|
PE/VC exit in terms of value in healthcare & related sectors grows 56% to $4.30 billion in 2022
|
|
Gireesh Babu, New Delhi
February 28 , 2023
|
|
|
Healthcare and related sectors including pharmaceuticals and bulk drugs industry has witnessed a 56 per cent increase in exit, in terms of value, by Private Equity/Venture Capital (VC) investors, led by exits in the hospitals and clinics and business to business software sectors.
According to data from Venture Intelligence, a research service focused on private company financials, transactions, and their valuations, the calendar year 2022 has seen 26 exit deals for a total value of $4.30 billion, as compared to 37 deals for a total of $2.76 billion in the year 2021. The exit value is the highest in five years from 2018, as the total exits in terms of value during 2018 was $1.39 billion, 2019 at $1.84 billion and 2020 at $856 million.
The hospitals and clinics sector has reported the exit values more than double of what it has seen in the previous year. The sector registered 17 exits for an amount of $2.73 billion in 2022 as compared to 11 deals worth $1.17 billion in the previous year. business to business software industry has seen two deals worth $974 million in 2022, as against two deals with a total value of $76 million in the year 2021.
However, the pharma and active pharmaceutical ingredients (API) sector reported PE/VC investors exiting for $401 million in two deals in 2022, as compared to $736 million in 15 deals in the previous year. The nutraceuticals industry has seen $121 million in three exits during the year.
In the e-pharmacy sector, there was one exit deal worth $70 million as compared to three deals worth $352 million in the previous year.
Hospitals and clinics sector has seen three of the top five deals in terms of return multiples, of which two were British International Investment, UK government’s development finance institution, selling stakes in Rainbow Hospitals, which is specialising in paediatric and maternity care. The investor made a partial exit in May, 2022 for $104 million from the hospital, for a return multiple of 7.36x, followed by a full exit for $132 million in December, with a return multiple of 8.67x, says Venture Intelligence data.
Another deal in the sector was the exit of Kedaara Capital from Telangana-based Vijaya Diagnostic Centre for $57 million in March, 2022, registering a return multiple of 5.08x.
The two other deals in the top five exit deals during the year was in pharma and API sector, led by Singapore-based investor Temasek Holding’s exit from Intas Pharmaceuticals, selling stakes to Abu Dhabi Investment Authority (ADIA), for $261 million in April, 2022, for a return multiple of 7.54x.
The other deal in the pharma and API sector, which is in the top five list is the exit of venture capital major Sequoia Capital India and India-focused private equity firm ChrysCapital from Curatio Healthcare for $140 million in September 2022. The return multiple for Sequoia Capital was 6.50x and for ChrysCapital was 4x, in the deal in which Torrent Pharmaceutical acquired shares in the Chennai-based dermatology player.
The top five exits in healthcare and related sectors in terms of value include private equity firm KKR exiting from Max Healthcare Institute in August, 2022 for $1.18 billion, Asian private equity firm Baring Asia exiting from Citius Tech in the business to business software segment, selling stakes to Bain Capital and TPG Growth for $960 million in September, 2022 and KKR’s an earlier sale of stake in Max Healthcare Institute in March, 2022 for $434 million.
Temasek’s exit from Intas Pharmaceuticals and private equity firm Carlyle’s sale of equity in Medanta Medicity in November, 2022 for $209 million were the other two major deals in terms of value that took place during the year.
|
|
|
|
|
|
|
|
TOPICS
|
That foods might provide therapeutic benefits is clearly not a new concept. ...
|
|
|
|
|