India is a major player in Asian healthcare transactions: Capital Bain

 India is a major player in Asian healthcare transactions: Capital Bain

India is a major player in Asian healthcare transactions: Capital Bain

The article states that India will host the 22nd in 2023, with a $4.6 billion agreement. In 2022, the transaction was valued at $4.7 billion.

India became a significant participant in the Asia-Pacific area in 2023, accounting for around 30% of the region's global health care transaction activity, according to a research by Bain Capital. Four reasons are listed in the research as having led to the rise in investment prospects in India's healthcare industry.

These included steady economic development, a government that welcomes industry, an established pharmaceutical manufacturing sector, and a burgeoning middle class that is prepared to pay for high-quality healthcare. According to the research, India sponsored 22 agreements totaling $4.6 billion in 2023. In 2022, or last year, the transaction was valued at $4.7 billion.

Notable exits occurred this year, including TPG selling Blackstone a majority interest in Care Hospitals. According to the research, the market has gotten more competitive as a result of global PE investors' increased confidence level investing substantial sums of money in India due to exits producing greater returns for investors.

More transactions are now evolving into regulated deals. The research claims that there is now less perceived risk associated with making significant investments in India. As an instance, Temasek now owns 59% of Manipal Hospitals, the second-largest hospital chain in India in terms of beds.

Indian health care customers who are prepared to pay for high-quality services are contributing to this increase. According to S&P Global statistics, government spending on health care has climbed dramatically over the last ten years (from around 29% of total health spending in 2014–15 to approximately 39% in 2021–22), and this trend is predicted to continue.

This increase in health care transactions has also been facilitated by India's reputation as a potent center for pharmaceutical manufacture. The government's support for the industry is shown by India's contribution to vaccine supply during the COVID-19 epidemic and initiatives like the Production Linkage Incentive Program. For instance, in September 2023, the PE firm Advent International purchased the majority of CDMO (Contract Drug Manufacturing Organization) business Suven Pharma.

Furthermore, a few insurtech, online fitness, and digital health services have caught the interest of Indian customers. According to the analysis, Indian enterprises working at the nexus of healthcare and technology still have solid long-term foundations, even if deal-making in the field of digital health has been sluggish. This is particularly true given that the younger generation is ready to connect digitally. stays powerful.