Pharma deals see significant decline in Q1, says ET HealthWorld

The Pharma and Healthcare sector in India experienced a 15% decline in volume in the first quarter of 2024, according to the Pharma and Healthcare Q1 Dealtracker report by Grant Thornton Bharat. The total value of deals also decreased by 82% compared to the previous quarter, with only one high-value deal recorded. The average deal size this quarter declined by 79% at $8.7 million year-on-year.

Medical devices and wellness sectors attracted investor attention in Q1, while health tech segments continued to see higher volumes in deals. Investor interest is expected to remain strong in biosimilar and API segments in the life sciences sector, with potential consolidation in the hospitals segment.

Mergers and acquisitions (M&A) activity also saw a significant decline in volume and value compared to the previous quarter, with volumes decreasing by 54%. The top two M&A deals included Eric Lifesciences’ acquisition of Biocon Biologics valued at $150 million, and Eris Lifesciences’ purchase of a controlling stake in Swiss Parenterals at $77 million.

Overall, the Pharma and Healthcare industry in India is facing a challenging environment with fewer big-ticket transactions and a decrease in deal sizes. Despite these challenges, the sector continues to attract investor interest, particularly in the areas of medical devices, wellness, and health tech. The future outlook for the industry remains optimistic, with potential for growth and consolidation in key segments.