with a gross profit margin of 9.4% and significant cash burn, as revealed by InvestingPro data.

DolCas Biotech, a developer and manufacturer of clinically studied nutraceutical ingredients, will produce Cosmos Health’s products at its U.S. facilities. The partnership aims to strengthen Cosmos Health’s position in the premium nutraceuticals market.

"We are proud to reach this important milestone as we commence production in the United States through our agreement with DolCas Biotech," said Greg Siokas, CEO of Cosmos Health.

K. Gnaneshwar Rao, CEO at DolCas Biotech, expressed enthusiasm about the partnership: "We are thrilled to partner with Cosmos and are eager to build on this collaboration with a wide range of innovative products that will benefit both companies."

Cosmos Health, a vertically integrated healthcare group listed on Nasdaq, owns several proprietary pharmaceutical and nutraceutical brands including Sky Premium Life, Mediterranation, and bio-bebe. With annual revenue of $53.5 million and a debt-to-equity ratio of 0.5, the company currently operates manufacturing facilities in Europe through its subsidiary Cana Laboratories S.A., which is licensed under European Good Manufacturing Practices and certified by the European Medicines Agency. Subscribers to InvestingPro can access 8 additional key insights about the company’s financial health and growth prospects.

The financial terms of the agreement were not disclosed in the company’s announcement.

In other recent news, Cosmos Health Inc. has been granted a 180-day extension by Nasdaq to meet the minimum bid price requirement, with a new deadline set for November 3, 2025. This extension follows the company’s continuous compliance with other Nasdaq listing standards, aside from the bid price rule. Additionally, Cosmos Health’s CEO, Greg Siokas, has increased his stake in the company by purchasing 1,466,764 common shares for $526,000, bringing his total ownership to over 5.5 million shares. This move underscores his confidence in the company’s future prospects and commitment to shareholder value.

Cosmos Health has also secured a contract manufacturing agreement with Pharmex S.A. through its subsidiary Cana Laboratories, to produce 300,000 bottles annually of the antiseptic drug AMBITASOL 1L. This contract is expected to enhance revenue generation over a five-year period. Furthermore, the company is expanding its market presence in Albania by launching its Sky Premium Life food supplements brand in partnership with Pharma Cell, with an initial order valued at $300,000. These developments reflect Cosmos Health’s strategic efforts to expand its global reach and strengthen its product offerings in various markets.

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