`Huge drop in pharma deals in Q1′, ET HealthWorld

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New Delhi: The pharma and healthcare sector witnessed a significant 15 per cent decline in volume in the first quarter this year, with 47 deals amounting to $ 409 million, as against the previous quarter, and an 82 per cent decrease in value, compared to $2.3 billion in Q4 2023. The average deal size this quarter declined by 79 per cent at $8.7 million year-on-year, the Pharma and Healthcare Q1 Dealtracker report from Grant Thornton Bharat said.

In Q1, there was a significant decrease in values primarily due to absence of big-ticket transactions, with only one high-value deal (over $100 million) recorded, contrasting with Q4 2023, which saw six such deals.

Medical devices and wellness space attracted investors’ attention, while the health tech segment continued to garner higher volumes in deals.

Investor interest will continue in biosimilar and API segments in the life sciences sector, and we may see consolidation in the hospitals segment, it added.

Mergers and acquisitions (M&A) activity also experienced a significant decline both in volume and value compared to the previous quarter. Volumes decreased by 54 per cent, with only 11 deals in Q1 2024, compared to 24 deals in Q4 2023.

The top two M&A deals were Eric Lifesciences’ acquisition of Biocon Biologics valued at $150 million, while the other was Eris Lifesciences purchase of a controlling stake in Swiss Parenterals at $77 million.

  • Published On Apr 16, 2024 at 02:20 PM IST

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