L1 Health focuses on long-term, hands-on investments aimed at creating industry leaders. Our evergreen capital base allows us the flexibility to allocate capital without external pressures and to tailor investment approaches to each opportunity. L1 Health pursues transformative opportunities, focusing on innovation to redefine competition and profit pools. We prioritise long-term trends, leveraging market changes for industry leadership.

In 2024, L1 Health’s strategic focus on strengthening and scaling its portfolio companies delivered robust results across its diverse healthcare holdings. By fostering operational excellence and targeted investment, L1 Health propelled four key platforms - Remedica, Sun Wave Group, K2 HealthVentures and Destination Pet -to new heights. Remedica advanced its transformation as a leading pharmaceutical CDMO, expanding its reach and capabilities; Sun Wave Group reinforced its leadership in Eastern European consumer health with strong organic growth and strategic acquisitions; K2 HealthVentures navigated a challenging biotech funding environment with disciplined portfolio management and continued financial strength; and Destination Pet solidified its position as the largest omnichannel animal health provider in the US, leveraging digital innovation and network expansion. Collectively, these achievements underscore L1 Health’s commitment to building industry-leading platforms that transform healthcare and deliver sustainable value.

Remedica

In 2024, Remedica advanced its transformation journey, building on a strong foundation of operational discipline and strategic focus. The company made significant strides in optimising its commercial network, streamlining API sourcing and enhancing supply chain efficiency, all of which contributed to a more agile and responsive organisation. Accelerated in-licensing efforts further enriched Remedica’s product portfolio, broadening its therapeutic reach and strengthening its market position. These initiatives, combined with a culture of continuous improvement, resulted in
a significant increase in profitability in 2024, underscoring the resilience and adaptability of Remedica’s business model.

Building on its successful expansion in the UAE in 2023, Remedica deepened its presence in the Middle East by opening a scientific office in Riyadh and forging a strategic partnership with AJA Pharmaceuticals to support local development and manufacturing in Saudi Arabia. This collaboration aligns with Saudi Vision 2030 and positions Remedica at the forefront of healthcare innovation in the region. At home in Limassol, expansion of the factory progressed with new machinery and a revised footprint, as well as planning for a new R&D centre, which is set to become a leading hub for pharmaceutical research and innovation in Cyprus, supporting the company’s growing team of scientists and its commitment to developing value-added generic pharmaceuticals.

Remedica’s evolution was further propelled by the strengthening of multiple positions in its leadership team, highlighted by the appointment of industry veteran Andrew Bird as Chief Executive Officer. The company’s progress and clear strategic direction were recognised by new financial partners, with Bank of Cyprus and Eurobank joining as lenders to support ongoing investment in innovation and manufacturing excellence.

Mr. George Papanastasiou, Minister of Energy, Commerce and Industry of Cyprus visiting Remedica’s new logistics centre

Sun Wave Group (SWG)

Our Eastern European consumer health platform, SWG, delivered outstanding results in 2024, achieving 14% YoY net sales growth and 24% YoY EBITDA growth, exceeding €40mn in EBITDA.

This success was driven by strong organic growth across its seven existing markets, supported by a favourable price/volume mix, a robust new product development (NPD) model, ongoing international expansion and significant efficiency gains. Since L1 Health’s investment in 2021, SWG’s EBITDA has tripled, underscoring the company’s ambitious plan to transform into a pan-Eastern European leader.

In Romania, SWG launched over 30 new products in 2024, reinforcing its #1 market position with a 17% market share.

In Serbia, Inpharm, acquired in 2023, has been successfully integrated and expanded its market share to over 10%. In November, the Company also acquired Bioclinica, a leading D2C portfolio of brands, which will further strengthen the Company’s food supplements portfolio.

In Bulgaria, SWG completed the acquisition of Aviron, the market leader in cold and flu remedies and the #2 brand in the food supplements market, accelerating its operations following its greenfield entry in 2023.

SWG also entered the Czech Republic, where it plans to expand through trade partnerships and M&A.

Looking ahead, SWG will continue to drive portfolio innovation through NPD, expansion into new Eastern European markets via M&A and trade partnerships. Additional future growth will be captured by growing the Company’s share in the D2C and digital channel, where SWG has recently established a dedicated Team.

Sun Wave marketing representative, George Ciubar, educates pharmacy staff on new product launches

K2 HealthVentures (K2HV)

2024 continued to be another challenging year for biotech and health ventures, with a difficult funding environment and significant market turmoil. Remarkably, K2HV showed continued strong execution and financial strength. Under the leadership of Parag Shah and Anup Anora, L1 Health’s leading venture lending platform in the US funded more than $230mn across diverse sectors, including biotechnology, medical devices and tech-enabled healthcare services. Commitments since inception surpassed $1.7bn and the portfolio grew to >$700mn in principal outstanding.

K2HV again demonstrated itself to be the partner of choice in 2024 through a combination of flexibility, deep domain expertise and a long-term strategic approach to financing. This was especially evident in portfolio management, where K2HV demonstrated an adept hand in navigating complex workouts for several portfolio companies, returning principle in challenging situations such as asset sales and court-approved liquidations. With this downside protection, asymmetric returns were then achieved by significant realised gains in the equity portfolio notably via exits from Harpoon Therapeutics and TScan Therapeutics.

Looking ahead to 2025, K2HV forecasts >$350mn in new fundings. Strategic priorities include optimising credit structures, further incorporating equity-linked instruments for upside potential and expanding philanthropic contributions through the K2 Foundation. With strong pipeline activity and financial discipline, K2HV is well-positioned to deliver meaningful impact and superior returns in the coming year.

K2HV portfolio review under leadership of Chief Investment Officer Anup Arora

Destination Pet (DP)

2024 was a pivotal year for DP, the largest and fastest-growing omnichannel animal health service provider in the US. The company made significant strides across its 180-location network, achieving organic growth that outpaced industry benchmarks. It also strengthened its digital platform, Yourgi, by enhancing functionality and performance while optimising corporate G&A and cost structures to drive economies of scale and position itself for sustained organic and inorganic expansion.

Following post-COVID normalisation, the US pet care market has faced considerable challenges, including macroeconomic pressures and shifting consumer behavior due to return-to-work trends, affecting discretionary spending. Despite the headwinds, DP successfully expanded its customer base, adding 85,000 new pet parents through targeted and effective marketing campaigns.

Significant advancements in its digital platform enhanced Yourgi with new features designed to elevate the pet parenting experience, particularly Gen Z and millennial pet owners. These improvements drove a +60% YoY increase in in-app revenue for 2024, fueled by greater customer engagement and higher upselling.

In parallel, DP launched an innovative loyalty program, seamlessly integrating both physical locations and digital interactions. With over 35% of customers enrolling, the program has driven increased engagement across the company’s comprehensive suite of services, including grooming, bathing, boarding, daycare, training, veterinary care and at-home services such as mobile X-rays.

Looking ahead, DP is poised for further growth, with plans to expand its footprint through strategic acquisitions and deeper penetration of Yourgi. The company’s ultimate vision is to create a fully integrated, digitally-enabled connected care platform, streamlining veterinary and pet services while enriching the pet parenting journey, driving efficiencies and unlocking new growth opportunities.

Booking grooming sessions on the Yourgi digital platform is becoming rapidly the way appointments are made