UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

FORM 6-K

 

 

REPORT OF FOREIGN PRIVATE ISSUER

PURSUANT TO RULE 13a-16 OR 15d-16

UNDER THE SECURITIES EXCHANGE ACT OF 1934

 

 

For the month of June 2022

 

Commission File Number: 001-40851

 

 

Procaps Group, S.A.

(Translation of registrant’s name in English)

 

 

9 rue de Bitbourg, L-1273

Luxembourg

Grand Duchy of Luxembourg

R.C.S. Luxembourg: B253360

Tel : +356 7995-6138

(Address of Principal Executive Offices)

 

 

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

 

Form 20-F  ☒                  Form 40-F  ☐

 

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): ☐

 

Note: Regulation S-T Rule 101(b)(1) only permits the submission in paper of a Form 6-K if submitted solely to provide an attached annual report to security holders.

 

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): ☐

 

Note: Regulation S-T Rule 101(b)(7) only permits the submission in paper of a Form 6-K if submitted to furnish a report or other document that the registrant foreign private issuer must furnish and make public under the laws of the jurisdiction in which the registrant is incorporated, domiciled or legally organized (the registrant’s “home country”), or under the rules of the home country exchange on which the registrant’s securities are traded, as long as the report or other document is not a press release, is not required to be and has not been distributed to the registrant’s security holders, and, if discussing a material event, has already been the subject of a Form 6-K submission or other Commission filing on EDGAR.

 

 

 

INFORMATION CONTAINED IN THIS REPORT ON FORM 6-K

 

On June 29, 2022, Procaps Group, S.A. (the “Company”) uploaded to its website a presentation with general information about the Company including, among other, information regarding the Company’s business model, synergies with the recently acquired Grupo Somar, growth strategies and leadership.

 

A copy of such presentation uploaded to the Company’s website is furnished as Exhibit 99.1 to this Report on Form 6-K and incorporated by reference herein.

 

 

Exhibit Index

 

Exhibit Number		Exhibit Title
99.1		Presentation of Procaps Group S.A., dated June 2022 – One of the Fastest Growing and Innovative Pharma Organizations in Latin America

 

 

SIGNATURE

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

	PROCAPS GROUP, S.A.
	By:	/s/ Ruben Minski
	Name:	Ruben Minski
	Title:	Chief Executive Officer
Dated: June 29, 2022

 

 

3

 

Exhibit 99.1

 

