Cosmos Health Inc. has entered into a long‑term manufacturing agreement with Libytec Pharmaceutical S.A., the company’s exclusive distributor in Greece, to produce the fixed‑dose combination of thiocolchicoside and paracetamol known as PathMuscle. The contract obligates Cosmos’s wholly owned subsidiary, Cana Laboratories, to manufacture and supply a minimum of 591,500 units in the first year, with cumulative volumes projected to exceed 1.2 million units over five years.
The agreement covers the entire production chain—from formulation and manufacturing to quality control and product release—under applicable regulatory requirements. By securing a volume‑backed contract that spans five years, Cosmos is positioning Cana Laboratories to achieve higher capacity utilization and a more predictable revenue stream, a key objective in its broader strategy to grow the contract‑manufacturing segment.
In the context of Cosmos’s recent financial performance, the deal builds on a record Q3 2025 quarter that saw revenue and gross profit rise to new highs, with the contract‑manufacturing division contributing a significant share of the growth. The new PathMuscle contract is expected to add a high‑margin revenue stream, reinforcing the company’s momentum toward a 15.21% gross margin in Q3 2025, up from 9.72% a year earlier. Management highlighted that the deal aligns with CEO Greg Siokas’s focus on “expanding pharmaceutical manufacturing through long‑term, volume‑backed collaborations.”
Market reaction to the announcement was positive, with Cosmos Health’s stock rising 3.7% on the day of the announcement. Analysts noted that the market rewarded the company for the strategic fit of the contract, the scale of the volume commitment, and the potential for margin expansion in the contract‑manufacturing business. The deal also signals confidence in the European generics market, where demand for combination analgesics remains robust.
The PathMuscle agreement represents a tangible step toward Cosmos Health’s goal of diversifying its revenue base beyond wholesale and nutraceutical segments. By leveraging its GMP‑licensed facilities, the company is expected to capture a larger share of the high‑margin contract‑manufacturing market, potentially improving long‑term profitability and providing a buffer against cyclical demand swings in other business lines.
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