Healthcare & life sciences industry sees moderate optimism for dealmaking due to intact long-term growth trends
Dealmaking is expected to accelerate slightly due to intact long-term demand drivers. Investor interest remains strong, with a growing lineup of high-calibre sell-side companies set to enter the market in 2024 and beyond. The life sciences and healthcare sectors showed robust M&A dynamics in the first half of 2024. However, deal value (approx. -15%) and deal count (-109) were below those in HY1 2023. Comparing H1Y 2024 to the same period in 2023, the deal count in digital health and pharma logistics has increased, while pharma & biotech, outsourced services, and MedTech have seen slight declines. The number of provider care-related M&A deals decreased in HY1 2024 compared to HY1 2023, due to hospitals and health systems operating in a complex financial, operational, and regulatory landscape.
Investor interest in healthcare and life sciences remains strong, with a growing lineup of high-calibre sell-side companies set to enter the market in 2024 and beyond.
Selected landmark M&A deals in the healthcare sector in HY1 2024
Catalent Inc, a leading provider of contract development, production, and distribution services for pharmaceutical and biomedical firms, formerly under the Elliott Investment Management portfolio, is to be acquired by Denmark's investment entity Novo Holdings. With a deal value of €16.1bn, this acquisition marks the largest transaction within the healthcare sector for the first half of 2024
Shockwave Medical Inc, the local provider of medical equipment used for the treatment of peripheral and coronary vascular disease and aortic stenosis, was acquired by Johnson & Johnson, a US-based pharmaceutical company involved in the research, development, manufacture, and sale of health care products. The deal value amounts to €13.7bn
MorphoSys AG, a biopharmaceutical company specialising in the development of therapeutic solutions primarily for cancer treatment, is to be acquired by Novartis AG, a global healthcare company renowned for its innovative medicines, eye care, generics, vaccines, and over-the-counter products, in a transaction valued at €2.6bn
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