Contract manufacturing pipeline surpasses $20 million in implied revenue at wholly owned subsidiary Cana Laboratories, representing over $18 million in implied gross profit across the life of agreements
Gross margins of over 90% - among the highest-margin revenue streams in the Company, with raw materials largely supplied by clients
Record production pipeline of more than 32.7 million units, up approximately sixfold since mid-2024 and close to threefold since the start of this year, with 7.7 million units added in September alone
Diversified across 11 therapeutic categories, reducing dependence on any single product or partner, under multi-year agreements averaging approximately four years, with certain contracts extending up to ten years
Ongoing investment program underway to take Cana to the next level of capacity and capability, as the division scales toward its target of over $10 million in recurring annual gross profit
Supports the Company's 2029 guidance targets of $200.6 million in revenue and $71.2 million in gross profit, with high-margin contract manufacturing a key driver of the planned margin expansion

CHICAGO, IL / ACCESS Newswire / September 28, 2026 / Cosmos Health Inc. ("Cosmos Health" or the "Company") (NASDAQ:COSM), a diversified, vertically integrated global healthcare group, today announced that the contract manufacturing ("CMO") pipeline of its wholly owned subsidiary, Cana Laboratories S.A. ("Cana"), has surpassed $20 million in implied revenue over the life of the underlying agreements, representing over $18 million in implied gross profit at gross margins of over 90%, as the production pipeline reaches a record of more than 32.7 million units.

The CMO pipeline is spread across agreements with an average duration of approximately four years, with certain contracts extending up to ten years. Implied revenue and implied gross profit are therefore aggregate amounts realized over that period as orders are placed, rather than annual figures. On that basis the current pipeline equates to approximately $5 million in implied annual revenue and approximately $4.5 million in implied annual gross profit, reflecting production volumes secured to date. As the pipeline continues to grow, the division is working toward its target of over $10 million in recurring annual gross profit at full capacity.

A Record CMO Pipeline, Growing Rapidly

Cana's CMO pipeline has grown approximately sixfold since mid-2024. The pace has accelerated through 2026: the CMO pipeline has close to tripled since the start of the year, rising 31% since June and adding 7.7 million units in September alone across two new long-term agreements. As new agreements are signed, implied revenue is expected to continue growing.

The graph below illustrates the growth of Cana's CMO production pipeline. Each figure represents the aggregate units expected to be produced over the remaining duration of the CMO agreements in place at that date, which extend up to ten years.

High-Margin, Recurring Cash Flow

Contract manufacturing operates on a structurally high-margin model. Under the majority of Cana's agreements, clients supply raw materials, with Cana providing manufacturing capacity, regulatory expertise and quality assurance. The current CMO pipeline represents over $20 million in implied revenue over the life of the underlying agreements, carrying gross margins of over 90% - materially above the Company's consolidated gross margin. Implied revenue and implied gross profit are management estimates derived from the existing CMO pipeline over the expected duration of the underlying agreements, which average approximately four years, based on current gross margins. They are aggregate amounts over the full life of those agreements and are not annual figures. They do not represent recognized revenue or GAAP profit, and actual realized amounts may differ based on order timing and mix.

The Company views contract manufacturing as a high-margin, recurring-revenue segment that provides strong, long-term cash flow visibility with established partners.

Diversified Across Partners, Formats and Therapeutic Categories

The CMO pipeline has been built across agreements with multiple pharmaceutical and wellness partners, comprising various formats including vials, packs, bottles, capsules and pessaries, under multi-year terms extending up to ten years.

It spans 11 therapeutic categories, including central nervous system, musculoskeletal, dermatological, vitamin, anti-inflammatory, oncology-support, women's health, antiseptic, wellness, cardiovascular and anti-infective, reducing dependence on any single product or partner.

Investment and Expertise Paying Off

Cana operates its wholly owned, 54,000-square-foot Athens manufacturing facility, licensed under European Good Manufacturing Practices (GMP) and certified by the European Medicines Agency (EMA), enabling it to produce pharmaceuticals, food supplements, cosmetics, biocides and medical devices for the European Union and international markets.

The Company has invested approximately $5.5 million in upgrading and modernizing the facility - including new machinery, equipment, IT infrastructure and quality management systems - and recently inaugurated a new, state-of-the-art ACG capsule-filling production line that further expands its capabilities and capacity.

Central to the Vertically Integrated Model

Contract manufacturing is a central element of Cosmos Health's vertically integrated model. The same EU-licensed facility that produces the Company's proprietary pharmaceutical and nutraceutical brands also provides contract manufacturing services to third-party partners, allowing Cosmos Health to maximize facility utilization, spread fixed costs across a larger production base, and generate incremental high-margin revenue while retaining control over the quality, cost and supply of its own products.

Scaling Toward Over $10 Million in Recurring Annual Gross Profit

With current agreements using only a portion of available capacity, the Company continues to pursue additional contracts and is evaluating further expansion. The division continues to scale toward its previously disclosed target of over $10 million in recurring annual gross profit at full capacity.

Further investments are in the works as part of an ongoing program to take Cana to the next level, expanding capacity and capabilities to support continued growth in production volumes.

The growth of the contract manufacturing division is an important component of the Company's 2029 guidance targets of $200.6 million in revenue and $71.2 million in gross profit. As a high-margin business, contract manufacturing is expected to be a key driver of the planned expansion in the Company's consolidated gross margin.

