MADRID AND BUENOS AIRES – December 21, 2015 – 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 Garcia-Valiño, 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 García-Valiño 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.