1 One of the fastest growing and innovative Pharma organizations in Latin America June, 2022 NASDAQ: PROC

2 DISCLAIMER This presentation was prepared for informational purposes only by Procaps Group, S . A . , a public limited liability company (société anonyme) governed by the laws of the Grand Duchy of Luxembourg and contains financial forecasts with respect to certain financial metrics of Procaps . The independent registered public accounting firm of Procaps has not audited, reviewed, compiled, or performed any procedures with respect to the projections for the purpose of their inclusion in this presentation, and accordingly, neither of them expressed an opinion or provided any other form of assurance with respect thereto for the purpose of this presentation . The financial forecasts and projections in this presentation were prepared by the management of Procaps, and these financial forecasts and projections should not be relied upon as being necessarily indicative of future results . Procaps does not undertake any commitment to update or revise the projections, whether as a result of new information, future events, or otherwise . In this presentation, certain of the above - mentioned projected information has been repeated (in each case, with an indication that the information is an estimate and is subject to the qualifications presented herein), for purposes of providing comparisons with historical data . The assumptions and estimates underlying the prospective financial information are inherently uncertain and are subject to a wide variety of significant business, economic, and competitive risks and uncertainties that could cause actual results to differ materially from those contained in the prospective financial information . Accordingly, there can be no assurance that the prospective forecasts are indicative of the future performance of Procaps or that actual results will not differ materially from those presented in the prospective financial information . Inclusion of the prospective financial information in this presentation should not be regarded as a representation by any person that the results contained in the prospective financial information will be achieved . This presentation includes “forward - looking statements . ” Forward - looking statements may be identified by the use of words such as "forecast," "intend," "seek," "target," “anticipate,” “believe,” “expect,” “estimate,” “plan,” “outlook,” and “project” and other similar expressions that predict or indicate future events or trends or that are not statements of historical matters . Such forward - looking statements include projected financial information . Such forward - looking statements with respect to revenues, earnings, performance, strategies, synergies, prospects, and other aspects of the businesses of Procaps are based on current expectations that are subject to risks and uncertainties . A number of factors could cause actual results or outcomes to differ materially from those indicated by such forward - looking statements . These factors include, but are not limited to : ( 1 ) the inability to recognize the anticipated benefits of the acquisition of AI Soar (Netherlands) BV (“Somar Holding”), Química y Farmacia S . A . de C . V . (“Quifa”), PDM Acondifarma S . A . de C . V . (“PDM”), Gelcaps Exportadora de México S . A . de C . V . (“Gelcaps”), and Grupo Farmacéutico Somar S . A . P . I . de C . V . (“Somar”, and together with Somar Holding, Quifa, PDM and Gelcaps, collectively, “Grupo Somar”) which may be affected by, among other things, competition, and the ability of the combined business to grow and manage growth profitably, or of any merger or acquisition contemplated by the Company ; ( 2 ) the inability to successfully retain or recruits officers, key employees, or directors ; ( 3 ) effects on Procaps’ public securities’ liquidity and trading ; ( 4 ) the lack of a market for Procaps’ securities ; ( 5 ) Procaps’ financial performance following the acquisition ; ( 6 ) costs related to the acquisition ; ( 7 ) changes in applicable laws or regulations ; ( 8 ) the possibility that Procaps may be adversely affected by other economic, business, and/or competitive factors ; and ( 9 ) other risks and uncertainties indicated from time to time in documents filed or to be filed with the Securities and Exchange Commission (“SEC”) by Procaps . Accordingly, forward - looking statements, including any projections or analysis, should not be viewed as factual and should not be relied upon as an accurate prediction of future results . The forward - looking statements contained in this presentation are based on our current expectations and beliefs concerning future developments and their potential effects on Procaps . These forward - looking statements involve a number of risks, uncertainties (some of which are beyond our control), or other assumptions that may cause actual results or performance to be materially different from those expressed or implied by these forward - looking statements . These risks and uncertainties include, but are not limited to, the ability to recognize the anticipated benefits of the acquisition of the Grupo Somar , the impact of COVID - 19 on Procaps’ business, costs related to the acquisition and integration of the Grupo Somar, changes in applicable laws or regulations, the possibility that Procaps may be adversely affected by other economic, business, and/or competitive factors, and other risks and uncertainties, including those included under the header “Risk Factors” in Procaps’ annual report on Form 20 - F filed with the SEC, as well as Procaps’ other filings with the SEC . Should one or more of these risks or uncertainties materialize, or should any of our assumptions prove incorrect, actual results may vary in material respects from those projected in these forward - looking statements . We undertake no obligation to update or revise any forward - looking statements, whether as a result of new information, future events or otherwise, except as may be required under applicable securities laws . Accordingly, you should not put undue reliance on these statements . The financial statement information and data for Procaps contained in this presentation have been prepared in accordance with the International Financial Reporting Standards (“IFRS”) issued by the International Accounting Standards Board . The financial statement information and data for Grupo Somar contained in this presentation have been prepared in accordance with the Normas de Información Financieras (“MFRS”) issued by the Consejo Mexicano de Normas de Información Financiera, A . C . MFRS differs in certain significant respects from IFRS . As a result, the financial information and data of Procaps contained in this presentation prepared under IFRS are not directly comparable to the financial information and data of Grupo Somar contained in this presentation prepared under MFRS . Procaps has not included a description of the principal differences between IFRS and MFRS in this presentation . This presentation includes non - IFRS financial measures, including Adjusted EBITDA and EBITDA . Management believes that these non - IFRS measures of financial results provide useful information to management and investors regarding certain financial and business trends relating to Procaps’ and Grupo Somar’s financial condition and results of operations . Procaps believes that the use of these non - IFRS financial measures provide an additional tool for investors to use in evaluating ongoing operating results and trends . Management does not consider these non - IFRS measures in isolation or as an alternative to financial measures determined in accordance with IFRS . Other companies may calculate non - IFRS measures differently, and therefore the non - IFRS measures of Procaps included in this presentation may not be directly comparable to similarly titled measures of other companies . Certain amounts included herein have been expressed in U . S . dollars for convenience and, when expressed in U . S . dollars in the future, such amounts may be different from those set forth herein . In this presentation, Procaps relies on and refers to information and statistics regarding the sectors in which Procaps competes and other industry data . Procaps obtained this information and statistics from third - party sources, including reports by market research firms . Procaps has not independently verified the accuracy or completeness of the data contained in these third - party sources and other publicly available information . Accordingly, neither Procaps nor its affiliates and advisors make any representations as to the accuracy or completeness of these data . Procaps has supplemented this information where necessary with information from Procaps’ own internal estimates, taking into account publicly available information about other industry participants and Procaps’ management’s best view as to information that is not publicly available . Procaps also owns or has rights to various trademarks, service marks and trade names that it uses in connection with the operation of its businesses . This presentation also contains trademarks, service marks and trade names of third parties, which are the property of their respective owners . The use or display of third parties’ trademarks, service marks, trade names or products in this presentation is not intended to, and does not imply a relationship with Procaps, or an endorsement or sponsorship by or of Procaps . All rights to the trademarks, copyrights, logos and other intellectual property listed herein belong to their respective owners and Procaps’ use thereof does not imply an affiliation with, or endorsement by the owners of such trademarks, copyrights, logos and other intellectual property . Solely for convenience, the trademarks, service marks and trade names referred to in this presentation may appear without the ®, TM or SM symbols, but such references are not intended to indicate, in any way, that Procaps will not assert, to the fullest extent under applicable law, its rights or the right of the applicable licensor to these trademarks, service marks and trade names . This presentation is for informational purposes only and is neither an offer to purchase, nor a solicitation of an offer to sell, subscribe for or buy any securities in any jurisdiction, nor shall there be any sale, issuance or transfer of securities in any jurisdiction in contravention of applicable law. No offer of securities shall be made except by means of a prospectus meeting the requirements of Section 10 of the Securities Act and applicable regulations in Luxembourg. This presentation is not intended to form the basis of any investment decision by the recipient and does not constitute and should not be construed as investment advice and does not constitute investment, tax, or legal advice .

