Nelson Advisors interviewed by Mergermarket: European healthcare M&A comeback in 2025 lays foundations for robust year ahead
- Nelson Advisors
- 2 hours ago
- 2 min read
European healthcare M&A comeback in 2025 lays foundations for robust year ahead
Europe’s healthcare M&A is poised to maintain strong momentum in 2026 following this year’s rebound in deal activity and renewed market confidence.
“The sector is in a flywheel of productivity with drivers including ageing populations, workforce shortages, and technology adoption,” said Lloyd Price, Partner at Nelson Advisors.
Following the turbulent tariff and regulatory environment at the start of 2025, the market is entering a period of relative confidence, he added.
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Pharma searches for blockbusters
Biopharma has undeniably been given a turbo-boost by a craze over GLP‑1 agonists for their weight-loss effects as well as downstream protection from cardiovascular disease and diabetes, Price said. Patent cliffs in big pharma pipelines are driving acquisitions of potential new blockbusters, he added.
Medical devices and equipment suppliers were an important driver of dealmaking this year as healthcare systems seek to cut labour costs and reduce massive elective care backlogs after the COVID-19 pandemic, Price said.
The public healthcare backlog is leading to growth in private healthcare clinics, which then need their own consumables, Price said.
Digital health is expected to see strong growth, with “blockbuster” digital health IPOs from US- based Hinge Health and Omada Health holding their prices. This rebuilds confidence in unit economics and profitability in public markets, Price said.
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Cross-border attractions
A weaker pound and euro make European companies effectively cheaper for US buyers than domestic assets, Price said. Combined with improving financial performance, that’s a major draw right now, he added.
Indeed, 2025 has seen an increase in inbound M&A, with volumes YTD up by a factor of 2.5 YOY from EUR 7.4bn in 2024 to EUR 18.1bn.
AI impact on CROs, CDMOs double-edged sword
"People want to catch up with the AI trend. Boards and CEOs are looking to buy a lot of tech and teams, ” Price said, citing ambient voice technology as an example.
All in all, with clear fundamentals for dealmaking in place, supported by major demographic and sector digitalisation trends, the European healthcare market can look forward to a solid 2026.
"We've had 18 months of surprises, so everyone's careful about making the wrong decision. But now the waters are calmer. What are we waiting for?" Price said.
'European healthcare M&A comeback in 2025 lays foundations for robust year ahead' by Jonathan Smith and Anahita Sawhney.
