M&A in India jumpstarts top-line growth

India’s healthcare and pharmaceutical sector recorded hectic deal activity with the value of merger and acquisitions (M&A) in the first six months of 2022 scaling a record high to touch $4.32 billion compared to $2.02 billion in the comparative period last year, and crossing the total deal value of $3.35 billion in 2021.

Setting a record M&A deal value in the sector was Biocon (BSE: 532523) subsidiary Biocon Biologics' definitive agreement this February to buy Viatris’ (Nasdaq: VTRS) global biosimilar portfolio for $3.34 billion. The deal received approval from the Competition Commission of India last month.

Another big-ticket deal occurred during the period as Mankind Pharma agreed to pay $249 million for Panacea Biotec's formulation business in India and Nepal.

With the healthcare and pharmaceutical industry in India headed towards aggregation, consolidation and bigger deal sizes, analysts say more foreign companies will be interested in strategic transactions in the future, though valuations will continue to pose a challenge.

Private equity deals