Q2 2025

Healthcare M&A Update

In Q2, the S&P 500 Healthcare Industry Index decreased by 6.6% and was outperformed by the S&P 500, which increased by 10.2% over the same period.
The median EV/EBITDA multiple for reported private equity deals increased to 15.3x in 1H 2025 from 11.4x in 2024, but decreased for strategic deals to 8.7x from 20.9x in the prior year.
M&A deal volume in the sector decreased 0.6% in Q2 to 811 deals from 816 deals in Q1, but increased 11.7% from 726 deals in Q2 of the prior year.
North America was the most active region in Q2 with 441 deals. Most notably in North America was Johnson & Johnson’s $13.9 billion acquisition of Intracellular Therapies, a New Jersey-based developer of innovative treatments for diseases of the central nervous system, in April 2025.
Total capital invested in M&A transactions increased 79.4% in Q2 to $62.8B from $35.0B in Q1, in part due to the Intracellular Therapies deal mentioned above.