Cosmos Health Inc. (NASDAQ: COSM) announced on March 10 that it had signed a 90‑day Letter of Intent on March 6 with its wholly‑owned subsidiary CosmoFarm S.A. to acquire a Greek pharmacy distribution network that has operated for nearly four decades and generates approximately €10 million (about $11.5 million) in annual gross revenue.
The target network serves a broad base of pharmacy customers with pharmaceutical and para‑pharmaceutical products. Integration with CosmoFarm’s automated, robotic logistics platform is expected to improve operating efficiencies and service levels across Greece, reinforcing Cosmos Health’s vertically integrated model that combines manufacturing, distribution, and branded nutraceuticals.
Cosmos Health’s 2027 revenue guidance of $155.8 million represents a significant acceleration from FY 2024 revenue of $54.43 million, a 2.0% increase from FY 2023. The acquisition is intended to add scale and high‑margin distribution capacity, helping the company meet its guidance and strengthen its competitive position in Europe.
The company’s recent financial performance has shown modest revenue growth and margin compression. FY 2024 revenue rose 2.0% to $54.43 million, but gross margin fell to 7.92% from 8.15% in FY 2023, largely due to a shift toward lower‑margin logistics distribution. The acquisition of a high‑margin network is expected to offset this trend and support margin improvement.
Management emphasized that the bolt‑on acquisition aligns directly with its strategy of strengthening its core pharmaceutical distribution platform. "This proposed bolt‑on acquisition aligns directly with our strategy of strengthening our core pharmaceutical distribution platform," said a Cosmos Health executive. The integration is expected to deliver cost synergies and accelerate revenue growth, providing a clear path to the 2027 guidance.
Investors viewed the deal as a growth catalyst amid the company’s ongoing financial challenges, including a negative adjusted EBITDA of $3.73 million in FY 2024. The acquisition is expected to close within the next few months and represents the first new corporate action reported for Cosmos Health in the past 24 hours.
The content on EveryTicker is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.