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Cosmos Health Secures Buy-Out Rights, Exclusive Licensing For Two Patented Anticancer Drugs, Addresses Prostate, Ovarian, Colorectal Cancers; Fair Value Set At $24.61M USD; Option To Buy Out For $7.81M USD; Clinical Phase I Trials To Commence
Cosmos Holdings, Inc. COSM | 0.62 | -3.23% |
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 secured buy-out rights and exclusive licensing for two patented anticancer drugs targeting, among others, prostate, ovarian, and colorectal cancers.
Both of these innovative anticancer therapies, developed through cutting-edge oncology research, are protected by international patents and set to commence Clinical Phase I trials. The first therapy is safeguarded by a WIPO patent (WO 2017/001439) and is valid in key markets including the EU, USA, Canada, Japan, China, and Australia. The second therapy is covered by an EU patent (EP3484892) and has been internationally filed under WO 2018/011414 A1, with a focus on major markets such as the USA, Canada, Japan, China, and Australia.
Cosmos Health will oversee further development and commercialization of the two drugs.
This transaction significantly strengthens Cosmos Health's portfolio, enabling the Company to address critical unmet needs in oncology while unlocking substantial long-term value for shareholders.
Independent Valuation
Cosmos Health engaged a leading global audit and advisory firm to assess the fair value of the patents, in accordance with international accounting standards.
Based on the current EUR-USD exchange rate, the fair value in USD is approximately $24.61 million, with a range of $22.80 million to $26.55 million. This valuation is based on the current pre-clinical phase, and any advancements toward commercialization are expected to significantly positively impact future valuations.
Immediately Accretive
The Company has the option to buy out the patents for a fixed price of approximately $7.81 million (€7.5 million) at any time it deems appropriate or to license the distribution rights to third parties at its discretion.
The buyout price represents a significant discount to the patents' fair value and has the potential to add approximately $16.80 million to the Company's net worth, based on the valuation midpoint, contingent upon the exercise of the buyout rights and assuming no other changes to current conditions.