India’s pharma and healthcare sector continue to see rising investor interest with an increasing shift in focus to scalable and global models despite a quarterly decline in deal value and volume due to macroeconomic headwinds, according to a report by Grant Thornton Bharat.
Data for Jan-Mar (Q1) for calendar year 2025 shows a 34% year-on-year increase in deal volumes while values surged by 326%.
The quarter also saw a rise in high-value deals (over $100 million), with six such transactions—double that of the previous quarter—indicating robust investor confidence and a continued appetite for scale investments, according to the Grant Thornton Bharat Pharma & Healthcare Dealtracker.
However, compared with the previous quarter, Q1 recorded 71 deals amounting to $2.6 billion, reflecting a slight 5% dip in volumes and a 69% drop in values compared to Q4 2024 calendar, according to the report.
But despite the moderation in deal values during the first three months, investor interest in the healthcare and pharmaceutical sector remains resilient.
M&A activity contributed 57% of the total deal value, while private equity drove 59% of the overall volume, according to the report.
Excluding IPOs and QIPs, the quarter saw 67 deals valued at USD 2.1 billion—a marginal 3% decline in volumes and a 70% drop in values, primarily due to the absence of the $5 billion Aster DM Healthcare–Quality Care India merger that skewed the previous quarter’s numbers. Adjusting for this outlier, Q1 2025 saw a 15% increase in deal values.
"Investor interest in India’s healthcare and pharmaceutical landscape remains resilient, with strong momentum in health tech, CDMO/API manufacturing, single-specialty care platforms and consolidation in multi-specialty hospital,” said Bhanu Prakash Kalmath S J, Partner & Healthcare Services Leader, Growth at Grant Thornton Bharat.
The sector’s shift toward regulated market access, digital innovation, and scalable consumer health models continues to drive deal flow.
“While the fundamentals remain robust, macroeconomic pressures and potential US tariff measures may moderate deal values and volumes in the near term. Nevertheless, the sector presents compelling opportunities for both strategic and financial investors looking to tap into India’s evolving healthcare ecosystem,” said Kalmath.
M&A Scene
M&A saw 25 deals totalling $1.5 billion, with volumes remaining stable quarter-on-quarter, reflecting sustained appetite for mid-market deals and strategic tuck-in acquisitions. Although overall M&A values dropped 76% compared to Q4 2024, this was primarily due to the absence of the $5 billion Aster DM Healthcare–Quality Care India mega-merger.
Domestic transactions dominated deal volumes with a 68% share, while outbound deals led in value—driven by three high-value transactions (over USD 100 million) that contributed 79% of the total M&A value. Outbound activity hit its highest volume and value in six and two years, respectively, as Indian pharma players pursued access to regulated markets, specialty product portfolios, and CDMO/API capabilities, according to the report.
The largest M&A deal of the quarter was Intas Pharmaceuticals’ $558 million acquisition of Udenyca from Coherus Biosciences, accounting for nearly 27% of total sector values and signalling India’s growing ambitions in the US biosimilars space. Sun Pharma’s $355 million acquisition of Checkpoint Therapeutics further emphasized ongoing consolidation in oncology.
Overall, the top five M&A deals made up 86% of total M&A value, reflecting a continued tilt toward big-ticket, strategic acquisitions, according to the report.
PE Activity
There were 42 PE/VC deals totalling $562 million, reflecting marginal quarter-on-quarter changes of 2% in volume and 7% in value took place in Q1, according to the report. While overall investment levels remained subdued, this was the second-highest quarterly deal volume in the last 12 quarters, indicating sustained investor interest despite a continued absence of high-value transactions. The average deal size stood at $13.4 million, continuing a declining trend over the past four quarters. PE activity remained concentrated in early-stage funding, with health tech leading the charge, followed by the wellness segment—particularly in sexual wellness and nutritional products. The investment landscape demonstrated a clear preference for scalable, asset-light models such as digital health platforms, diagnostics labs, and chronic care solutions, all aligned with the growing emphasis on preventive care and decentralise diagnostics, according to the report.
