|
PE/VC investments into healthcare and related companies decline by 12% in FY 2023
|
|
Gireesh Babu, New Delhi
May 30 , 2023
|
|
|
After a year of record performance during the financial year 2021-22 in Private Equity/Venture Capital (PE/VC) investments into the healthcare and related companies in the country, the financial year 2022-23 has reported a decline of 12.2 per cent in value terms as compared to the previous year. The number of deals declined by 33 per cent during the comparable period.
According to data from Venture Intelligence, a research service focused on private company financials, transactions, and their valuations, the PE/VC investments into healthcare and related companies has seen a decline in terms of value to $5.22 billion in 113 deals during the 12 months ended March, 2023, as compared to $5.95 billion in 169 deals, which is the highest in four years, in the financial year 2021-22.
Compared to the last quarter of the fiscal year 2021-22, the deal value has seen a decline to $841 million in 31 deals during the fourth quarter ended March, 2023. In the fourth quarter of the previous fiscal year, the industry has seen fund infusion of $1.4 billion in 45 deals from the PE/VC firms.
Investments into pharma and active pharmaceutical ingredients (APIs) has seen a decline of 9.6 per cent in value of investments during the year - the sub-sector attracted $1.53 billion in 10 deals in FY 2023, as compared to $1.7 billion in 19 deals in FY 2022.
Hospitals and clinics sub-sector have reported a growth in attracting funds of $1.78 billion in 25 deals, as compared to $668 million in 19 deals during the last quarter of the fiscal 2023.
Business to business software sector, including Software as a Service (SaaS) has also seen an increased fund infusion at $ 676 million in 12 deals as compared to $256 million in 16 deals from April, 2022 to March, 2023. Healthtech has also seen a decline in fund infusion, at $557 million investment in 34 deals as compared to $1.05 in 64 deals during the 12 months of previous fiscal year.
Medical Technology, a sub sector which attracted $373 million in 13 deals in the previous year, has a marginal decline in funding with a value to $337 million in 12 deals in 2022-23.
E-pharmacy, which has seen investors flocking in during the year 2021-22 with high value transactions bringing in $1.36 billion in 10 deals, has reported a decline in PE/VC investment at $188 million in four deals during the year 2022-23.
Fund infusion into the biotech sector, however, experienced a growth at $95 million in five deals as against $50 million in eight deals in the previous year.
The nutraceuticals industry also witnessed a decline in funding activity with $32 million invested in four deals, as compared to $50 million in eight deals during the previous fiscal year.
The last quarter of 2022 has shown increased funding in the hospitals and clinics sub sector compared to the same period of previous fiscal year. PE/VC investments into hospitals and clinics during the period went up to $428 million in seven deals as compared to $262 million in five deals during the same period of 2021-22, says Venture Intelligence data.
Pharma and API industry has seen decline in fund infusion at $175 million in two deals, as against $262 million in seven deals during the same period of previous year.
The MedTech sector attracted $117 million in five deals during the last quarter, compared to $255 million in three deals during the same period of previous fiscal year. Healthtech has also seen the fund infusion declining to $76 million in seven deals, as compared to $368 million in 18 deals during the same period of previous year.
In terms of the top five investments into the sector, Suven Pharmaceuticals raising $762 million in December, 2022 from Advent International topped the deals in terms of value, followed by Asian Institute of Gastroenterology raising $316 million from Baring Asia in July, 2022 and Sahyadri Hospitals raising $315 million from Ontario Teachers Pension Plan in August, 2022. The other major deals in the healthcare and related sector during the year 2022-23 include VLCC Wellness raising $300 million from Carlyle in January, 2023 and Intas Pharmaceuticals raising $262 million from Abu Dhabi Sovereign fund Abu Dhabi Investment Authority (ADIA) in April, 2022, according to the data.
|
|
|
|
|
|
|
|
TOPICS
|
That foods might provide therapeutic benefits is clearly not a new concept. ...
|
|
|
|
|