New Delhi : Private Equity/Venture Capital (PE/VC) investments into healthcare and related sectors for the first nine months of the year 2022 has seen a decline of 25 per cent, reporting value of deals in the pharma and active pharmaceutical ingredients (API), e-pharmacy and healthtech segments during the third quarter of the year.
According to the data from Venture Intelligence, a research service focused on private company financials, transactions, and their valuations, the first nine months of the year 2022, ending September, witnessed 101 deals with an announced value of $3.7 billion, as compared to 119 deals with announced value of $4.92 billion in the same period of previous year.
The third quarter from July to September, 2022, also reported a decline in funding, with 32 deals having an announced value of around $1 billion, as against $1.14 billion in the same period of previous year. The year 2021 witnessed a total of 158 deals with announced fund infusion of $6.2 billion.
During the three months ended September, 2022, hospitals and clinics segment witnessed a significant jump in terms of investment value, owing to the fund infusion into Sahyadri Hospitals and ASG Eye Hospitals, among others. Hospitals and Clinics segment reported five deals worth $656 million during the quarter, as compared to five deals with an announced value of $73 million during the same period of last year.
Biotech also reported a significant jump in deal value, at $76 million invested in three deals during the quarter ended September, 2022, as compared to $5 million in five deals during the same quarter of last year.
Investments into nutraceuticals also grew, with three deals worth $22 million during the third quarter of the year 2022, as compared to $1 million invested in one deal in the same quarter of last year.
While e-Pharmacy witnessed some of the large value deals during the quarter last year, reporting $504 million investment in the third quarter last year, the same quarter of this year attracted only two deals worth $44 million.
Pharma and API has reported two deals worth $36 million as against two deals worth $224 million during the third quarter of last year. Healthtech registered 11 deals worth $67 million, as against 17 deals worth $204 million during the same period of last year, said Venture Intelligence data.
Medtech registered three deals worth $86 million during the quarter ending September, 2022, as compared to five deals worth $93 million during the same period of previous year.
The top deals in the healthcare and related sectors during the nine months ended September, 2022, include the investment of Ontario Teachers Pension Plan into Sahyadri Hospitals ($315 million in August), investment of Abu Dhabi Investment Authority’s (ADIA) fund infusion into Intas Pharmaceuticals ($262 million), investment of US-based PE firm TA Associates into healthtech firm Zifo Technologies ($250 million), investment by Anchorage Capital Partners and Volrado Venture Partners into medtech firm Meril Life Sciences ($245 million), and investment by Kedaara Capital and General Atlantic into hospital firm ASG Eye Hospitals ($187 million).