Welcome to this week’s edition of TOPICAL WEDNESDAY! Today, we cover the major deals across the Indian healthcare sector.
The Indian healthcare sector continues to heat up, with a surge in new product launches, mergers & acquisitions, and corporate spin-offs. Why wouldn’t it? The market is enormous and growing rapidly. Even with this rise in activity across organized healthcare subsegments, supply still falls short of the demand posed by India’s expanding population and evolving disease burden.
Take hospitals, for instance. According to a recent ET article, India has just 16 beds per 10,000 people, alarmingly low compared to most developed and emerging markets. The country needs 100,000 additional beds over the next 5–7 years to meet the rising demand driven by non-communicable diseases like diabetes, cardiac disorders, and cancer. That’s a sobering reality, highlighting just how basic our current healthcare infrastructure is.
On the positive side, the Indian hospital sector has been booming post-COVID, helped by better pricing, rising insurance coverage, and a shift toward complex procedures such as transplants. As of FY24, the Indian hospital sector was valued at ~$137 Bn and is projected to grow at a CAGR of ~8% to $265 billion by FY33. The broader private healthcare market is expected to expand even faster, at 12–14% CAGR.
This growth momentum extends across multiple verticals, making it no surprise that activity is accelerating. This momentum exists because the sector remains fundamentally underpenetrated, offering a vast headroom.
With that, let’s explore few of the most significant recent developments across India’s healthcare ecosystem.
Hospital Sector: Ongoing Consolidation
1. Apollo Hospital Group Spin-off: Digital Health & Pharmacy Unit (Apollo HealthCo + Keimed)
Date: June 30, 2025
Deal Value: Rs 16,300 Cr (FY25 revenue of carved-out units)
Apollo Hospitals, India’s largest listed healthcare chain, has announced the demerger of its digital health and pharmacy businesses into a standalone entity.
This new entity will also house Keimed, the country’s largest wholesale pharma distributor. Together, they form India’s biggest omnichannel pharmacy and distribution platform.
For the core hospital business, the move is value-accretive. It is expected to reduce the valuation discount at which Apollo trades compared to peers and improve the company’s overall margin profile by separating out the lower-margin pharmacy and telehealth verticals.
2. Manipal Health Enterprises – Sahyadri Hospitals
Date: Binding bids submitted June 23, 2025; Manipal confirmed frontrunner June 30, 2025
Deal Value: Rs 6,838 Cr (~USD 800 Mn)
Manipal Health Enterprises, led by Ranjan Pai, is set to acquire Sahyadri Hospitals, a regional chain with 11 facilities and 1,300 beds across Pune, Nashik, Ahilya Nagar, and Karad. Sahyadri is currently backed by Canada’s OTPP.
Other bidders included Blackstone, Fortis Healthcare, and EQT Partners. The intense interest reflects bullish sentiment among hospital majors and private equity, and highlights the ongoing consolidation trend where large, well-funded players acquire regional and specialty providers.
Pharmaceutical Sector: Focus on Specialty
(Source: Company)
- Torrent Pharma’s Acquisition of JB Chemicals & Pharmaceuticals
Date: June 30, 2025
Deal Value: Rs 11,917 cr for 46.39% stake; JB Chem valued at Rs 25,689 Cr (fully diluted basis)
Torrent Pharma is acquiring a controlling stake in JB Chemicals, one of India’s oldest pharma names. Known for flagship brands like Metrogyl and Nicardia, JB adds significant weight to Torrent’s portfolio.
The deal makes Torrent the 5th largest pharma company in India by revenue share (~4.6%), and the No. 1 player in cardiac therapy. It also provides entry into high-growth segments like gastrointestinal, and expands Torrent’s presence in CDMO via JB’s 11% revenue from contract manufacturing.
- Sun Pharma’s Acquisition of Checkpoint Therapeutics
Completion Date: May 30, 2025
Deal Value: ~$355 Mn (upfront cash; potential earn-outs)
Sun Pharma acquired Checkpoint Therapeutics to strengthen its cancer treatment business, particularly in immunotherapy. The main attraction was a drug called Unloxcyt, which has been approved by the U.S. FDA. This medicine, based on a compound called cosibelimab, helps treat a type of skin cancer by boosting the body’s immune system to fight the disease. The deal helps Sun Pharma move deeper into cutting-edge cancer therapies, with the addition of Unloxcyt having the potential to add tens of millions in annual sales.
- Emcure Pharmaceuticals Buys Out Remaining Zuventus Stake
Date: June 21, 2025
Deal Value: Rs 725 Cr
Emcure Pharmaceuticals has acquired the remaining 20.42% stake in Zuventus Healthcare, a former JV. This gives Emcure full control.
Zuventus is a strong domestic brand, particularly in neurology and orthopedics. The buyout will streamline internal operations, improve integration, and remove inefficiencies caused by minority shareholder alignment issues.
- Wockhardt’s Strategic Push with Zaynich
Date: July 1, 2025
Deal Value: Strategic in-house launch
Wockhardt launched Zaynich, a novel antibiotic combining zidebactam and cefepime, targeting drug-resistant infections. With ~97% efficacy in Phase III trials, it enters the $9 Bn AMR market.
The company is shifting focus from U.S. generics to niche anti-infectives and biologics. Wockhardt will seek USFDA approval by August 2025, with commercial launches in India and U.S. slated for FY26.
The drug will be manufactured via European partners, as Wockhardt explores licensing options and prepares for global rollout.
