Life sciences and health care M&A update: Q3 2025

In Q3 2025, M&A activity in health care services showed strong signs of growth, with a significant increase in total US deal value, compared to Q3 2024.

Life sciences and health care trends

  • Health care services
    Investors continued to prioritize ambulatory, outpatient, and specialized care platforms, while growing interest emerged in behavioral health and home-based care models.1
  • Health care technology
    Health care technology M&A has remained highly active, with strategic acquisitions aimed at unifying financial and clinical data, expanding payments capabilities, and embedding artificial intelligence in physician workflows.2
  • Life sciences and pharma services
    The biotechnology sector remained focused on oncology, rare diseases, and immunology, with deal activity set to accelerate as pharma companies seek to replenish pipelines ahead of looming patent cliffs.3
  • Medical devices and supplies
    The ongoing shift toward home-based health care and heightened emphasis on patient engagement positions the sector for tremendous growth in remote monitoring and wearable medical devices.4
  • Payors and payor services
    The shift toward value-based care is a positive for payors as reimbursement is tied to outcomes rather than services provided, incentivizing providers and payors to lower health care utilization and provide better patient health.5

 

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References

1 Dave Muoio, “Hospital M&A continues to rebound as policy uncertainty clears,” Fierce Healthcare, October 15, 2025.
2 Capstone Partners, Healthcare IT market activity improves across asset classes, September 2025.
3 Dinan Capital Advisors, Healthcare industry report – Q3 2025, October 13, 2025.
4 Vantage Market Research, “Wearable medical devices market poised for USD 499.2 billion by 2035, growing at a CAGR 21.6%,” press release, October 9, 2025.
5 UnitedHealthcare, “The evolution of value-based care and what it means for employers,” April 7, 2025.

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