Dec 21 2015
MADRID AND BUENOS AIRES – Grupo Biotoscana SL, a leading specialty pharmaceutical company in Latin America, today announced that it has completed the acquisition of Laboratorio LKM S.A., a specialty pharmaceutical manufacturer based in Argentina. The transaction creates the first biopharmaceutical company in Latin America with a truly pan-regional presence and focus on specialty pharmaceuticals. Financial terms of the transaction were not disclosed.
The combined group will have revenue of US$250 million, with operating companies in 10 countries throughout Latin America and a strong combination of world-class licensed products and proprietary specialty branded generic products. The company will operate under the Biotoscana, United Medical and LKM brands.
GBT is controlled by global private equity firm Advent International, with other significant shareholders including Essex Woodlands and a number of private investors. The company operates in some of the fastest-growing geographies in the world, such as Brazil, Colombia, Peru, Chile and Argentina, and focuses on rapidly-growing market segments, such as oncology, infectious diseases, hematology, genetic disorders, HIV and rare diseases.
LKM, which was also controlled by Advent International, has a 30-year track record of innovation and excellence in the specialty segments. The company has operations in Argentina, Uruguay, Peru, Chile, Bolivia, Ecuador and Paraguay. It has a premier position in the oncology market in Latin America, with a state-of-the-art drug development pipeline and high-end branded generics portfolio. LKM’s expertise in oncology and HIV will complement GBT’s current specialty portfolio.
“Today’s announcement is very exciting for us as GBT consolidates its position as the first truly Latin American advanced medicines company,” said Mariano GarcíaValiño, Chief Executive Officer of the group. “The acquisition will enhance GBT’s product portfolio, broaden our geographic reach and add in-house R&D and manufacturing capabilities. Additionally, LKM will strengthen our product renewal pipeline and add to our strong management team.”
“The combination with GBT will help LKM reach critical mass in a number of key countries where the companies’ operations overlap such as Argentina, Chile and Peru,” said Patricio Rabinovich, Chief Executive Officer of LKM. “We will also have the opportunity to introduce GBT and LKM products to each other’s markets and customers.”
The specialty medicines market is the fastest-growing segment of the global pharmaceutical sector and is projected to account for 40%–50% of the market by 2018, according to IMS Health. IMS Health and Deloitte expect the Latin American pharmaceutical market to grow at a compound annual rate of 12% between 2013 and 2017, the highest growth rate of any region in the world due largely to increasing access to healthcare throughout Latin America. GBT will seek to capitalize on this significant opportunity by further expanding its regional footprint, diversifying its product portfolio through in-licensing and proprietary R&D and pursuing additional mergers and acquisitions.
Mariano GarcíaValiño is scheduled to present at the 34th Annual J.P. Morgan Healthcare Conference in San Francisco on January 13, 2016 at 4:00 p.m. PST.
Grupo Biotoscana (GBT) is a rapidly growing biopharmaceutical company in Latin America. The group was established through the union of two leading specialty pharmaceutical companies, each with more than 25 years of experience in their respective markets: Biotoscana, founded in 1984, and United Medical, founded in 1987. GBT markets leading brands in the fields of high-complexity genetic disorders, rare diseases, onco-hematology and specialty treatments, and has long-standing partnerships with top global pharmaceutical players. More information is available at www.grupobiotoscana.com.
About Laboratorio LKM
Founded in 1984, LKM is a leading player in Argentina’s oncology, urology, HIV and specialty treatment markets. The company has established a strong track record of product launches and innovation and remains dedicated to continued research and development aimed at advancing the quality and efficacy of care. More information is available at www.lkmsa.com.ar.
About Advent International
Founded in 1984, Advent International is one of the largest and most experienced global private equity investors. The firm has invested in more than 300 private equity transactions in 42 countries and, as of June 30, 2015, had $33 billion in assets under management. Advent is one of the leading private equity investors in Latin America. Since 1996, the firm has raised more than $6 billion in funds dedicated to the region and invested in over 50 Latin American companies. Advent also has significant experience in the healthcare sector, having invested in 35 companies globally across pharmaceuticals, medical devices, healthcare services and healthcare IT. In addition to Biotoscana and LKM, Advent’s Latin American healthcare investments have included Fleury S.A. (BM&FBOVESPA: FLRY3), the second-largest diagnostic services provider in Brazil, and Fada Pharma, Argentina’s leading manufacturer of generic pharmaceuticals for the institutional market. For more information, visit www.adventinternational.com.
About Essex Woodlands
With $2.5 billion under management, Essex Woodlands is one of the largest and oldest growth equity firms pursuing investments in pharmaceuticals, medical devices, healthcare services and healthcare information technology. Since its founding in 1985, Essex Woodlands has maintained its singular commitment to the healthcare industry and has been involved in the founding, investing and/or management of over 150 healthcare companies, ranging across sectors, stages and geographies. The team is comprised of 20 senior investment professionals with offices in Palo Alto, Houston, New York and London. For more information, please see www.ewhv.com.
This release includes forward-looking statements concerning a transaction between GBT-Grupo Biotoscana and Laboratorios LKM, including expectations with regard to the applicability of predictions to the development and commercialization of future products. GBT-Grupo Biotoscana, United Medical, Advent International and Essex Woodlands disclaim any obligation to update any forward-looking statement, except as required by applicable law.
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