India’s pharmaceutical and healthcare sector recorded 65 deals worth USD 13.9 billion during the second quarter of 2026, according to Grant Thornton Bharat’s latest Pharma and Healthcare Dealtracker. While overall deal volumes declined 17 percent quarter-on-quarter, marking the lowest transaction activity in the past four quarters, total deal values remained robust, reflecting sustained investor confidence and strategic consolidation across the sector.

The quarter was dominated by Sun Pharmaceutical Industries’ USD 11.8 billion acquisition of Organon & Co., the largest overseas acquisition by an Indian pharmaceutical company to date. Even excluding this landmark transaction, overall deal values rose 12 percent over the previous quarter, indicating healthy investment momentum across pharmaceuticals and healthcare.

According to Bhanu Prakash Kalmath S J, Partner and Healthcare Industry Leader at Grant Thornton Bharat, the sector is witnessing a strategic transition, with Indian companies prioritising acquisitions that strengthen specialty portfolios, enhance global market access and build differentiated capabilities rather than pursuing scale alone. He added that investor interest continues to centre on innovation-led healthcare businesses, particularly in artificial intelligence-enabled care, genomics, oncology and advanced diagnostics.

Merger and acquisition (M&A) activity strengthened significantly during the quarter, with 35 deals valued at USD 13.2 billion. Transaction volumes increased 17 percent quarter-on-quarter, reaching their highest level in the past year, while deal values touched an all-time high. Outbound acquisitions accounted for 96 percent of total M&A value, highlighting the expanding global ambitions of Indian pharmaceutical companies. Domestic transactions continued to dominate deal volumes, while inbound activity also showed signs of recovery with four completed deals.

Private Equity and Venture Capital (PE/VC) investments moderated during the period, with 26 deals worth USD 444 million. Although transaction volumes fell 42 percent, deal values remained broadly stable, supported by larger average deal sizes. Nearly 89 percent of disclosed PE investments were below USD 50 million, underscoring investor preference for focused growth-stage investments in biotechnology, precision medicine, preventive healthcare, wellness and other innovation-driven businesses.

Capital market activity remained steady, with two Initial Public Offerings (IPOs) raising USD 58 million and two Qualified Institutional Placements (QIPs) raising USD 161 million. Major fundraisers included Krishna Institute of Medical Sciences’ USD 156 million QIP and Sai Parenteral’s USD 44 million IPO, reflecting sustained investor confidence in established healthcare and pharmaceutical companies.

The pharma and biotechnology segment led deal activity with 23 transactions worth USD 12.7 billion, driven by acquisitions in specialty pharmaceuticals, biologics, Active Pharmaceutical Ingredients (APIs) and established therapeutic portfolios. Hospitals recorded nine deals valued at USD 255 million, with deal values surging 254 percent over the previous quarter as consolidation accelerated across regional hospital networks, fertility centres and specialty healthcare providers.

Meanwhile, the health technology segment recorded three M&A deals worth USD 573 million, led by IKS Next Horizon’s acquisition of TruBridge, alongside continued private equity investments in digital healthcare platforms. Specialized healthcare themes—including women’s health, fertility, oncology, genomics, advanced diagnostics and AI-enabled healthcare solutions—remained key investment priorities throughout the quarter.