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Cosmos Health secures Qatar distribution deal

EditorNatashya Angelica
Published 07/25/2024, 11:58 AM
COSM
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CHICAGO - Cosmos Health Inc. (NASDAQ:COSM), a global healthcare group, has announced a distribution partnership with ProMed Trading Company for the Sky Premium Life supplement range in Qatar. The agreement, effective immediately, will see ProMed manage all aspects of distribution and sales in the local market, including regulatory compliance and product registration.

As a leading healthcare provider in Qatar, ProMed will distribute the Sky Premium Life products through pharmacies and stores throughout the country. This deal is part of Cosmos Health's broader strategy to expand its market presence in the Middle East, following similar agreements in the UAE and Eastern Europe.

The dietary supplements market in the Middle East and Southeast Asia is experiencing significant growth, with a projected increase from $17.04 billion in 2023 to $30.72 billion by 2031, at a compound annual growth rate (CAGR) of 7.6%. This expansion is attributed to heightened health awareness, diverse supplement offerings in retail, and rising disposable incomes.

Greg Siokas, CEO of Cosmos Health, expressed enthusiasm about the new partnership, viewing it as a reflection of the company's quality products and global brand demand. He emphasized the strategic nature of the agreement in tapping into the burgeoning Qatari market.

Cosmos Health, founded in 2009, is a diverse healthcare entity that owns proprietary pharmaceutical and nutraceutical brands. It operates under European Good Manufacturing Practices (GMP) and is certified by the European Medicines Agency (EMA). The company's portfolio includes pharmaceuticals, food supplements, and medical devices, with a focus on innovative R&D and artificial intelligence-enhanced drug repurposing.

The information in this article is based on a press release statement from Cosmos Health Inc. and does not include any speculative or promotional content. The company's forward-looking statements are subject to various risks, including the potential impact of external events such as the COVID-19 pandemic and geopolitical developments.

In other recent news, Cosmos Health Inc., a global healthcare group, has been making significant strides in its operations. The company's subsidiary, Cana Laboratories, has inked a manufacturing agreement with Australia's Humacology, marking its second major contract in quick succession. This move underscores Cosmos Health's intent to expand its high-margin contract manufacturing business.

In parallel, 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 projects sales to surpass 150,000 units over the next twelve months due to increased pharmacy penetration.

Moreover, Cosmos Health has secured an exclusive distribution agreement with Pharmalink to market its Sky Premium Life products in the United Arab Emirates. The deal, which includes a first purchase order for 130,000 units, is expected to result in over 500,000 units in sales within the first year.

Still, the company has also received two delinquency notices from Nasdaq for failing to submit its annual and quarterly reports on time. CEO Greg Siokas has expressed the company's commitment to rectifying the situation, indicating plans to submit a definitive compliance plan to Nasdaq soon. These are recent developments in Cosmos Health's journey, highlighting both the company's growth trajectory and the importance of timely financial filings.

InvestingPro Insights

In the context of Cosmos Health Inc.'s (NASDAQ:COSM) latest distribution partnership with ProMed Trading Company, it is essential for investors to consider the financial health and stock performance of the company.

According to InvestingPro data, Cosmos Health has a market capitalization of 20.38 million USD, reflecting its size within the healthcare sector. Despite the company's efforts to expand its market presence, it's worth noting that Cosmos Health has been navigating financial challenges, with a negative P/E ratio of -0.19 as of Q3 2023, and an even lower adjusted P/E ratio of -0.41 for the same period.

Moreover, the company's gross profit margin stands at 7.17% for the last twelve months as of Q3 2023, which aligns with one of the InvestingPro Tips highlighting weak gross profit margins. This could be a critical factor for investors to consider, as it may influence the company's ability to generate profits from its sales. Another notable InvestingPro Tip is the company's stock price volatility. In recent times, Cosmos Health has experienced a strong return over the last month, with a 90.94% increase, and an even more impressive return over the last three months, at 134.09%.

While these returns may catch the eye of potential investors, it's important to balance this with the recognition that the company has not been profitable over the last twelve months and does not pay a dividend to shareholders. For those interested in a more in-depth analysis, there are additional InvestingPro Tips available, which can be accessed on the InvestingPro platform. For a more detailed investment strategy and further insights, use coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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