Management Commentary

Greg Siokas, CEO of Cosmos Health, stated: "Cana is now one of the most valuable parts of Cosmos Health - integral to our diversified, vertically integrated business model and central to how we reach our 2029 targets. Two years ago this was a facility with underused capacity. Today its production pipeline represents over $20 million in implied revenue and over $18 million in implied gross profit at margins over 90%, spread over agreements averaging approximately four years, and it has grown sixfold since mid-2024 to more than 32.7 million units - and it is still accelerating.

"This did not happen by luck. We invested in the licenses, the people and the equipment to bring Cana to a standard that established pharmaceutical companies demand, and they responded by entrusting us with the production of their medicines and products across eleven therapeutic categories. That is not a one-time deal - it potentially represents years of recurring, high-margin cash flow visibility. The economics speak for themselves: our partners supply the materials, we supply the capacity and the expertise, and over 90 cents of every incremental dollar is expected to drop to gross profit.

"On the agreements signed to date, that pipeline equates to roughly $4.5 million in gross profit a year. Our target is over $10 million in recurring annual gross profit at full capacity, and every new agreement closes that gap. We are not finished - further investment is already underway to take Cana to the next level of capacity. We believe Cana is a direct, tangible driver of our 2029 targets of $200.6 million in revenue and $71.2 million in gross profit, and deserves far more attention."

About Cosmos Health Inc.

Cosmos Health Inc. (NASDAQ:COSM), incorporated in 2009 in Nevada, is a diversified, vertically integrated global healthcare group. The Company owns a portfolio of proprietary pharmaceutical and nutraceutical brands, including Sky Premium Life^®, Mediterranation^®, bio-bebe^®, C-Sept^® and C-Scrub^®. Through its subsidiary Cana Laboratories S.A., licensed under European Good Manufacturing Practices (GMP) and certified by the European Medicines Agency (EMA), it manufactures pharmaceuticals, food supplements, cosmetics, biocides, and medical devices within the European Union. Cosmos Health also distributes a broad line of pharmaceuticals and parapharmaceuticals, including branded generics and OTC medications, to retail pharmacies and wholesale distributors through its subsidiaries in Greece and the UK. Furthermore, the Company has established R&D partnerships targeting major health disorders such as obesity, diabetes, and cancer, enhanced by artificial intelligence drug repurposing technologies, and focuses on the R&D of novel patented nutraceuticals, specialized root extracts, proprietary complex generics, and innovative OTC products. Cosmos Health has also entered the telehealth space through the acquisition of ZipDoctor, Inc., based in Texas, USA. With a global distribution platform, the Company is currently expanding throughout Europe, Asia, and North America, and has offices and distribution centers in Thessaloniki and Athens, Greece, and in Harlow, UK. More information is available at www.cosmoshealthinc.com, www.skypremiumlife.com, www.cana.gr, www.zipdoctor.co, www.cloudscreen.gr, as well as LinkedIn and X.

Forward-Looking Statements

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. Words such as "believes," "expects," "anticipates," "intends," "projects," "estimates," "plans," and similar expressions, or future or conditional verbs such as "will," "should," "would," "may," and "could," generally identify forward-looking statements, although not all forward-looking statements contain these words. These statements involve risks and uncertainties that may individually or materially affect the matters discussed herein for a variety of reasons outside the Company's control, including, but not limited to: the Company's ability to raise sufficient financing to implement its business plan; the effectiveness of its digital asset strategies, including accumulation and yield-generating activities; the impact of the war in Ukraine and ongoing conflicts in the Middle East and other regions on the Company's business, operations, and the economy in general; the Company's ability to successfully develop and commercialize its proprietary products and technologies; the timing, execution, regulatory clearance, valuation, structuring, and completion of any potential asset-backed or tokenized financing program; the legal, regulatory, and technological risks associated with digital assets and blockchain-based financial structures; the conversion of contract manufacturing pipeline volumes into production and revenue, including the timing, volume and terms of orders placed under multi-year agreements; the realization of anticipated gross margins; the timing, cost and completion of planned capital investments; changes in interest rates; changes in foreign currency exchange rates, commodity or other price inflation and deflation; our ability to issue debt on terms and at rates acceptable to us; the impact and expected outcome of investigations, inquiries, claims, and litigation; the challenges of operating in international markets; the adequacy of insurance coverage; the effect of accounting charges and of adopting certain accounting standards; the impact of legal and regulatory changes, including changes to tax laws and regulations; guidance for fiscal 2026 and beyond and financial outlook. Forward-looking statements are based on currently available information and our current assumptions, expectations and projections about future events. You should not rely on our forward-looking statements. These statements are not guarantees of future performance and are subject to future events, risks and uncertainties - many of which are beyond our control, dependent on the actions of third parties, or currently unknown to us - as well as potentially inaccurate assumptions that could cause actual results to differ materially from our historical experience and our expectations and projections. These risks and uncertainties include, but are not limited to, those described from time to time in our periodic reports filed with the SEC and available at the SEC's website (www.sec.gov). There also may be other factors that we cannot anticipate or that are not described herein, generally because we do not currently perceive them to be material. Such factors could cause results to differ materially from our expectations. Forward-looking statements speak only as of the date they are made, and we do not undertake to update these statements other than as required by law. You are advised, however, to review any further disclosures we make on related subjects in our filings with the Securities and Exchange Commission and in our other public statements.

Investor Relations Contact:

BDG Communications
cosm@bdgcommunications.com

SOURCE: Cosmos Health Inc.

View the original press release on ACCESS Newswire