The Indian pharmaceutical and healthcare sector has experienced a surge in activity during the second quarter of calendar 2024, with 55 deals totalling $4.1 billion, according to the latest report by Grant Thornton Bharat. This marks a 57 per cent increase in deal values compared to the same period last year and an 8 times rise from the previous quarter, according to Grant Thornton Bharat’s report.
The average deal size also saw a jump, rising from $9.7 million in Q1 calendar year 2024 to $74 million in Q2 2024. This can be attributed to a rise in high-value deals, with 11 deals exceeding $3.4 billion compared to just one such deal in the previous quarter.
Mergers and acquisitions (M&A) in Q2 2024 recorded a dramatic 3.8 times increase in values, reaching $1.4 billion, while the volume of deals rose by 29 per cent. Dr Reddy’s Laboratories’ acquisition of Northstar Switzerland SARL for $633 million was the most significant M&A transaction, highlighting the sector’s expanding global footprint.
The healthtech and medical devices segments have seen an uptick in investor interest, contributing to the overall deal value. Healthium MedTech’s acquisition by KKR Asian Fund IV, valued at $843 million, stands out as the largest deal of the quarter. Deal volumes also witnessed a similar growth trajectory, with a 49 per cent increase from 37 deals in Q2 2023 to 55 deals in Q2 2024.
Healthtech emerged as the leader in deal volumes, capturing a 33 per cent share, while the pharma and biotech segment dominated in terms of deal values, contributing 59 per cent of the total sector value. The medical devices segment saw an exceptional 87 times increase in deal values from the previous quarter, reflecting heightened investor focus on this area.
Deal summary for volumes pharma and healthcare sector
Source: Grant Thornton Bharat Report
First Published: Jul 16 2024 | 6:28 PM IST
