Healthcare M&A deal value drops by nearly 30% in August 2024: GlobalData
Mergers and acquisitions in the healthcare sector experience a significant decline, while venture capital investments also see a reduction
As per GlobalData report, in August 2024, the healthcare sector experienced a notable decrease in deal value. The total deal value dropped by 29.6 per cent compared to August 2023. The industry reported 66 deals worth $7.5 billion, a significant decline from the average of 94 deals worth $18 billion in the previous 12-month period from August 2023 to July 2024.
Among the major deals in August 2024, Merck & Co announced its acquisition of CN201, a novel investigational clinical-stage bispecific antibody for the treatment of B-cell associated diseases, for approximately $1.3 billion. Otsuka America is set to acquire Jnana Therapeutics Inc, a clinical-stage biotechnology company, for about $1.1 billion. Crown Laboratories will acquire Revance Therapeutics, a biotechnology company, with an enterprise value of $924 million. These transactions accounted for 43 per cent of the total deal value reported in August 2024.
Venture capital investments also saw a decrease of 20.7 per cent in August 2024 compared to the previous year. The healthcare sector reported 84 venture capital deals worth $1.8 billion, down from the average of 104 deals worth $2.7 billion over the past 12 months.
Key venture capital deals in August 2024 included Borealis Biosciences Inc, which raised $150 million in a Series A round of financing to develop RNA medicine for kidney diseases. Outpace Bio Inc secured $144 million in Series B financing to advance AI-powered cell therapies into clinical development. Halda Therapeutics LLC raised $126 million in Series B financing to support clinical trials of RIPTAC drug candidates for prostate cancer and breast cancer.
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