A recent report by Bain & Company revealed that the value of global healthcare private equity deals in 2024 reached approximately $115 billion, marking the second-highest value in history. This growth was largely driven by a notable increase in the number of large deals, reflecting strong investor confidence in the healthcare sector.
The report highlighted that 2024 saw five deals surpassing the $5 billion mark, a significant increase compared to just two deals in 2023 and one in 2022. North America continued to lead as the largest market, contributing 65% of the total global deal value. Meanwhile, Europe and Asia-Pacific accounted for 22% and 12%, respectively.
The 2024 recovery in global healthcare private equity was particularly prominent in the Middle East, where sovereign wealth funds are increasingly prioritizing healthcare investments as part of their economic diversification strategies.
Deal volume in Europe surpassed its 2021 peak, driven by a focus on smaller deals in the first half of 2024. Biotech and medtech emerged as the leading sectors, with companies targeting assets in these industries due to their potential for rapid expansion across the region.
The report expressed optimism about the European market, citing the significant growth in deal volume and anticipating continued rise in deal activity. With the potential for more mega deals to emerge, the outlook for the region remains strong. The biotech sector, in particular, continued to lead healthcare deals in terms of value, fueled by several large transactions in 2024.
Despite a record value in deal volumes, the total volume in the biotech and life sciences tools sectors declined by 5% and 10%, respectively, since 2020 in terms of compound annual growth rates. This decline was largely due to a struggle between buyers and sellers over selling price compatibility, alongside a reduction in spending on pharmaceutical services. The decline in venture capital funding for US biotech further contributed to this slowdown, impacting the overall growth and investment in these sectors.
Source: Al Anba
