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Analysis

Life sciences and health care M&A Update: Q4 2024

Technological advancements such as 3D printing are revolutionizing medical device manufacturing, prosthetics, and organ transplantation by enabling cost-effective, patient-specific implants and custom prosthetics.

Life sciences and health care trends

  • Health care services
    The value of health services M&A deals rose from $63.0 billion to $69.0 billion year over year, reflecting sustained growth and confidence in the sector.1
  • Health care technology
    Major players like Andreessen Horowitz and General Catalyst are driving significant advancements in health care technology, with venture capital funding becoming increasingly concentrated among top funds.2
  • Life sciences and pharma services
    Pharmaceutical companies are digitizing clinical trials with EHR2EDC systems, remote monitoring devices, and wearable technology, supporting decentralized trials, improving patient engagement, and promoting diversity in clinical research.3
  • Medical devices and supplies
    Robotics is set to enhance surgical precision and reduce recovery times, with systems becoming more accessible and facilitating minimally invasive procedures across various specialties.4
  • Payors and payor services
    Medicare Advantage enrollment among dual-eligible individuals is expected to grow at an annual rate of 5% from 2022 to 2027, further elevating the demand for payor services and third-party administration services.5

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References

1 Heather Landi, “Healthcare poised for ‘robust’ M&A activity in 2025: PwC,” Fierce Healthcare, January 6, 2025.
2 Emily Olsen, “Digital health funding falls again in 2024: Rock Health,” Healthcare Dive, January 16, 2025.
3 Coforge, “Pharma & life sciences industry trends,” accessed December 2024.
4 Hanna Taller, “Top medtech trends to watch in 2025,” January 7, 2025.
5 Markets and Markets, Market Reports, accessed November 2024.

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