CHICAGO, IL / ACCESS Newswire / January 22, 2025 / 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.
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.
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.
The global oncology market continues to demonstrate robust growth, driven by advancements in targeted treatments, the increasing adoption of immunotherapy, and rising investments in cancer research. According to Grand View Research, the global ovarian cancer drug market size alone is projected to reach $6.3 billion by 2030, growing at a compound annual growth rate (CAGR) of 14.6%. Similarly, the prostate cancer therapeutics market is expected to reach $21.48 billion, with a CAGR of 8.4%, while the colorectal cancer therapeutics market is forecasted to achieve $16.7 billion, growing at a CAGR of 4.7% by the same year. Collectively, these areas represent critical opportunities for innovation and investment in oncology treatments. Additionally, the broader cancer immunotherapy market is projected to surpass $224 billion by 2030, reflecting growing demand for therapies addressing drug resistance, late-stage progression, and cancers with specific genetic mutations.