Steady progress for UK healthcare M&A in H1, report finds

UK M&ADespite ongoing global geopolitical instability, UK healthcare M&A deals have continued to gain traction, according to a new report by investment firm Heligan Group.

Ramesh Jassal, Partner, Corporate Finance, Healthcare at Heligan Group said: “Interest in UK healthcare assets remains steady despite global geopolitical uncertainty, highlighting the relative stability and attractiveness of the market.”

Overall, “47 percent of inbound deal volume was in the pharmaceutical and life science sub-sector, reiterating the UK’s safe haven status”, according to the report.

Yet the market uncertainties were reflected in figures for Pharma and life science deal volumes. They showed a decrease to “24 percent of total activity compared to 29 percent in H1 2024. This was due to regulatory uncertainty in the US following changes at the FDA, NIH, and CDC and broader political and economic headwinds”.

“H1 2025 continues to be a buyers’ market, and there were 134 [M&A} deals in the UK healthcare space, which is broadly in line with the 130 deals seen in H1 2024. Given the retrospective addition of deals, it is likely that the number of deals in H1 2025 was higher, highlighting the positive sentiment that markets have for 2025.

“Health and Social Care deals made up 16 percent of outbound transactions, a slight decline, while domestic H&SC activity rose to 70 percent. This suggests a growing focus on UK-based opportunities amid global uncertainty,” Jassal added.

Strategising M&A investments alongside global dynamics

“North America remains the number one investor in the UK, and the UK continues to invest strongly in the US. I foresee this trend continuing, due to preferential tariff treatment between the US and UK versus Europe. Trade buyers dominate the landscape, accounting for 84 percent of deals, while private equity remains focused on bolt-on acquisitions”.

Looking ahead, “many international deals completed in H1 2025 were based on assumptions and strategies formed under the previous geopolitical and regulatory paradigm, well before the US elections. Under the new paradigm, some acquirers may pause to reassess their positions. However, others have already adapted and are actively pursuing new opportunities in response to shifting global dynamics”, concluded Jassal.

These UK M&A report findings follow the UK government’s publication of its life sciences-specific plan last month. This is part of the updated Industrial Strategy, which aims to improve data access, boost investment in clinical trials and support more streamlined regulation, The BioIndustry Association (BIA) Chair Dr Daniel Mahony explained. These proposals align with the government’s goal to position the UK as the leading life sciences economy in Europe by the end of 2030.