Q3 2025

Healthcare M&A Update

In Q3, the S&P 500 Healthcare Industry Index increased by 1.8% and was outperformed by a 7.9% increase in the S&P over the same period.
The median EV/EBITDA multiple for reported private equity deals increased slightly to 12.2x in YTD 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 increased 8.1% in Q3 to 877 deals from 811 in Q2 and increased 10.5% from 794 deals in Q3 of the prior year.
As a % of total capital invested in M&A transactions, PE participation increased in YTD 2025 to 44.4% from 25.1% in 2024.
North America was the most active region in Q3 with 463 deals. Most notably in North America was Sanofi’s $8.9 billion acquisition of Blueprint Medicines, a Massachusetts-based developer of targeted therapies for allergy, inflammation, oncology, and hematologic conditions, in July 2025.