3 Team Members Presenting Today Ruben Minski Founder – Chairman – Chief Executive Officer Founder, President and Director (44 years) Chemical Engineering Owners / President Management Program Melissa Angelini Investor Relations Director Investor Relations Officer Investor Relations Officer IR Client Executive International Relations MBA Finance Vice President & Treasurer Chief Executive Officer Chief Financial Officer MBA Electrical & Industrial Engineering Patricio Vargas Chief Financial Officer Advanced Management Program

4 I. Our Business II. Why Procaps III. Grupo Somar IV. Growth Strategy V. Leadership & ESG AGENDA

Source: Procaps, QYR Research Notes: (1) QYR Research market report as of 2020; (2) The transaction is expected to close in 4Q22, subject to the approval of the Federal Economic Competition Commission (COFECE) in Mexico; the transaction includes Química y Farmacia, Gelcaps and related entities; (3) Refer to Form 20 - F for adjusted 5 EBITDA reconciliation Presence in 13 countries and expansion into Mexico with the acquisition of Grupo Somar (2) Largest pharmaceutical integral CDMO in LatAm and top 5 globally in terms of softgel production capacity (1) Our products are sold & distributed in ~50 markets worldwide 45+ Year - Old Company, 5,300+ collaborators with a start - up mentality 6 additional plants in Mexico subject to COFECE’s approval, including 3 OTC FDA - approved (2 Softgel facilities) In - house R&D capabilities with strong scientific expertise, supporting the expected launch of 150+ products every year 7 manufacturing facilities in Latin America including first RX FDA - approved pharmaceutical plant on the continent Vertically - integrated to provide patented oral drug delivery technology and manufacturing capabilities Presence in 13 countries and expansion into Mexico with the acquisition of Grupo Somar (2) Focus on maintaining strong history of ESG principles Integrated pharma company uniquely positioned to drive pan - regional consolidation US$ mm 2020 2021 2020 2021 331 410 85 100 164 184 27 32 Net Revenues Adj. EBITDA (3) Procaps At A Glance