The top five PE deals accounted for 74% of total PE value, with the largest being Kotak Alternate Asset Managers’ $121 million investment in Tirupati Medicare.
Data for Jan-Mar (Q1) for calendar year 2025 shows a 34% year-on-year increase in deal volumes while values surged by 326%.
The quarter also saw a rise in high-value deals (over $100 million), with six such transactions—double that of the previous quarter—indicating robust investor confidence and a continued appetite for scale investments, according to the Grant Thornton Bharat Pharma & Healthcare Dealtracker.
However, compared with the previous quarter, Q1 recorded 71 deals amounting to $2.6 billion, reflecting a slight 5% dip in volumes and a 69% drop in values compared to Q4 2024 calendar, according to the report.
But despite the moderation in deal values during the first three months, investor interest in the healthcare and pharmaceutical sector remains resilient.
M&A activity contributed 57% of the total deal value, while private equity drove 59% of the overall volume, according to the report.
Excluding IPOs and QIPs, the quarter saw 67 deals valued at USD 2.1 billion—a marginal 3% decline in volumes and a 70% drop in values, primarily due to the absence of the $5 billion Aster DM Healthcare–Quality Care India merger that skewed the previous quarter’s numbers. Adjusting for this outlier, Q1 2025 saw a 15% increase in deal values.
"Investor interest in India’s healthcare and pharmaceutical landscape remains resilient, with strong momentum in health tech, CDMO/API manufacturing, single-specialty care platforms and consolidation in multi-specialty hospital,” said Bhanu Prakash Kalmath S J, Partner & Healthcare Services Leader, Growth at Grant Thornton Bharat.
The sector’s shift toward regulated market access, digital innovation, and scalable consumer health models continues to drive deal flow.
“While the fundamentals remain robust, macroeconomic pressures and potential US tariff measures may moderate deal values and volumes in the near term. Nevertheless, the sector presents compelling opportunities for both strategic and financial investors looking to tap into India’s evolving healthcare ecosystem,” said Kalmath.
M&A Scene
M&A saw 25 deals totalling $1.5 billion, with volumes remaining stable quarter-on-quarter, reflecting sustained appetite for mid-market deals and strategic tuck-in acquisitions. Although overall M&A values dropped 76% compared to Q4 2024, this was primarily due to the absence of the $5 billion Aster DM Healthcare–Quality Care India mega-merger.
Domestic transactions dominated deal volumes with a 68% share, while outbound deals led in value—driven by three high-value transactions (over USD 100 million) that contributed 79% of the total M&A value. Outbound activity hit its highest volume and value in six and two years, respectively, as Indian pharma players pursued access to regulated markets, specialty product portfolios, and CDMO/API capabilities, according to the report.
The largest M&A deal of the quarter was Intas Pharmaceuticals’ $558 million acquisition of Udenyca from Coherus Biosciences, accounting for nearly 27% of total sector values and signalling India’s growing ambitions in the US biosimilars space. Sun Pharma’s $355 million acquisition of Checkpoint Therapeutics further emphasized ongoing consolidation in oncology.
Overall, the top five M&A deals made up 86% of total M&A value, reflecting a continued tilt toward big-ticket, strategic acquisitions, according to the report.
PE Activity
There were 42 PE/VC deals totalling $562 million, reflecting marginal quarter-on-quarter changes of 2% in volume and 7% in value took place in Q1, according to the report. While overall investment levels remained subdued, this was the second-highest quarterly deal volume in the last 12 quarters, indicating sustained investor interest despite a continued absence of high-value transactions. The average deal size stood at $13.4 million, continuing a declining trend over the past four quarters. PE activity remained concentrated in early-stage funding, with health tech leading the charge, followed by the wellness segment—particularly in sexual wellness and nutritional products. The investment landscape demonstrated a clear preference for scalable, asset-light models such as digital health platforms, diagnostics labs, and chronic care solutions, all aligned with the growing emphasis on preventive care and decentralise diagnostics, according to the report.
The top five PE deals accounted for 74% of total PE value, with the largest being Kotak Alternate Asset Managers’ $121 million investment in Tirupati Medicare.
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