If there is one sector leading healthcare dealmaking in India this year, it is pharma.
Seven of the top 10 M&A and PE transactions have been in pharma and biotech, with Sun Pharmaceutical Industries’ acquisition of US drugmaker Organon & Co. accounting for the lion’s share of the sector’s deal value.
According to data available with Grant Thornton Bharat, the $11,750 million transaction alone contributed nearly 89% of the sector’s overall M&A deal value. The other big deals were much smaller in comparison. API maker Gujarat Themis Biosyn Ltd (GBTL) acquired French drugmaker Sanofi’s tuberculosis (TB) and anti-infective portfolio for $183 million, while Zydus Worldwide completed the $166.4 million acquisition of US-based pharma company Assertio Holdings Inc.
Notably, all three were outbound acquisitions, reflecting Indian drugmakers’ continued appetite for overseas assets. In domestic M&A, Apollo Health and Lifestyle Ltd’s Apollo Cradle and Apollo Fertility businesses combined with Kids Clinic India’s Cloudnine maternity and fertility businesses to create one of India’s largest integrated maternity and fertility care platforms.
Overall, the biggest deals were focused on acquiring established portfolios, brands and therapeutic franchises rather than adding manufacturing capacity, signalling a preference for expanding market presence and capabilities through acquisitions.
M&A activity hit an all-time high in value terms, with deals worth $13,209 million, according to Grant Thornton data. The sharp rise from $915 million in Q1 2026 and $1,588 million in the October-December quarter of 2025 shows that companies are increasingly looking to grow through strategic acquisitions.
“While the quarter’s headline value was driven by a single large transaction, the broader market continued to reflect selective capital deployment, steady consolidation and sustained interest in innovation-led businesses,” said Bhanu Prakash Kalmath S J, Partner and Healthcare Industry Leader at Grant Thornton Bharat.
In contrast, PE activity remained muted so far this year. Fund managers invested $444 million in the April-June period, slightly lower than the $456 million in Q1 2026 and $476 million in the October-December quarter of 2025.
However, pharma continued to attract investor interest, remaining the preferred segment even in a slower PE market. The sector’s key highlight was Everstone Capital and Waymade Capital’s investment in Apothecon Group, which includes India-based Apothecon and US-based Navinta.
Among other notable PE deals, True North invested $270 million to acquire a 25% stake in Embio. Prime Venture Partners and Leo Capital invested $13 million in StainX Bioworks, while Singularity AMC, Rainmatter, Eight Roads Ventures, F-Prime Capital and angel investors invested $10 million in Immuneel Therapeutics.
