Indian pharma, healthcare sector record 55 deals totaling USD 4.1 billion in Q2 2024
New Delhi: The Indian pharmaceutical and healthcare sector experienced significant activity in the second quarter of this year, according to a report released on Tuesday. The quarter saw a total of 55 deals amounting to $4.1 billion, marking an eightfold increase in deal values and a 10% rise in deal volumes compared to the previous quarter.
The report by Grant Thornton Bharat highlighted a notable increase in the average deal size, which soared from $9.7 million in Q1 2024 to $74 million this quarter. This jump was driven by 11 high-value deals worth $3.4 billion, compared to just one high-value deal amounting to $150 million in Q1 2024.
“As India strives towards 'Viksit Bharat,' we anticipate a substantial rise in the health budget to approximately 3 per cent of GDP in the upcoming Union Budget 2024,” said Bhanu Prakash Kalmath SJ, Partner and Healthcare Services Industry Leader.
According to IANS, compared to Q2 2023, deal values increased by 57 per cent despite a notable $2 billion deal in the previous year executed by Temasek Holdings to acquire a 41 per cent stake in Manipal Health Enterprises.
Volumes witnessed a similar trend with 49 per cent growth, reaching 55 deals this quarter, up from 37 deals in Q2 2023, according to the report.
Domestic consolidations led in deal volumes, while outbound deals dominated in values, contributing 74 per cent to the M&A space.
Private equity (PE) activity in Q2 2024 saw 37 deals valued at $2.7 billion, a 3 per cent increase from Q1 2024.
The largest PE deal was KKR Asian Fund IV's investment in Healthium MedTech, valued at $843 million, accounting for 31 per cent of the quarter's PE values.
Indegene Limited led the IPO activity with a fund-raise of $222 million in Q2
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