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ACCESSWIRE 25-May-2023 11:22 AM
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 will achieve a healthy CAGR of 3.26%, surpassing a turnover of $180 billion by 2027.
Greg Siokas, Chief Executive Officer of Cosmos Health, stated: "We are extremely excited to have successfully concluded this binding LOI for the acquisition of Docpharm. This transaction is a testament to our commitment to creating value for our shareholders and sustainably growing our business through M&A and organic growth. Docpharm is another important milestone that will help us significantly accelerate our international growth plans and is expected to contribute more than €32 million annual revenue by the end of 2025, or approximately $35 million based on today's exchange rate. In other words, this acquisition alone is expected to boost our annual revenue by approximately 70% compared to FY 2022.
The German market is highly lucrative, and the acquisition of Docpharm will not only help us diversify our business but also establish a strong platform for expanding further into the central and western European market, including growing our own branded nutraceuticals. Docpharm has established strong relationships with key industry leaders in the German market, opening up new avenues for our business, including valuable insights and synergies.
To put everything into perspective, with the acquisition of Docpharm and through our other existing wholly-owned subsidiaries, Cosmos Health has developed a strong strategic network of regional hubs. In Greece, through CosmoFarm S.A. and Sky Pharm S.A., we have facilities that can serve the southeastern European market. In England, through Decahedron Ltd, we have facilities that can serve the UK market. And now in Germany, through Docpharm, we will have facilities that can serve the central western European market. At the same time, we are also actively seeking additional facilities to expedite our expansion into the North American market.
Over the years, we have cultivated significant expertise, always striving to add value for shareholders by adhering to our stringent investment criteria. Our objective is to secure deals that are not only advantageous in terms of price but also align with our existing operations, strategy, vision and business plan. We continuously raise the bar to attain the most favorable outcomes but we are not stopping here. Our balance sheet remains robust, our management team is fully committed, and we consistently seek new opportunities to expand our Company and enhance shareholder value. We will continue executing our M&A plan, as we have an extensive pipeline of additional deals under consideration. We are optimistic about announcing further acquisitions in the forthcoming months. The best is yet to come!"
About Cosmos Health, Inc
Cosmos Health Inc. (NASDAQ:COSM) is a global healthcare group that was incorporated in 2009 and is headquartered in Chicago, Illinois. Cosmos Health is engaged in the nutraceuticals sector through its own proprietary lines of products "Sky Premium Life" and "Mediterranation." Additionally, the Company is operating in the pharmaceutical sector through the provision of a broad line of branded generics and OTC medications and is involved in the healthcare distribution sector through its subsidiaries in Greece and UK serving retail pharmacies and wholesale distributors. Cosmos Health is strategically focused on the R&D of novel patented nutraceuticals (IP) and specialized root extracts as well as on the R&D of proprietary complex generics and innovative OTC products. Cosmos has developed a global distribution platform and is currently expanding throughout Europe, Asia and North America. Cosmos Health has offices and distribution centers in Thessaloniki and Athens, Greece and Harlow, UK. More information is available at www.cosmoshealthinc.com and www.skypremiumlife.com.
With the exception of the historical information contained in this news release, the matters described herein, may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Statements preceded by, followed by, or that otherwise, include the words "believes," "expects," "anticipates," "intends," "projects," "estimates," "plans" and similar expressions or future or conditional verbs such as "will," "should," "would," "may" and "could", are generally forward-looking in nature and not historical facts, although not all forward-looking statements include the foregoing. These statements, involve unknown risks and uncertainties that may individually or materially impact the matters discussed, herein for a variety of reasons that are outside the control of the Company, including, but not limited to, the Company's ability to raise sufficient financing to implement its business plan, the impact of the COVID-19 pandemic and the war in Ukraine, on the Company's business, operations and the economy in general, and the Company's ability to successfully develop and commercialize its proprietary products and technologies. Readers are cautioned not to place undue reliance on these forward- looking statements, as actual results could differ materially from those described in the forward-looking statements contained herein. Readers are urged to read the risk factors set forth in the Company's filings with the SEC, which are available at the SEC's website (www.sec.gov). The Company disclaims any intention or obligation to update, or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
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SOURCE: Cosmos Health Inc.