6 Solid Business Model with Strong Product Diversification Multiple growth avenues through a diverse portfolio of products & services Health solutions for diabetes | BGMs B2B B2C + iCDMO Prescription products (Rx) Diabetes solutions ~30% ~70% OTC products • Integral Contract Development and Manufacturing Organization • Proprietary Softgel Technology: Unigel, Versagel, Chewgel, G - tabs and specialized gummies • Global Pharma as clients for over 18 years Feminine Care Analgesics ~8% ~14% ~21% ~14% Vitamins ~11% Net Revenue CAGR 2019 - 2021 : Antibiotics • Branded Generics in 9 different therapeutic areas • High complexity products for private institutions • Extensive portfolio of OTC consumer healthcare products • A pharma 4.0 solution: a patient - centric, holistic approach • Comprehensive portfolio of innovative products and differentiated services

7 Highly Attractive Financial Profile Notes: (1) Refer to Form 20 - F for adjusted EBITDA reconciliation High Growth in a Resilient Market Adj. EBITDA (1) Profitable Portfolio of Drugs & CDMO Financial Discipline and Operational Leverage Gross Profit 331 410 420 2020 2021 Q122LTM Net Revenues Double - digit growth rates in all business units US$ mm Strong increase in sales volume of products US$ mm US$ mm Consistent growth with high profitability levels 191 236 243 2020 2021 Q122LTM 85 100 101 2020 2021 Q122LTM 58% Gross Margin (Q122 LTM) 24% Adj. EBITDA Margin (Q122 LTM) 21% Net Revenue CAGR (20 - Q122 LTM) Q122 Net Revenues increased 11% vs. Q121 Q122 Adjusted EBITDA increased 15% vs. Q121

8 What have we done since IPO? Delivering on M&A Growth Strategy • Acquisition of Grupo Somar a leading pharma company in Mexico that engages in the development, manufacture, and commercialization of high - quality products • This acquisition is aligned with Procaps Dz s long - term strategy Gummy Expansion in the US • Construction of a new gummy manufacturing facility in Florida to support increased US demand of advanced gummy technologies Debt Refinancing • Reduction in financial expenses due to convenient interest rate from PPN (1) • Change in the debt mix to mostly long term • Improvement of liquidity financial metrics Management Restructuring • Ruben Minski as Chairman and CEO • New senior hires with Camilo Camacho as COO and Patricio Vargas as CFO • Strengthening of the accounting team • IT controls to reduce material weakness • Melissa Angelini as Investor Relations Director ESG • Board of Directors with independent members • M&A & Audit Committees • Improvement of our ESG strategy: Materiality analysis and ESG Report CDMO Expansion in the US • Acquisition of an 86,600sqm production facility and pharmaceutical R&D center in West Palm Beach, Florida to expand global growth of its iCDMO business unit Source: Procaps Notes: (1) Private Placement Notes

9 I. Our Business II. Why Procaps III. Grupo Somar IV. Growth Strategy V. Leadership & ESG AGENDA

10 Our pillars Leadership in an Attractive Market Best in Class Portfolio What makes us unique? Strong In - House R&D Capabilities Driving Attractive Growth Opportunities Leading Regional Pharmaceutical Player with Truly Global Reach to capitalize favorable on regional dynamics Proprietary Portfolio of Branded Differentiated Rx and OTC Products Yields Higher Profitability One of the Leading Pharmaceutical Integral CDMO Specialized in Softgels Leadership in the CDMO Segment Continuous R&D Investments 1 2 3 4 Why Procaps Investment Pillars That Makes Us a Unique Investment Case

11 Renewal Rate continues to grow as R&D investments are increasing Product Renewal Ratio (%) Innovative delivery mechanisms allow Procaps to transform Branded Generics into differentiated products, valued by both patients and physicians Relevant R&D Expenditure ~4 - 5% of Net Revenues invested annually in R&D R&D Investment (%of Net Revenues) 500+ formulations 27O+ skilled personnel in R&D and innovation 600+ products developed in softgels 50+ first launch products annually worldwide 150+ products launched per year 4% 5% 4% 2019 2020 2021 21% 24% 24% 2019 2020 2021 In - House R&D Capabilities Driving Attractive Growth Opportunities Clear avenues for growth given a robust pipeline and a high product renewal rate 1