Diagnostics: Increasing Competition
- Metropolis Healthcare’s Acquisitions:
Dr. Ahuja’s Pathology & Imaging Centre (DAPIC)
Date: April 7, 2025
Deal Value: Rs. 35 Cr
Metropolis Healthcare announced the acquisition of Dr. Ahuja’s Pathology & Imaging Centre (DAPIC) in Dehradun, a diagnostics brand with 2 labs, 11 patient service centers, and 9 hospital labs. DAPIC offers pathology and radiology services, including ECG, X-ray, and ultrasound. This deal strengthens Metropolis’s presence in North India, a region where it had comparatively lower coverage, and aligns with its cluster-led expansion strategy. With this move, Metropolis continues its push toward becoming a pan-India diagnostic leader while consolidating fragmented local players under its umbrella.
Scientific Pathology (Agra)
Date: May 2025
Deal Value: Estimated between Rs. 55–83 Cr
Continuing its consolidation drive, Metropolis Healthcare also acquired Scientific Pathology, a leading diagnostics provider in Agra with strong brand recall and a business-to-consumer (B2C) presence in western Uttar Pradesh. The acquisition is a strategic fit to deepen Metropolis’s presence in Tier 2/3 cities, where organized players have low penetration but strong volume growth potential. Scientific Pathology’s trusted brand in Agra also gives Metropolis immediate local credibility, allowing cross-selling of premium tests and digital services. Post-deal, Scientific’s integration into Metropolis’ lab network is expected to boost test volumes and enhance operational efficiencies.
- IVF Access’s Acquisition of Proactive For Her
Date: Announced June 2, 2025
Deal Value: Not disclosed
IVF Access, a fertility clinic chain backed by Vertex Ventures, acquired Proactive For Her, a digital women’s health platform focused on diagnostics, teleconsultations, and preventive care. Proactive For Her offers preventive tests, home sample collections, and condition-specific diagnostics (PCOS, STIs, thyroid, etc.). This acquisition brings IVF Access closer to becoming a holistic women’s health platform, combining physical clinics with virtual diagnostics and early screening services. Proactive For Her’s strong digital brand and data-driven care model complement IVF Access’s brick-and-mortar strengths in fertility. It also marks a larger trend of hybrid care models emerging in diagnostics, where physical access and digital convenience go hand in hand, especially in women’s and sexual health.
- Amazon India’s Strategic Entry into Diagnostics via Orange Health Labs
Date: Launched June 22, 2025
Deal Value: Not a formal M&A; strategic partnership
Amazon India entered the diagnostics sector by launching at-home testing services through a partnership with Orange Health Labs in six major metros. Their value proposition is that customers can now book over 800 tests directly from Amazon, with sample collection promised within 60 minutes and results delivered digitally within 6 hours. This launch signals Amazon’s intent to become a health-tech aggregator in India, offering fast, tech-enabled healthcare access. This move could disrupt legacy diagnostics firms by bringing cost-effective, app-based services to the urban consumer. However, the company will have to get the fundamentals right first, such as lab consistency, quality control, logistics, pricing, and most importantly, trust. Entering the business is easy, but scaling it is a challenge.
Medical Devices: Strategic Shifts
Zydus Lifesciences’ Acquisition of Amplitude Surgical
Date: Announced March 11, 2025
Deal Value: €257 Mn (~USD 280 Mn) for an 85.6% stake
Zydus Lifesciences, one of India’s largest pharmaceutical companies, acquired a controlling stake in Amplitude Surgical, a French medical device firm specializing in lower-limb orthopedic implants such as hip and knee replacement systems. This marks Zydus’s formal entry into the global medical devices space, positioning it within the fast-growing orthopedic surgery segment.
Amplitude, with a presence in over 30 countries and annual revenues of €106 million, brings European manufacturing and R&D capabilities, global distribution channels, and nearly 430 employees. The transaction was priced at an 81% premium to Amplitude’s last traded share price.
Zydus plans to follow this with a tender offer for the remaining shares and delist the company, signaling its strategic intent to build a globally integrated medtech business adjacent to its core pharmaceutical operations.
Closing Thoughts:
Open any business newspaper (yes, some of us still enjoy flipping pages), and there’s bound to be a healthcare headline, another private equity deal, a pharma launch, or a diagnostics play. It’s easy to get lost in the noise. But zoom out, and you’ll notice something deeper: the sector isn’t just active, it’s evolving. Hospitals are consolidating, pharma is moving up the value chain into specialty, and diagnostics is becoming a battleground of convenience, tech, and trust.
Each subsegment is dancing to its own tune, driven by different economics and growth triggers. But together, they form an ecosystem that’s still early in its maturity curve. As investors, the goal isn’t to chase every headline, but to step back, identify where the real shifts are happening, and dive deeper where conviction builds.
Hopefully, today’s roundup helped you do just that, get a clearer picture of where Indian healthcare is headed, and where the most interesting stories might unfold next.
P.S. We recently hosted a webinar on the hospital industry, where our in-house healthcare expert Parth Agarwal broke it all down, from the sector’s evolution and key growth drivers to the most exciting opportunities today. It’s jargon-free, crisp, and built for investors who want real insights without the noise.
Give it a watch, it’s worth your time.
Disclaimer: This newsletter is for educational purposes only and is not intended to provide any kind of investment advice. Please conduct your own research and consult your financial advisor before making any investment decisions based on the information shared in this newsletter.
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