(BusinessWire) Grupo Biotoscana, a pharmaceutical company based in Bogotá, Colombia, and majority owned by Advent International and Essex Woodlands, today announced that it has signed an agreement to acquire United Medical, a group of pharmaceutical companies based in São Paulo, Brazil, to create a leading specialty pharmaceutical company with commercialization capabilities throughout South America. The acquisition will broaden Biotoscana’s portfolio of innovative licensed products as well as its geographic sales and marketing capabilities by expanding into the $28 billion Brazilian pharmaceutical market.

“We believe this combination will further strengthen our commitment to patients in Latin America and look forward to working with the Biotoscana management team to advance this mission.”

United Medical is focused on the critical care market in Brazil and is partner to several large biotechnology and pharmaceutical companies, including Gilead Sciences Inc. The combined company will focus on critical and specialty care, oncology, hematology, hospital-based products, orphan drugs, pain and gastroenterology, and will have a deep commercial presence in Brazil, Colombia, Argentina, Chile, Peru and Ecuador. Pro forma for the acquisition, the enlarged group will have a sales force of over 225 representatives and revenue of approximately US$200 million.

“The acquisition of United Medical solidifies our position as a pan-Latin American pharmaceutical company focused on commercializing innovative products that serve significant unmet needs,” said Juan Camilo Palacio, Chief Executive Officer of Biotoscana. “United Medical has a strong commercial presence in the Brazilian specialty pharmaceutical market and a complementary product portfolio, which will strengthen our position in the region.”

“We are delighted to be joining forces with Biotoscana in Latin America,” commented Roberto Guttman, Chief Executive Officer of United Medical. “We believe this combination will further strengthen our commitment to patients in Latin America and look forward to working with the Biotoscana management team to advance this mission.”

The Latin American pharmaceutical market is one of the fastest growing markets of its kind in the world. With a combined population of more than 600 million, a rapidly growing middle class and universal health care coverage in most countries, the 2013 pharmaceutical market of nearly US$70 billion is expected to experience double-digit growth over the next decade. Biotoscana seeks to pursue this significant opportunity by broadening its existing commercial portfolio through partnerships with leading pharmaceutical and biotechnology companies for differentiated value-add products in its core therapeutic areas.

The transaction, which is subject to customary closing conditions, including Brazilian antitrust regulatory approval, is expected to close in the first quarter of 2014. Financial terms of the transaction were not disclosed.

Biotoscana was advised on the transaction by Lobo de Rizzo Advogados and Bonn Steichen & Partners. United Medical was advised by Apeiron Partners LLC (Boston, MA) and Schivartche Advogados (São Paulo, Brazil).