12 38.0% 31.0% 31.0% 30.0% 26.0% 21.0% 18.0% 15.0% 14.0% - 9.0% Source: IQVIA – Close Up November 2021 Notes: (1) Consists of the 13 markets in which Procaps currently operates; market share based on product sales revenue Strong Growth Leading to Increasing Market Share Procaps is the TOP 2 most preferred company in prescription across the region In Our 13 Markets (1) YTD Growth (%) November 2021 Double Digit Growth YTD 2021: 31%

13 2 Source: IQVIA Institute 2021 Global Medicine Spending and Usage Trends, Outlook to 2025, 2021Fitch Pharmaceuticals & Healthcare Report 2020, BMI 2019 and UN Department of Economics and Social Affairs, IQVIA Note: (1) Derived from 2022E - 2025E expected CAGR of 10.3% & 2021 - 2022 growth of 11.6%, per IQVIA Pharma Sales Aging Population in LatAm Top Market Share Gainers 41% 31% 22% 16% 55% 63% 68% 63% 4% 6% 10% 21% 1975 2000 2025E 2050E 15 - 64 years 0 - 14 years 65+ years Population by Age (1975 – 2050E) Expected CAGR by Region (%) ~10% (1) Global Latin America …LatAm’s pharma sales expected to outperform global growth… 1.8x – 3.5x higher ~3% 11% (1) ~6% CAGR 2021E – 2025E …LatAm’s aging population will increase boosting demand for pharma Procaps is one of the fastest growing companies out of the top 10 in the markets in which we operate… and we are adding Grupo Somar as the 2 nd largest in volume in Mexico Rank (2021) 1 st Company +29% 2 +21% 3 +21% 4 +20% 5 +17% 6 +13% 7 +12% 8 +11% 9 +10% 10 +9% Procaps Positioned to Capitalize on Favorable Regional Dynamics “Right Place, Right Time”

14 Regional Pharmaceutical Player with Global Reach Presence in 13 Countries with Product Reach Across ~50 Markets 2 • First FDA - approved Rx pharma plant in South America • One of the only 5 Hormonal Softgel plants in the world • Centralized R&D Platform based in Colombia with advanced technology and strategic positioning • Cost - efficient manufacturing facilities Manufacturing plants approved by US, Canada, Australia and Europe Regulatory Agencies for both Rx and OTC products Source: Procaps Notes: (1) Subject to the approval of the Federal Economic Competition Commission (COFECE) in Mexico; (2) Includes Biokemical’s manufacturing facility Sales Around the World Commercial Offices Manufacturing Facilities Certified by highly - regulated countries 6 Plants subject to COFECE’s (1) approval 1 2 Colombia Barranquilla 2 Colombia Bogota Brazil Sao Paulo 2 El Salvador (2) San Salvador 1 USA Florida One Underdevelopment

15 3 Product Portfolio Diversification… …With Presence in Several Therapeutics Areas 34% 66% Top 10 Selling Brands Others x Clenox (5%) x Glucoquick (3%) x Ezolium (2%) x Betaduo (4%) x Gestavit (3%) x Artribion (2%) x Muvett (4%) x Citragel (3%) x Isoface (4%) x Nutrigel (2%) Revenue (%) – Q122 Grupo Somar (1) operates in strategic therapeutic areas and also offers a complementary product portfolio in the same segments that Procaps pursues Feminine Care Pain Relief Skin Care Digestive Health Growth & Development Cardiology Respiratory Vision Care Gastro - Intestinal Personal Protective Equip. Antibiotics Immuno - supressants Oncology Analgesics Urology Cough & Cold VMs CNS Blood Clots Source: Procaps Q122 Notes: (1) The transaction is expected to close in 4Q22, subject to the approval of the Federal Economic Competition Commission (COFECE) in Mexico; the transaction includes Química y Farmacia, Gelcaps and related entities Proprietary Portfolio of Branded Rx and OTC Products Well Diversified Proprietary Portfolio

