CHICAGO - Cosmos Health Inc. (NASDAQ:COSM), a global healthcare group, announced today an extension to its exclusive distribution agreement with Virax Biolabs (NASDAQ:VRAX) to commercialize mpox virus detection kits in the Gulf Cooperation Council (GCC) countries. This agreement expands upon the company's existing distribution rights in Greece and Cyprus and non-exclusive rights throughout Europe.
The distribution deal authorizes Cosmos Health to import, sell, and distribute Virax-branded mpox Virus Nucleic Acid Detection Kits in Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the United Arab Emirates. These rt-PCR detection kits, which have been CE-marked for sale in Europe and authorized by the UK's Medicines and Healthcare products Regulatory Agency (MHRA), boast a sensitivity of 96.7% and specificity of 93.72%, with results available in under 70 minutes.
The announcement comes after the World Health Organization's declaration of the mpox outbreak as a public health emergency of international concern on August 14, 2024. The virus has spread beyond Africa to Europe and Asia, raising global health concerns.
CEO of Cosmos Health, Greg Siokas, expressed enthusiasm about strengthening the partnership with Virax, highlighting the company's readiness to support public health efforts in Europe and the Gulf countries with rapid detection and response capabilities.
Virax Biolabs CEO, James Foster, also welcomed the deepened partnership, emphasizing the importance of equipping healthcare professionals with essential tools to diagnose and manage the spread of the mpox virus.
Cosmos Health, incorporated in 2009, operates a vertically integrated healthcare business with a portfolio of pharmaceutical and nutraceutical brands, manufacturing facilities in the European Union, and a distribution network that extends to retail pharmacies and wholesale distributors. The company also engages in R&D partnerships and has ventured into the telehealth space through the acquisition of ZipDoctor, Inc.
Virax Biolabs Group Limited is a biotechnology company focusing on the detection of viral diseases and is currently developing T-Cell-based test technologies to provide an immunology profiling platform.
This expansion of the distribution agreement is based on a press release statement and aims to improve the availability of diagnostic tools in the fight against the mpox virus in the GCC region.
In other recent news, Cosmos Health Inc. regained compliance with Nasdaq's Listing Rule 5250(c)(1) after submitting overdue reports, as per recent announcements. The company has also secured the rights to distribute mpox virus PCR detection kits in Europe, a significant development given the recent outbreak. Additionally, Cosmos Health has initiated sales of its C-Scrub product in the German market and has announced a distribution partnership with ProMed Trading Company for the Sky Premium Life supplement range in Qatar.
The company's subsidiary, Cana Laboratories, has completed the first phase of manufacturing upgrades, potentially generating over $10 million in annual gross profit at full capacity by 2025. Cosmos Health has also secured contracts with Provident Pharmaceuticals for the production of several pharmaceutical products, totaling 5.02 million units. Despite these positive developments, Cosmos Health has faced compliance issues with Nasdaq due to delayed report submissions, which the company is committed to rectifying. These are recent developments in Cosmos Health's journey.
InvestingPro Insights
As Cosmos Health Inc. (NASDAQ:COSM) extends its distribution agreement for mpox virus detection kits, it's important for investors to consider the company's financial health and market performance. According to InvestingPro data, Cosmos Health currently has a market capitalization of $17.07 million. Despite its efforts in expanding distribution rights, the company is facing financial challenges, as reflected by a negative P/E ratio of -0.51, indicating that it is not generating profit relative to its share price.
The company's revenue for the last twelve months as of Q2 2024 stands at $56.45 million, with a growth of 15.73%. However, its gross profit margin during the same period is relatively low at 8.05%, which aligns with one of the InvestingPro Tips highlighting the company's weak gross profit margins. Additionally, the company's stock price has experienced significant volatility, with a 45.75% return over the last three months but a decline of 30.81% over the past year.
InvestingPro Tips suggest that Cosmos Health operates with a significant debt burden and is quickly burning through cash. These factors, combined with the analysts' anticipation that the company will not be profitable this year, could be crucial for investors to monitor. For further insights, InvestingPro offers additional tips on Cosmos Health, which can be found at: https://www.investing.com/pro/COSM.
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