Healthcare Sector Sees High-value Deals As Deal Volume Drops In Sept Quarter
In the third quarter of 2023, the pharmaceutical and healthcare sector experienced a decrease in deal volumes, comprising 26 deals amounting to USD 2.7 billion. This indicated a notable 32 per cent decline from the same period in 2022, as reported by the Grant Thornton Bharat Pharma and Healthcare Dealtracker Report.
However, despite the decline in deal volume, there was a significant surge of 298 per cent in deal values year-on-year, mainly attributed to two high-value deals, each valued at over USD 650 million, and an additional four deals valued over USD 100 million each.
Comparing Q3 2023 to Q2 2023, both deal volumes and values saw a decline of 26 per cent and 14 per cent, respectively. This decrease was primarily due to the absence of a significant deal in the previous quarter – Temasek Holdings' USD 2 billion investment in Manipal Health Enterprises.
Excluding this specific deal, Q3 2023 witnessed a remarkable 138 per cent increase in deal values. In the M&A sector, despite a 50 per cent decline in volumes compared to Q2 2023, there was a resilient performance, with a 161 per cent increase in values.
The drop in volumes was primarily due to a substantial multi-million dollar deal, particularly Nirma's acquisition of a 75 per cent stake in Glenmark Life Sciences for USD 689 million. This singular transaction alone accounted for 54 per cent of the values in the M&A space during the quarter.
Top M&A deals of the quarter were as follows:
Cross-border deals experienced a decline in this period, with only one deal in the inbound space observed during the quarter. Gleneagles Development's acquisition of Ravindranath GE Medical Associates for USD 90 million marked the sole cross-border deal in this period.
The Private Equity (PE) sector saw a decrease in both values and volumes compared to the preceding quarter. However, in comparison to Q3 2022, this quarter exhibited a significant 147 per cent increase in deal values. Despite a 44 per cent decline in volumes, high-value deals in Q3 2023 contributed to an average deal size of USD 80 million.
The top PE deals of the quarter were as follows:
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