16 4 Source: Procaps Notes: (1) As of December 2021; (2) Average relationship years is based on revenue weighted average • Largest pharmaceutical Softgel • CDMO in LatAm and top 5 globally in terms of softgel production capacity • 5 – 10 - year contracts ; ~70% of which are USD - denominated • Over 639 SKUs across ~300 product lines • Over 126 clients in more than 32 countries with strong and increasing US presence Client Base of Global and Regional Blue - Chip Companies % Softgel Sales (1) Relationship (Avg. Years) (2) Selected Clients Big Pharma 26% ~18 Regional Pharma 52% ~8 Big Suppliers Players 22% ~9 Leading Pharmaceutical Integral CDMO Specialized in Softgels One of the main providers of Softgel advanced technologies for global pharmaceutical and nutraceutical companies

17 I. Our Business II. Why Procaps III. Grupo Somar IV. Growth Strategy V. Leadership & ESG AGENDA

18 Procaps & Somar’s Business Models Have a Strong Strategic Alignment Well - aligned and highly complementary cultures and business models (including Quifa, Gelcaps, and Subsidiaries) Strong R&D capabilities and focus on innovation translating into robust pipeline of new products R&D centers in Latin America and the US R&D center in Mex, with room to increase capacity Experienced and proven Management Team Latam experienced team, innovation culture Team with Mexican knowledge Highly experienced, specialized salesforce 440+ sales force in Latin America Sales force in Mexico for RX, BGx and OTC Proprietary portfolio of branded prescription and OTC products, focused on the private market Direct presence in 13 countries 210+ products in Mexico ~18 Years of relationship with clients FDA approved plant with Softgel production Partner of choice to leading global pharma companies through CDMO business 7 plants +Proprietary Softgel Technology 6 plants in Mexico, with 3 FDA approved and 2 Softgel State - of - the art facilities capable of manufacturing highly complex products Core Capabilities

19 Procaps & Grupo Somar Merger Provides Attractive Synergies The acquisition of Grupo Somar is expected to deliver relevant synergies for Procaps Anticipated OpEx Efficiencies • Corporate back - office optimization is expected to result in expense reduction • Standardization of technological platforms and administrative processes optimization of manufacturing facilities (redundancies) Anticipated COGS Efficiencies • Strategic alliances with suppliers to become key regional customer • Exports packaging concentration in a free trade zone to optimize costs • Specialization and concentration in Mexico of solids, semi - solids and liquids for the region R&D Efficiencies • Implementation of best practices and know - how in the development of products is expected to increase the current capacity of launches Cross - Selling Opportunities • More than 30 products of Grupo Somar’s existing and developing portfolio are expected to be launched in the regions Procaps operates in between 2023 and 2025 • Products of Procaps’ existing and developing portfolio are expected to be launched in Mexico via Grupo Somar

20 I. Our Business II. Why Procaps III. Grupo Somar IV. Growth Strategy V. Leadership & ESG AGENDA

21 Recurring investments in R&D, innovation and optimization Our Strategy Growth Avenues Robust and relevant portfolio New Therapeutic Areas and Products with focus on high complexity drugs, chronic diseases, specialty products, new Geographies Geo Expansion Leverage on Colombia’s portfolio in LatAm and Mexico cross sell opportunities Operational Excellence Industry and capacity expansion both for CDMO and proprietary drugs Innovative delivery mechanisms to transform BGx into differentiated products, with high value added, Health Solutions Innovative Technology & Health Solutions 1 2 3 4 Accretive M&As Sustainable growth towards global expansion 5 Agile Business Model To Identify Growth And Time - to - Market Our 5 main growth pillars

22 1 Gelatin, coated tablets, easy to swallow and impossible to counterfeit Consumers’ preferred dosage form Chewable soft capsules technology is a new solution for children and consumers who have difficulty swallowing Delivering easy nutrition with a variety of formulations in nutritional gummies The Smart Softgel for multi - dose therapies, multi - purpose products Versatile plant based softgel (Big seller in USA, Europe and Middle East) Innovative Technology & Health Solutions Continuous investments in proprietary technology & health solutions to accelerate Procaps growth path Proprietary Technology Holistic Health Solutions Digital Health Platform that helps patients/doctors/insurers to manage chr diseases Promoting personalized and preventive care , leveraged on telehealth and homec which enables adherence to medical treatment Already operational for Diabetrics and upcoming migration to other chronic diseases Disruption of the business model Launch of e - shop platform , services at demand, premium services subscription Direct medical prescriptions to e - pharm for home delivery Direct - to - consumer business model with seamless digital experience in the patien journey 22

