Friday’s here, Health Techies — and so is newsletter editor Claire Rychlewski. Today, we kick off with a look at Q3 M&A numbers and then bring your digest of this week’s news.
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1. Charted: Global health care M&A sinks
Data: Refinitiv; Chart: Thomas Oide/Axios
Worldwide health care M&A values in the first three quarters of 2022 totaled nearly $209 million — a more than 43% decline year-over-year, according to preliminary Refinitiv data shared exclusively with Axios.
Why it matters: The data reflects the sluggish pace of dealmaking relative to 2021’s M&A bonanza, as unfriendly financing markets, labor shortages and inflation have weighed heavily on the deal environment, Sarah writes.
Zoom in: The global health care industry produced 3,207 deals through Sept. 28, a 30% reduction over last year’s 4,611 deals over the corresponding period.
Between the lines: The percentage drop in valuations year-over-year exceeds that of deal count — pointing to muted M&A price tags on a deal-by-deal basis.
Of note: The biotech and health care equipment segments saw the greatest dips in total deal value, with 60% and 63% declines, respectively.
- Meanwhile, the health care providers and services subsegment witnessed a 10% decline in deal value globally, with pharmaceuticals falling off 14%.
Source: https://www.axios.com/pro/health-tech-deals/newsletters/2022/09/30/health-tech-catch-up-quick