According to recent data captured in the LevinPro HC database, the healthcare M&A market in April 2023 saw a total of 185 deals, an increase from the 169 deals in March 2023, yet a slight decrease from the 189 deals we saw in April 2022.
The busiest sector in April 2023 was Physician Medical Groups (PMG), with 47 deals, followed by Other Services with 41 deals and eHealth with 24 deals. Private equity firms and their portfolio companies were responsible for acquiring 70 of the targets in April, making up 38% of all the deals announced during the month.
One sector that saw a significant rise in deal totals was Medical Devices, with 12 deals announced in April 2023, compared to only three deals announced in March, indicating a renewed focus on healthcare technology.
The Managed Care sector also experienced a rise in M&A during the month of April. After the entire month of March with no Managed Care deals announced, the market seems to have rebounded, with five deals announced during April 2023.
While some sectors thrived, others experienced a significant drop in deal totals. Behavioral Health Care, for example, saw just four deals in April 2023, down from eight in March 2023 and nine in April 2022.
In April, the healthcare M&A market saw several high-profile deals with multi-billion dollar price tags, mostly in the Biotechnology sector. Big players like Merck & Co, Astellas Pharma and GSK Plc invested heavily to expand their foothold in the market. These acquisitions signify a continued push for growth and innovation in the biotech industry, as companies seek to develop new products and stay ahead of the competition.
Other large acquirers during April, this time in the PMG space, were TPG and AmerisourceBergen Corporation. The two companies announced on April 20 that they agreed to acquire OneOncology from General Atlantic, a leading global growth equity firm. This transaction was valued at $2.1 billion, a rare, yet welcome instance in a sector where deal prices are typically not disclosed.
May is already off to a slow start. A week into the month, there have been 34 Healthcare M&A deals announced. While this may seem like a fast pace, we are already 37% behind the 54 deals announced during the first week of April 2023. We will continue to watch the market carefully over the next few weeks to see if deal totals pick back up as we move into the second half of the quarter.
