Indian healthcare, pharma sector sees highest quarterly deal volumes in 3 years

New Delhi: The healthcare and pharma sector saw an overall 64 deals, valued at $2.8 billion in Q3 of 2024, marking the sector's highest quarterly volumes in three years, according to a report on Tuesday.

The report by Grant Thornton Bharat showed that mergers and acquisitions, and private equity deal volumes increased significantly, with 59 deals worth $2.2 billion, the highest since Q4 2021.

However, Q3 2024 saw a 47 per cent decline in deal values compared to Q2 2024.

The decline was mainly due to fewer high-value deals, with only two deals worth $1.8 billion.

In contrast, Q2 2024 had 11 high-value deals (over $100 million) totalling $3.4 billion.

Healthtech, Pharma, and biotech and wellness segments led the deal volumes collectively with a 66 per cent share, while Pharma and biotech led the deal values with a 79 per cent share.

“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,” Bhanu Prakash Kalmath S J, Partner and Healthcare Services Industry Leader, Grant Thornton Bharat.

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

The report said that Q3 2024 saw 26 merger and acquisition deals valued at $1.9 billion, achieving record-high quarterly deal volumes.

Deal volumes also increased 44 per cent from Q2 2024, and deal values rose by 39 per cent to $1.9 billion.

Further, Q3 2024 saw 33 private equity/venture capital deals valued at $246 million. Deal values declined 91 per cent from Q2 2024 due to the absence of big-ticket transactions.

The Q3 2024 also saw two IPOs valued at $459 million, among the largest in the sector for 2024, while three QIPs raised $214 million, marking a significant increase in activity.