Healthcare merger and acquisition (M&A) activity remained nearly steady in the first half of 2025, with 1,020 deals announced, according to data from the LevinPro HC platform. This represents a slight decrease compared to 1,025 transactions announced in the first half of 2024.
The difference in quarter-over-quarter activity was more pronounced in the second quarter of 2025, with 489 deals announced, marking an 8% drop from the 531 transactions in the first quarter of 2025, and a 4% decrease from the 511 deals in Q2:24. Disclosed spending in Q2:25 totaled $30 billion, a 55% decrease from $66.4 billion in Q1:25, and down 41% from $50.8 billion in Q2:24. For the first half of 2025, disclosed spending across all transactions reached $96.4 billion, a 17% decrease compared to $116.4 billion in the first half of 2024.
In Q2:25, the largest transaction by deal price was Sanofi’s acquisition of Cambridge, Massachusetts-based Blueprint Medicines, a global precision therapy company specializing in systemic mastocytosis, a rare immunological disease, and other KIT-driven diseases. Under the terms of the acquisition, Sanofi will pay $129 per share in cash at closing, representing an equity value of approximately $9.1 billion. According to its most recent annual report, Blueprint Medicines generated $508.8 million in revenue during FY 2024, and its EBITDA was a loss of $21.4 million. In the Biotechnology and Pharmaceutical sectors, which often see deals with large transaction values, Q2:25 recorded a combined deal value of approximately $17.9 billion, with Biotechnology at $16 billion and Pharmaceuticals at nearly $1.9 billion.
In the first half of 2025, the healthcare M&A market was led by robust activity in Physician Medical Groups and eHealth, according to data from the LevinPro HC platform. Physician Medical Groups topped the list with 232 deals, though this reflects a 14% decrease from 269 deals in the first half of 2024. In Q2:25, the sector saw 117 deals, up 2% from 115 deals in Q1:25 but down 12% from 133 deals in Q2:24. The eHealth sector followed as the second most active, with 160 deals announced, a significant 29% increase from 124 deals in the same period last year, driven by growing demand for digital health solutions. Q2:25 eHealth activity recorded 77 deals, down 7% from 83 deals reported in Q1:25, and 26% from 104 deals reported in Q2:24. The Other Services sector ranked third with 136 deals, down 12% from 154 deals in the first half of 2024. In Q2:25, 70 deals were announced in the Other Services sector, up 6% from 66 in Q1:25, but down 20% from 87 in Q2:24.
Behavioral Health Care saw strong growth, with 57 deals announced, a 63% increase from 35 deals in the first half of 2024, fueled by rising demand for mental health and substance use disorder treatment services. In Q2:25, the sector recorded 26 deals, down 16% from 31 deals recorded in Q1:25, but up 44% from 18 deals in Q2:24. Home Health & Hospice also grew modestly, with 55 deals compared to 52 in the first half of 2024, a 6% increase, reflecting a continuous shift toward home-based care. Q2:25 saw 27 deals in the Home Health & Hospice sector, down 3.6% from 28 in Q1:25 and 13% from 31 in Q2:24. In contrast, the Hospitals sector experienced a notable decline, with 23 deals announced, down 28% from 32 deals in the first half of 2024. Q2:25 recorded 12 deals, up 9% from 11 in Q1:25 but down 29% from 17 in Q2:24.
In the first half of 2025, Biotechnology deals fell to 69, a 13% decrease from 79 in the first half of 2024, while Laboratories, MRI, and Dialysis remained steady with 62 deals, nearly on par with the 61 deals announced in the same period last year. In Q2:25, Biotechnology recorded 29 deals, down 28% from 40 deals in Q1:25, and down 6% from 31 deals in Q2:24. Laboratories, MRI, and Dialysis saw 33 deals in Q2:25, up 14% from 29 deals in Q1:25, and up 50% from 22 deals in Q2:24. These trends underscore a dynamic healthcare M&A landscape, with significant growth in digital and outpatient care sectors balanced by slowdowns in capital-intensive areas.
“What’s striking about the healthcare M&A market in the first half of 2025 is its resilience, holding steady despite all the economic and regulatory roadblocks,” said Avery Swett, an Editorial Analyst at Irving Levin Associates, which tracks the data on its LevinPro HC platform. “Investors and acquirers are clearly betting big on digital health and mental health services to keep up with what patients want, while pulling back from more capital-intensive sectors like Hospitals. It’s a market that’s finding its footing by leaning into what patients need most right now.”
All quarterly results are published in The Health Care M&A Report, which is part of LevinPro HC, a research intelligence platform published by Irving Levin Associates, LLC. For information, or to order the reports, call 800-248-1668. Irving Levin Associates is celebrating more than 70 years of delivering exclusive M&A intelligence to its sophisticated audience of seniors housing and healthcare investors. The company was established in 1948 and has offices in New Canaan, Connecticut and North Bethesda, Maryland. The company publishes research reports and newsletters and maintains databases on the healthcare and senior housing M&A markets.
