In 2024, the mergers and acquisitions (M&A) sector within Health Industries experienced a significant contraction both globally and nationally. Deal volumes dropped by 20% worldwide and overall deal value declined by 30%. In Italy, the number of announced transactions reached 91, marking a 23% decrease compared to the previous year. Despite this slowdown, 2025 opens with cautious optimism. Within Health Services, consolidations mainly involved diagnostic centers, analysis laboratories, veterinary clinics, and elderly care residences. The Pharma & Life Sciences sector recorded 61 transactions, supported by activity from large pharmaceutical companies. These insights emerge from the PwC Global & Italian M&A Trends in Health Industries and Outlook 2025, which provides a comprehensive overview of M&A trends in the healthcare industry and its sub-segments.
A Complex Macroeconomic Context but Optimism for 2025
In Italy, the Health Industries sector saw a reversal in completed deals following the rebound observed in FY23 (91 transactions in 2024 vs. 118 in 2023 and 96 in 2022). This decline should be viewed within a broader challenging M&A environment, affected by adverse macroeconomic conditions such as high interest rates, economic slowdown, weaker corporate performance, difficulties in accessing credit, and high price expectations from sellers.
The gradual reduction of interest rates in Europe, the growing pressure on dealmakers to invest available liquidity, and the dynamism of national pharmaceutical companies foster cautious optimism for 2025. The most dynamic sectors remain diagnostic services, consumer healthcare, nutraceuticals, and the CDMO (Contract Development and Manufacturing Organizations) segment, which provides comprehensive drug development and manufacturing services for pharmaceutical and biotech companies.
Nicolò Brombin, Partner at PwC Italy and HI Deals Leader, highlights that despite the complex macroeconomic landscape and a decline in transactions in 2024, the Italian Health Industries sector remains highly attractive. According to Brombin, the slowdown appears to be a temporary pause in certain sales processes rather than a genuine loss of interest in the healthcare and pharmaceutical sector. National pharmaceutical companies “have continued leveraging their ample cash reserves for strategic acquisitions” aimed at expanding product offerings and strengthening their pipelines. This trend, he adds, “is expected to continue into 2025, potentially leading to transformative deals” that could result in significant corporate restructuring among major Italian pharmaceutical firms.
Another key element is the growing interest from Private Equity funds, which view the sector as resilient, profitable, and countercyclical. “The available liquidity and the pressure to invest it should support M&A activity in 2025.”
M&A Activity in 2024
Globally, M&A activity in the Health Industries sector contracted by approximately 20% in terms of volume and 30% in total deal value. In Italy, the Health Industries sector ended 2024 with 91 announced transactions, down from 118 in 2023, reflecting a 23% decline in volume in line with global trends. This reduction affected both the Health Services segment (30 deals in 2024 vs. 45 in 2023) and the Pharma & Life Sciences segment (61 deals in 2024 vs. 73 in 2023).
Key transactions announced in FY24 include Recordati/Enjaymo (Sanofi), DOC Generici/Muscoril (Sanofi), Alfasigma/Jyseleca Business, Fidia Farmaceutici/Sanofi Global Gynecology & Gastroenterology Brands Portfolio, Ceres Pharma/Aescolapius Farmaceutici, SPA Società Prodotti Antibiotici/Idi Farmaceutici, ICG/Vision Group, Ardian/Vista Vision, Montefiore Investment/Demenego, Safilo/Marcolin SpA, Luxottica/Espansione Group, Ardian/Masco Group, 21Invest/Omega Pharma Srl, Charme Capital/Animalia, Dea Capital/COC Farmaceutici, Nutracare Group/Sochim, and Fondo Italiano/Intrauma. Additionally, the consolidation of major national healthcare service platforms such as Bianalisi, Lifenet, Affidea, and Over continued.
Of the 91 announced transactions in 2024, 45% were completed by financial investors, a slightly lower incidence than in previous years (54% in 2022 and 2023), while 2024 saw increased activity from strategic investors (55% of closed deals).
M&A Analysis by Segment
Health Services
M&A activity was primarily driven by consolidations among diagnostic centers, analysis laboratories, veterinary clinics, and elderly care facilities—highly fragmented sectors. Additionally, these dynamics expanded into new areas, such as ophthalmology and aesthetic medicine. The growing demand for private healthcare, accelerated post-pandemic, presents new growth opportunities for private operators. However, the sector faces significant challenges, including medical and nursing staff shortages and rising operational costs. To counteract margin pressure, consolidations will continue as a key strategy, fostering cost efficiencies, service expansion, and greater digitalization, with artificial intelligence playing an increasingly relevant role.
Pharma & Life Sciences
In 2024, the Pharma & Life Sciences sector recorded 61 M&A deals, driven by national pharmaceutical companies’ growth strategies. The availability of liquidity and portfolio rationalization by global big pharma players facilitated targeted acquisitions to fill market gaps and strengthen competitive positioning. Notable transactions include Recordati’s acquisition of Enjaymo (Sanofi) and DOC Generici’s acquisition of Muscoril (Sanofi), reaffirming the sector’s strong dynamism.
Private Equity funds have confirmed their strong interest in the CDMO sector, highlighted by DeA Capital’s acquisition of COC Farmaceutici and Nutracare Group’s acquisition of Sochim (Detressangle Capital). Interest in nutraceuticals remains strong, with deals such as 21Invest/Omega Pharma and Labomar’s acquisition of Laboratorios Entema SL. The medical devices sector also saw significant activity, including acquisitions finalized by Numantec Group (White Bridge).
As the industry moves into 2025, strategic acquisitions and private equity investments are expected to continue driving consolidation and innovation in the sector.