23 2 Source: Size of pharmaceutical markets IQVIA + Knobloch Mexico, MAT Dic 2021; Central America includes Guatemala, Costa Rica, Honduras, Panama, El Salvador, Nicaragua. New registrations in the last 36 months in each country. (USD bn) Peru New registrations : 48 Ecuador New registrations: 55 Bolivia New registrations: 39 El Salvador New registrations: 67 Costa Rica New registrations: 33 Dominican Republic New registrations: 41 Guatemala New registrations: 82 Honduras New registrations: 84 Nicaragua New registrations: 23 Panama New registrations: 40 Size of Pharmaceutical Market in LatAm Markets by Major Country Evolution of New Registrations in LatAm Countries Mexico expected cross selling opportunities: 210+ products Geo Expansion of Existing Portfolio Clear strategy to propel strong organic growth in a diversified portfolio New Registrations by Country 215 752 174 146 166 51 2018 2019 2020 2021 Q122 Total +3.5x 2.1 21.4 12.9 2.9 1.6 1.0 0.9 Colombia Mexico Central America Ecuador Peru Dominican Republic Total Market

24 Agile Business Model To Identify Growth And Time - to - Market Robust and relevant portfolio Source: The Cancer Atlas – The Burden, Regional Diversity – Latin America and the Caribbean Ranking Product Line Global Sales 2024E (USD bn) Pipeline + Somar 1 Oncology 223 x 2 Anti - diabetes 51 x 3 Anti - rheumatic 57 x 4 Vaccines 45 x 5 Anti - viral 40 x 6 Immunosuppressants 38 x 7 Bronchodilators 32 x 8 Dermatological 30 x 9 Sensory Organs 27 x 10 Anti - hypertensive 24 x Top Global Sales by Product Line Most Common Types of Cancer in LatAm in Procaps’ pipeline Robust Pipeline in Development 15% Breast x 9% Colon and Rectum x 9% Trachea, Bronchus and Lung x 5% Stomach x 4% Skin x Cancer incidence rate by type (%) (In Pipeline) 14% Prostate x 9% Colon and Rectum x 9% Trachea, Bronchus and Lung x 5% Stomach x 4% Skin x # Drugs Specialty 19 Farma 44 25 OTC 28 Diabetes 3 Grupo Somar is expected to bring a robust additional pipeline

25 4 Highlights • Procaps operates state - of - the - art manufacturing facilities and development centers in LatAm • First plant to receive FDA approval in Latin America (Procaps Barranquilla) • Multiple projects related to plant improvements, capacity expansion and new equipment and technology in recent years Operational Excellence Source: Procaps, Grupo Somar Note: (1) The transaction is expected to close in 4Q22, subject to the approval of the Federal Economic Competition Commission (COFECE) in Mexico; the transaction includes Química y Farmacia, Gelcaps and related entities State - of - the - art manufacturing capabilities providing innovative delivery technologies Industrial Complex Expansion Roadmap 2022 2023 Procaps Barranquilla Location: Barranquilla Products: Soft gelatin capsules, pharmaceuticals SBUs: Funtrition & Pharmayect Location: Bogota Products: Gummies, sterile liquids, glass vials SBUs: Rymco Location: Barranquilla Products: Single - use medical products SBUs: Softcaps Location: Sao Paulo Products: Soft gelatin capsules SBUs: West Palm Beach Location: Florida Products: Soft gelatin capsules SBUs: Laboratorios Lopez Location: San Salvador Products: Pharmaceuticals, liquids SBUs: Piedras Negras Products: Sutures and needles plant ▪ ~7K sqm ▪ Adjacent to US border and FDA approved Valle Products: Effervescent & topical powders ▪ One of the 3 effervescent manufacturing plants in the country (~2K sqm) Chalco Products: Oral solids ▪ ~14K sqm ▪ Significant room for expansion Funtrition | Florida Products: Soft gelatin capsules ▪ Project under construction ▪ Expansion plan expected to double current production capacity Ramos Arizpe 1 – 2 Products: Hormonal, semisolids, liquids, softgel, among others ▪ 1: ~15K sqm | 2: ~10K sqm ▪ 1: Leading softgel player ▪ 2: FDA approved Naucalpan Products: Soft gelatin capsules ▪ ~7K sqm ▪ FDA approved • Grupo Somar (1) has strong manufacturing capabilities that we believe can support sustainable growth 25 Colombia Brazil El Salvador United States Mexico

