Healthcare Markets & Deal Roundup — Edition 6[Q3 FY’25]

October — December 2024 Key Highlights [Q3 FY’25]

Q3 of FY’25 has seen substantial deal activity with notable transactions across Pharmaceuticals, Healthcare Delivery, and Health Tech sectors.

The total deal value across Lifesciences, Healthcare Delivery, Devices, and other Healthcare sub-sectors exceeded US $900 Million, demonstrating robust investor confidence despite broader market volatility. The quarter was particularly marked by:

Strong public market activity in the pharmaceutical sector with successful IPOs of Senores Pharmaceuticals and Sai Life Sciences, together raising over ₹3,600 croreStrategic focus on specialized capabilities through acquisitions and partnerships, as seen in deals like Lupin-Huminsulin and Mankind-InnoventSignificant growth capital deployment in technology-enabled healthcare platforms and diagnostic servicesContinued sovereign and pension fund interest in platform plays, evidenced by GIC’s follow-on investment in Asia Healthcare Holdings and Ontario Teachers’ investment in Omega Healthcare

Pharmaceuticals

· Deal value from October — December 2024 exceeded $630 Mn across various pharmaceutical segments, with significant activity in specialty pharma and contract manufacturing

· Strong capital markets activity with successful IPOs of Senores Pharmaceuticals (₹582 crore) and Sai Life Sciences (₹3,042 crore), indicating continued public market appetite for specialized pharmaceutical companies with differentiated capabilities

· Strategic focus on diabetes and oncology segments through acquisitions and licensing deals, as evidenced by Lupin’s Huminsulin acquisition and Mankind’s Sintilimab partnership

· Increased investment in contract development and manufacturing organizations (CDMOs), particularly those with specialized capabilities in biologics and complex formulations, demonstrated by deals like Quadria’s investment in Aragen Life Sciences and 360 ONE’s investment in OneSource

Public Markets — A Snapshot

Private Markets — A Primer

Deal Round Up

1. Lupin Limited acquired the Huminsulin® portfolio from Eli Lilly in India, transitioning from its previous distribution arrangement to complete ownership. The transaction includes multiple insulin formulations (R, NPH, 50/50, and 30/70) and represents a strategic expansion in the diabetes care segment. The deal aligns with the broader industry trend of local players acquiring established brands from global pharmaceuticals to strengthen their chronic care portfolios

2. Mankind Pharma Ltd secured exclusive rights for Sintilimab in India through a partnership with Innovent Biologics. The immunotherapy drug, currently marketed as TYVYT® in China, will require phase 3 clinical trials and regulatory approvals for the Indian market. The agreement structures manufacturing responsibilities with Innovent while Mankind manages registration and commercialization. The deal includes milestone-based payments and shows increasing interest from generics in bringing innovative oncology products to the Indian market

3. Quadria Capital is investing approximately $100 million for a 10% stake in Aragen Life Sciences, valuing the CRDMO at $1.2 billion. The investment’s structure — 2/3rd primary capital for expansion and one-third secondary — reflects the industry’s need for significant capital to build specialized infrastructure, particularly in biologics. The timing of this investment is strategic, coming amid global pharma companies’ efforts to diversify their development and manufacturing partners beyond China. Aragen’s strong financial metrics (FY24 revenue of ₹1,675 crore with EBITDA margins of ~27%) and deep relationships with global pharma companies position it well for its planned IPO in the next 12–18 months

4. Senores Pharmaceuticals’ IPO raised ₹582 crore through a combined fresh issue and offer-for-sale structure. The offering saw significant oversubscription across investor categories — QIBs (94x), NIIs (96x), and retail (89x). The company’s market debut at ₹600 represented a 53% premium to the IPO price of ₹391, reflecting strong investor appetite for specialized pharmaceutical manufacturers focusing on complex formulations

5. Sai Life Sciences completed its IPO raising ₹3,042crore, with notable institutional investor participation at 30.90x subscription. The small-molecule focused CDMO listed at ₹660, a 20.2% premium to its ₹549 issue price. The capital raise aims to address debt obligations and support growth initiatives. The successful listing indicates continued investor confidence in the CDMO sector, particularly for companies with established R&D capabilities and international client relationships

6. Laurus Bio secured ₹160 crore funding, with ₹120 crore from Eight Roads Ventures and F-Prime Capital, alongside a ₹40 crore co-investment from parent Laurus Labs. The company will utilize the capital to expand its microbial-fermentation capabilities and enhance manufacturing infrastructure

7. Suven Pharmaceuticals announced a strategic expansion into specialized drug conjugates through a $64.4 million acquisition of 56% stake in NJ Bio. The transaction structure includes a $15 million primary investment and secondary share purchase, with options for complete ownership after five years. The deal provides Suven entry into the growing antibody-drug conjugates (ADCs) segment, with access to NJ Bio’s Princeton-based operations and its Indian subsidiaries

8. Beta Drugs raised ₹117 crore from HealthQuad Fund II and other investors including a Singapore-based investment fund, representing a minority stake sale. The vertically integrated oncology formulations company, which has expanded to over 46 countries with regulatory approvals from Brazil and EU, plans to utilize the funds for global expansion and operational enhancement

