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The Private Equity (PE) sector experienced a decline in both values and volumes compared to the previous quarter
The pharma and healthcare sector witnessed a decline in deal volumes in Q3 2023, with 26 deals totalling $2.7 billion, down 32 per cent from the same period in 2022 according to the Grant Thornton Bharat Pharma and Healthcare Dealtracker Report. However, deal values increased by 298 per cent year-on-year, due to two high-value deals valued over $650 million each and four deals valued over $100 million each.
Comparing Q3 2023 to Q2 2023, there was a decline in both deal volumes and values by 26 per cent and 14 per cent, respectively. This decrease was largely attributed to a marquee deal in the previous quarter – Temasek Holdings' $2 billion investment in Manipal Health Enterprises. Excluding this deal, Q3 2023 witnessed a 138 per cent increase in deal values.
The M&A (Mergers and Acquisitions) sector showcased resilience and recorded a 161 per cent increase in values, despite a 50 per cent decline in volumes compared to Q2 2023. This decline in volumes was largely due to a single multi-million dollar deal, namely Nirma's acquisition of a 75 per cent stake in Glenmark Life Science for $689 million. This single transaction alone accounted for 54 per cent of the values in the M&A space during the quarter.
| Acquirer | Target | USD million |
|---|---|---|
| Nirma | Glenmark Life Sciences | 698 |
| Manipal Health Enterprises Ltd | AMRI Hospitals | 280 |
| IHH Healthcare Bhd- Gleneagles Development Pvt Ltd | Ravindranath GE Medical Associates Pvt Ltd | 90 |
| Syngene International Ltd | Stelis Biopharma Pvt Ltd's Bangalore manufacturing unit | 86 |
| Asia Healthcare | Asian Institute of Nephrology and Urology | 73 |
Source - Grant Thornton Bharat Pharma and Healthcare Dealtracker Report
Deals in the cross-border space have been on a declining trend, with the quarter witnessing only one deal in the inbound space. Gleneagles Development's acquisition of Ravindranath GE Medical Associates for $90 million marked the sole cross-border deal during this period.
The Private Equity (PE) sector experienced a decline in both values and volumes compared to the previous quarter. However, when compared to Q3 2022, this quarter accounted for a 147 per cent increase in deal values. This growth persisted even after a 44 per cent decline in volumes, due to high-value deals in Q3 2023, driving the average deal size to $80 million.
| Investor | Investee | USD million |
|---|---|---|
| BPEA EQT | Indira IVF Hospital Pvt Ltd | 657 |
| Temasek Holdings, TPG, Prosus, CDPQ, Eight Roads, LGT, ADQ, Amansa, OrbiMed and angel investors | API Holdings Pvt Ltd- Axelia Solutions Pvt Ltd- Pharmeasy | 244 |
| India Resurgence Fund - Synthimed Labs | India Resurgence Fund - Synthimed Labs | 201 |
| Quadria Capital | Maxivision Super Speciality Eye Hospital | 159 |
| TPG Growth and Temasek | Dr. Agarwal's Healthcare Ltd | 80 |
Source - Grant Thornton Bharat Pharma and Healthcare Dealtracker Report
| Q2 2023 | Q3 2023 | |
|---|---|---|
| Domestic | 467 | 1,179 |
| Inbound | 20 | 90 |
| Outbound | - | - |
| Total M&A | 487 | 1,269 |
| PE | 2,650 | 1,442 |
| Grand Total | 3,137 | 2,711 |
Source - Grant Thornton Bharat Pharma and Healthcare Dealtracker Report
The press release was issued on 30 October 2023.
Press Release
Healthcare and pharma sector sees surge in high-value deals: Report
30 Oct 2023
The Private Equity (PE) sector experienced a decline in both values and volumes compared to the previous quarter
The pharma and healthcare sector witnessed a decline in deal volumes in Q3 2023, with 26 deals totalling $2.7 billion, down 32 per cent from the same period in 2022 according to the Grant Thornton Bharat Pharma and Healthcare Dealtracker Report. However, deal values increased by 298 per cent year-on-year, due to two high-value deals valued over $650 million each and four deals valued over $100 million each.
Comparing Q3 2023 to Q2 2023, there was a decline in both deal volumes and values by 26 per cent and 14 per cent, respectively. This decrease was largely attributed to a marquee deal in the previous quarter – Temasek Holdings' $2 billion investment in Manipal Health Enterprises. Excluding this deal, Q3 2023 witnessed a 138 per cent increase in deal values.
The M&A (Mergers and Acquisitions) sector showcased resilience and recorded a 161 per cent increase in values, despite a 50 per cent decline in volumes compared to Q2 2023. This decline in volumes was largely due to a single multi-million dollar deal, namely Nirma's acquisition of a 75 per cent stake in Glenmark Life Science for $689 million. This single 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
| Acquirer | Target | USD million |
|---|---|---|
| Nirma | Glenmark Life Sciences | 698 |
| Manipal Health Enterprises Ltd | AMRI Hospitals | 280 |
| IHH Healthcare Bhd- Gleneagles Development Pvt Ltd | Ravindranath GE Medical Associates Pvt Ltd | 90 |
| Syngene International Ltd | Stelis Biopharma Pvt Ltd's Bangalore manufacturing unit | 86 |
| Asia Healthcare | Asian Institute of Nephrology and Urology | 73 |
Source - Grant Thornton Bharat Pharma and Healthcare Dealtracker Report
Deals in the cross-border space have been on a declining trend, with the quarter witnessing only one deal in the inbound space. Gleneagles Development's acquisition of Ravindranath GE Medical Associates for $90 million marked the sole cross-border deal during this period.
The Private Equity (PE) sector experienced a decline in both values and volumes compared to the previous quarter. However, when compared to Q3 2022, this quarter accounted for a 147 per cent increase in deal values. This growth persisted even after a 44 per cent decline in volumes, due to high-value deals in Q3 2023, driving the average deal size to $80 million.
Top PE deals of the quarter
| Investor | Investee | USD million |
|---|---|---|
| BPEA EQT | Indira IVF Hospital Pvt Ltd | 657 |
| Temasek Holdings, TPG, Prosus, CDPQ, Eight Roads, LGT, ADQ, Amansa, OrbiMed and angel investors | API Holdings Pvt Ltd- Axelia Solutions Pvt Ltd- Pharmeasy | 244 |
| India Resurgence Fund - Synthimed Labs | India Resurgence Fund - Synthimed Labs | 201 |
| Quadria Capital | Maxivision Super Speciality Eye Hospital | 159 |
| TPG Growth and Temasek | Dr. Agarwal's Healthcare Ltd | 80 |
Source - Grant Thornton Bharat Pharma and Healthcare Dealtracker Report
Overall Deal Value Overview
| Q2 2023 | Q3 2023 | |
|---|---|---|
| Domestic | 467 | 1,179 |
| Inbound | 20 | 90 |
| Outbound | - | - |
| Total M&A | 487 | 1,269 |
| PE | 2,650 | 1,442 |
| Grand Total | 3,137 | 2,711 |
Source - Grant Thornton Bharat Pharma and Healthcare Dealtracker Report
The press release was issued on 30 October 2023.