Industry Report: Healthcare Q1 2026 [Peakstone]

Key Takeaways

• 2025 healthcare M&A fell to 898 transactions
• Median deal value rose to $151 million, 25‑year high
• Average EV/EBITDA multiple stayed around 12.5×
• Provider stocks up 136% from 2015‑2025
• Cencora and Sanofi completed $5B and $2.2B deals

Summary

Healthcare M&A activity moderated in 2025, dropping to 898 transactions after a pandemic‑driven surge. Despite fewer deals, the median transaction value jumped to $151 million, the highest in 25 years, while EV/EBITDA multiples held steady near 12.5×. Public‑market returns diverged, with provider stocks delivering roughly 136% gain since 2015, outpacing health‑tech and life‑science peers. Large strategic acquisitions, such as Cencora’s $5 billion OneOncology deal and Sanofi’s $2.2 billion Dynavax purchase, underscore continued consolidation.

Pulse Analysis

The slowdown in healthcare mergers and acquisitions reflects a natural correction after the pandemic‑driven frenzy that pushed annual deal counts above 1,100 in 2023‑2024. Strategic buyers remain the dominant force, targeting high‑quality platforms that can deliver operational synergies and long‑term growth. This moderation does not imply waning interest; rather, it indicates a more disciplined market where only the most compelling assets attract capital.

Valuation metrics reveal that buyers are willing to pay a premium for scale and innovation. The median transaction value surged to $151 million, a 25‑year peak, while median EV/EBITDA multiples hovered around 12.5×, underscoring confidence in the sector’s cash‑flow stability. Such pricing dynamics suggest that investors anticipate robust demand for integrated care models, specialty services, and technology‑enabled solutions, reinforcing the attractiveness of healthcare as a resilient asset class.

Public market performance further highlights the sector’s divergence. Healthcare providers posted a 136% total return from 2015 to 2025, outpacing health‑tech and life‑science segments, while biotech lagged behind. High‑profile strategic deals—Cencora’s $5 billion acquisition of OneOncology and Sanofi’s $2.2 billion purchase of Dynavax—illustrate continued appetite for innovative therapeutics and oncology platforms. These transactions signal that large incumbents will keep shaping the market, driving consolidation and setting the stage for future investment opportunities.