26 5 Inorganic Growth: M&A Established Platform with M&A turnaround capabilities ready to continue inorganic growth Integration Plan | Grupo Somar What  s Next for M&A Procaps is constantly looking for M&A opportunities in target countries if they fit certain conditions: Geographical Focus + • Added value drugs on their portfolio • Operate in strategic therapeutic areas • Complementary portfolio in the same segment or segment we want to pursue • Strategic fit with Procaps Potential geographical focus: • Underpenetrated markets, potential targets for consolidation • Pharma targets in Latin America • CDMO targets in Brazil and the US Initial Integration Plan with actions to target main business areas of Somar for the next 12 – 18 months. Our internally developed post M&A strategy is used in order to produce tangible results , such as: • Capture short term synergies • Accelerated growth and culture integration • Consolidate corporate management team and talent retention • Eliminate duplications, which leads to significant savings • Strong internal control and centralized finance area • Register Mexico  s products in LatAm • Register Colombia  s products in Mexico • Increase or gain global pharma contracts for CDMO services • Accelerate R&D pipeline and development

27 Regional B2C leader in South and Central America Global Player in the B2B segment Proprietary portfolio of branded RX and OTC products Mid - teens Annual organic growth rate Growth Driven By: Higher growth of CDMO services New product launches and continued rollout of our existing portfolio in new countries, across every SBU Demand achieved through our Rx and OTC brands $1,000 $410 $184 2021 - Procaps 2021 - Somar 2025E $250 $100 $32 2021 - Procaps 2021 - Somar 2025E CAGR: ~ 26% CAGR: ~ 25% Net Revenue Adjusted EBITDA (USD mm) (USD mm) Where Do We Want to Be in ~5 Years Well positioned for future growth with earlier anticipated results

28 I. Our Business II. Why Procaps III. Grupo Somar IV. Growth Strategy V. Leadership & ESG AGENDA

Mauricio Castañeda Luis Palacios Henry Olmos Luis Velasquez Daniel Aicar Eduardo Herrera Jorge Sierra Human Resources Marketing & R&D Procaps Colombia Nextgel CAN CASAND Diabetrics 29 Ruben Minski Camilo Camacho Patricio Vargas Melissa Angelini Carlos Piocuda Grethel Moreno Marcela Carvajalino CEO & Founder COO CFO IRO VP Finance Audit & Internal Corporate Control Corporate Affairs Board of Directors 7 members, with 4 independent Executive Board Audit Committee Compensation Committee M&A Committee Nominating Committee Corporate Responsibility Ruben Minski - Chairman José Minski Alejandro Weinstein Luis Fernando Castro David Yanovich Daniel Fink Kyle Bransfield Internal Audit Compliance Founder - Led and Strong Governance Seasoned Management Team and Complete Corporate Governance Structure

30 Governance • Corporate governance that leads efforts towards strategic objectives, monitoring integrity, transparency and internal processes carried out by the Corporation • Implementation of (Audit; Strategy and M&A; HR, and Governance) committees Compensation Environmental • Green culture committed to environmental best practice to meet or exceed environmental regulations • Production policies focused on rational use of raw material and less packaging materials • Process optimization in all plants while better managing waste and protecting energy and water resources Social • Management and execution of sustainable projects and programs that contribute to social development in the Caribbean region • 126,000+ Children and teenagers • 3,740+ Expectant mothers • 5,500+ Elderly population • 179,000+ Health Days • 2,300+ volunteers • Expanding the availability and access of our portfolio of effective, safe and quality products and innovative technologies in the region ESG Improving Standards of Environmental, Social and Governance Initiatives Well positioned to capitalize on future growth opportunities

31 Thank you ir@procapsgroup.com Investor.procapsgroup.com NASDAQ: PROC