Healthcare and pharma sector sees surge in deals

The healthcare and pharma sector recorded 64 deals worth US $2.8 billion in Q3 2024, the highest volume in three years. However, deal values fell 47% from Q2 due to fewer large transactions, pharma and biotech dominated with 79% of the value. Investor interest remains high, driven by innovation and growth in biologics and specialty care.

The Indian healthcare and pharmaceutical sector reported 64 deals worth US$ 2.8 billion in Q3 2024, achieving the highest quarterly volume in three years, according to the report by Grant Thornton Bharat. Mergers, acquisitions, and private equity deals rose significantly, with 59 deals valued at US$ 2.2 billion, the highest since Q4 2021. However, deal value dropped by 47% compared to Q2 2024 due to fewer large transactions. Only two high-value deals worth US$ 1.8 billion occurred, compared to 11 such deals in Q2 totaling US$ 3.4 billion.

Healthtech, pharma, biotech, and wellness segments led with 66% of deal volume, while pharma and biotech accounted for 79% of the total value.

“Overall, the pharma and healthcare sector witnessed increasing investor interest, driven by strong consumer demand focused on healthy living, innovation, and a focus on high-growth areas like biologics and specialty care,” said Bhanu Prakash Kalmath S J, Partner and Healthcare Services Industry Leader at Grant Thornton Bharat.

He added, “We anticipate the deal momentum to continue as companies position for growth both domestically and globally.”

The report highlighted that Q3 2024 achieved 26 mergers and acquisitions valued at US$ 1.9 billion, a record for quarterly volumes in the sector.

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