Life sciences and health care M&A update: Q2 2025

Demand for minimally invasive and remote monitoring solutions, as well as supply chain resilience amid ongoing macro volatility, continued to be key M&A drivers.

Life sciences and health care trends

  • Health care services
    In Q2 2025, M&A activity in health care services remained robust and overall transaction volume increased moderately from the previous quarter.1
  • Health care technology
    During Q2 2025, health care technology saw continued momentum, with digital health venture funding rising to $3.4 billion and a strong focus on AI-enabled platforms for workflow and clinical efficiency.2
  • Life sciences and pharma services
    The broader pharma services and software market, valued at $300 billion, is projected to expand at an 8.4% CAGR, surpassing $450 billion by 2030.3
  • Medical devices and supplies
    Notable innovations included FDA approval of the Edison Histotripsy System and expanded use of 3D-printed pediatric prosthetics, reflecting trends toward affordability and customization.4
  • Payors and payor services
    In Q2 2025, payors and payor services experienced moderate M&A activity, with continued investments in managed Medicaid, Medicare Advantage, and integrated “payvider” models.5

 

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References

1 Mark Johnston et al., Healthcare M&A quarterly update: Q2 2025, ECG Management Consultants, July 9, 2025.
2 Heather Landi, “Healthcare AI rakes in nearly $4B in VC funding, buoying the digital health market in 2025,” Fierce Healthcare, July 7, 2025.
3 Hugh Hoffman and Meghana Reddy, AGC’s insights – Pharma software & services (Q2 2025), accessed July 2025.
4 Custom Market Insights, Global remote patient monitoring device market 2025 – 2034, accessed March 27, 2025.
5 L.E.K. Consulting, “US healthcare forecast 2025: Trends shaping the year ahead,” L.E.K. Insights XXVII, no. 10 (February 10, 2025).

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