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Strategic consolidation and targeted investments defined the pharmaceutical and healthcare sector’s deal activity in the second quarter of 2025. While investor confidence remained selective, capital continued to flow into segments aligned with long-term scalability, clinical depth, and operational efficiency. The quarter saw focused interest in pharma manufacturing, specialised hospital platforms, diagnostics, and digital health models anchored in patient engagement and preventive care. Our Pharma and Healthcare Dealtracker offers an overview of the quarter’s transactions and thematic investment priorities across M\&A and PE/VC activity. The report captures sector-wise shifts, investor alignment with scalable and tech-integrated models, and emerging preferences in early-stage innovation.
The deal activity in Q2 2025 moderated both in terms of values and volumes over the previous quarter, with total transactions tapering to USD 1.3 billion across 57 deals. This translated to 20% drop in overall volumes, with values declining by 50% over the previous quarter.
Q2 2025 saw a sharp 86% drop in values at USD 208 million across 23, over Q1 due to the absence of large platform acquisitions and non-disclosure of deal values, with 74% transaction values remaining undisclosed. Domestic deals dominated the overall deal activity with an 87% and 83% contribution in volumes and values, respectively. Consolidation in the hospitals segment drove domestic volumes, while the pharma and biotech segment led the values.
While deal volumes declined, values remained stable, indicating a concentration of investors’ capital in high-confidence platforms. The quarter saw two high-value deals (≥ USD 100 million), together valuing USD 393 million, compared to three high-value deals in the previous quarter, valuing USD 331 million.
IPO activity was tepid in Q2 2025, in contrast to the three IPOs raising USD 503 million in Q1. Meanwhile, QIP activity surged, and Biocon alone raised USD 523 million, contributing to 40% of Q2’s total sector deal value.
The quarter highlights a focused approach to dealmaking, with investments aligning around scale-ready platforms and specialised segments. This edition offers insights to support strategic decisions across the evolving healthcare and life sciences space.