9. OneSource Specialty Pharma received investment from 360 ONE Asset, marking a strategic growth capital infusion. The company operates five manufacturing facilities, including four US FDA approved sites, specializing in biologics, complex injectables, and drug-device combinations. The transaction aims to support OneSource’s expansion in specialized pharmaceutical manufacturing, particularly in areas like GLP-1 drugs and novel biologics, reflecting the growing demand for complex pharmaceutical manufacturing capabilities

Hospitals

· Strategic investments focusing on single-specialty healthcare models continue to gain traction, with platforms like Asia Healthcare Holdings securing significant follow-on funding ($150 million) from sovereign wealth funds

· Growing interest in reproductive healthcare and fertility services, reflected through investments in specialty chains targeting tier-2 market expansion

· Innovative healthcare delivery models emerging through partnerships between investors and operators, aimed at improving accessibility and affordability in underserved markets

Public Markets — A Snapshot

Private Markets — A Primer

Deal Round Up

1. Asia Healthcare Holdings (AHH) secured an additional $150 million investment from GIC, following its $170 million investment in February 2022. The platform, backed by GIC and TPG, has deployed approximately $300 million across specialty hospital chains including Motherhood Hospitals, Nova IVF, and Asian Institute of Nephrology & Urology

2. A4 Hospitals, an IVF healthcare provider based in Tamil Nadu, raised growth capital from 360 ONE Asset’s healthcare-focused fund. Operating across eight centers, the company provides comprehensive fertility services from IVF treatments to perinatal care. The funding will support expansion across southern India

3. Oncare secured $1 million in seed funding led by Huddle Ventures, with participation from TRTL Ventures, Cloud Capital, and DeVC. The company partners with 50–100 bed hospitals to create dedicated oncology wings, aiming to reduce treatment costs by up to 40%. The funding will support expansion to 10 new centers across Delhi-NCR, Bangalore, and Jaipur, demonstrating innovation in making specialized healthcare more accessible in tier-2 markets

Other Healthcare

· Technology-enabled healthcare services attracting significant investment interest, with deal sizes growing larger compared to the previous quarters

· Diagnostics sector witnessing consolidation through strategic acquisitions and growth capital investments, particularly in specialized testing segments like oncology diagnostics

· Continued investor confidence in health-tech platforms offering subscription-based models and AI-enabled solutions, with multiple companies raising growth rounds from global investors

· Cell and Gene Therapy startups beginning to attract early-stage funding, indicating emerging investor interest in advanced therapeutic platforms in the Indian market

Deal Round Up

1. Ontario Teachers’ Pension Plan and Goldman Sachs Alternatives announced a major investment in Omega Healthcare Management Services, a technology-enabled healthcare management solutions provider. The transaction, which values Omega at $1.8 billion, sees Ontario Teachers’ acquiring a majority stake from Everstone Capital. With 35,000 employees across multiple delivery centers, Omega’s platform focuses on revenue cycle management and healthcare operational efficiency improvements through technology integration

2. Core Diagnostics was acquired by Metropolis Healthcare for ₹246 crore in a combined cash and stock transaction (55% cash, 45% share swap). The Delhi-NCR headquartered specialized diagnostics player, with nine labs including NABL and CAP accredited facilities, generates revenue of ₹110 crore. The acquisition strengthens Metropolis’s position in advanced cancer testing and expands its presence in north and east India.

3. OneCell Diagnostics raised $16 million in Series A funding led by Celesta Capital, with participation from Tenacity Ventures, Cedars Sinai, and others. The AI-powered cancer diagnostics startup, headquartered in India and Silicon Valley, focuses on precision oncology liquid biopsy diagnostics. The funding will support its expansion into the US market with its OncoIndx Ikon test for circulating tumor cells

4. Orange Health secured $12 million in funding led by Amazon Smbhav Venture Fund, with participation from Accel, General Catalyst, and others. The diagnostics platform, which provides rapid testing services including at-home sample collection, operates across four metro cities. Currently processing 5,000 diagnoses monthly, the company plans to strengthen its presence in existing markets before expanding to other tier-1 cities

5. Even Healthcare raised $30 million led by Khosla Ventures, with participation from Founders Fund and others. The managed care provider, which offers subscription-based healthcare services including consultations and hospitalization coverage, plans to utilize the funds for launching hospital operations in Bangalore and scaling patient care processes

6. East Ocyon Bio, an allogeneic Cell & Gene Therapy startup, secured $4.2 million in seed funding led by Aeravti Ventures and Micro Labs. The company focuses on CAR-NK and CAR-gamma delta T cell therapies, with plans to establish GMP manufacturing facilities and conduct Phase I clinical trials

7. Dezy (formerly Smiles.ai) raised $6 million as part of a larger $8–10 million round from Alphawave, Chiratae Ventures, and Peak XV’s Surge. The dental healthcare platform, which serves over 3,000 patients monthly across multiple cities, will use the funding to expand its clinic network in Bangalore and Hyderabad.

8. Healthify (formerly Healthifyme) secured $20 million in funding led by Khosla Ventures and LeapFrog Investments, with participation from Claypond Capital. The health and wellness platform, which has developed AI tools including the conversational coach Ria, will focus on US expansion and enhancing its artificial intelligence capabilities

LoEstro Advisors is an investment banking firm specializing in sell-side fundraise and M&A advisory, along with a strong consulting arm.

Over the last four years, we have grown to be one of India’s largest (in terms of M&A transactions) homegrown boutique investment banks, with $1billion + worth of combined deals closed across education, healthcare, consumer, and technology sectors.