CHICAGO, IL / ACCESSWIRE / October 11, 2023 / Cosmos Health Inc. (“Cosmos Health” or the “Company”) (NASDAQ:COSM), a diversified, vertically integrated global healthcare group engaged in innovative R&D, owner of proprietary pharmaceutical and nutraceutical brands, manufacturer and distributor of healthcare products, and operator of a telehealth platform, announced today that it has entered into a purchase agreement to acquire Cloudscreen®, a revolutionary Artificial Intelligence (AI) powered platform.
Cloudscreen® is a multimodal platform for drug repositioning and repurposing. It integrates both 1D and 3D data types into its AI algorithm, which thoroughly analyzes the druggable proteome and variome, offering accurate predictions for repurposing of existing drugs toward new indications. The platform is accompanied by in vitro validation for both toxicity and effectiveness.
The planned acquisition of Cloudscreen® encompasses the software, its registered trademark, and associated know-how. The founders of Cloudscreen® and its senior scientific team would continue to lead and manage the research, initiation, and execution of new drug repurposing projects. As a starting point, Cloudscreen’s team is anticipated to undertake five repurposing projects, with the potential for each project to lead to patent filing upon successful completion of the in vitro validation phase.
According to MarketWatch, the global drug repurposing market size is anticipated to reach USD 30.1 billion by 2028, up from USD 24.5 billion in 2021, reflecting a CAGR of 2.9% over the 2022-2028 period. Drug repurposing, often referred to as re-profiling, is the process of identifying new therapeutic applications for approved and marketed drugs that have already been through safety and efficacy testing, and has emerged as a key strategy by the vast majority of pharmaceutical and biopharmaceutical companies to fuel significant business expansion. Notably, between 2007 and 2009, 30-40% of all biologics approved in the U.S. were either repurposed or repositioned drugs. Finding new therapeutic applications for previously researched drugs can offer patients quicker access to novel treatments. Such a strategy not only benefits developers by reducing time and costs but also retains the original IP protection. Especially for high-cost conditions like cancer, exploring anti-cancer potentials in a vast array of off-patent drugs, which have already established their safety profiles, is a powerful tactic preferred by most leading pharmaceutical enterprises.
The total investment is expected to exceed $5 million through 2029. This amount includes an initial purchase price of approximately $1 million: €300,000 in cash and a stock consideration valued at $700,000, based on an issuance price of $2.50 per share. Additionally, there will be an ongoing annual investment of €400,000 for the initiation of repurposing projects, along with the recruitment of key scientific and technical personnel.
Greg Siokas, Chief Executive Officer of Cosmos Health, stated: “Today is a great day for Cosmos, a transformative moment propelling us to unprecedented levels and new groundbreaking territories. Cloudscreen is a revolutionary, cutting-edge platform that has already demonstrated impressive results. Drug repurposing is the future, and so is artificial intelligence. By bringing them together, as well as recruiting a team of top-notch scientists and engineers, we’re positioning ourselves to effectively tap into the lucrative, multi-billion dollar global drug repurposing market. In fact, we foresee our successful repurposing projects producing a tremendous return on our investment, generating value in the billions of dollars. This is an inflection point for our Company and the industry at large, creating a new dimension and new source of value. Moreover, as a testament to our prudent capital allocation strategy, Cloudscreen’s founders, who will remain onboard, have agreed to accept Cosmos stock as the primary component of the acquisition price, at a price well above the current share price, reflecting their confidence in our vision and direction. We intend to build upon Cloudscreen’s momentum and turn it into a leading powerhouse. This move marks a game-changing direction for Cosmos, a new important chapter in our story. In short, this is a big moment!”
Minos Matsoukas, Co-Founder of Cloudscreen, stated: “We are delighted to become a part of Cosmos. Cloudscreen is truly unique, capitalizing on the hottest trends in AI and drug repurposing. Our groundbreaking technology has been thoroughly validated. We have already embarked on our first repurposing project, which is patent-pending, and have several more in the pipeline. We anticipate that each successful project will generate tremendous value. We look forward to accelerating our efforts and share a common vision with Greg Siokas and the Cosmos team. Cloudscreen is well-positioned to become a market leading technology in the field of drug repurposing.”
About Cosmos Health Inc.
Cosmos Health Inc. (Nasdaq:COSM), incorporated in 2009 and headquartered in Chicago, Illinois, 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® and C-Sept®. Through its subsidiary Cana Laboratories S.A., licensed under European Good Manufacturing Practices (GMP) and certified by the European Medicines Agency, 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, 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, and www.zipdoctor.co.
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.