October-November 2025 saw healthcare investment dramatically shift,with US$55 billion in global dealmaking during October alone-a clear signal that investors are prioritizing lasting growth over speculative bets.
While global mega-deals dominated headlines, India’s healthcare funding, totaling US$97.6 million, revealed a distinct preference for late-stage companies, with nearly 77% of capital flowing into these more established businesses. This divergence highlights a broader trend: a move toward disciplined capital allocation in the healthcare sector.
Global healthcare M&A: Platform Thinking takes Over
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The largest global transactions weren’t about quick wins; they were about building lasting dominance.
Novartis’s approximately US$12 billion acquisition of Avidity Biosciences wasn’t simply about a single drug. It was a strategic bet on RNA therapeutics, securing a foundational technology applicable across numerous diseases. Similarly, Novo Nordisk’s US$5.2 billion purchase of Akero Therapeutics bolstered its position in NASH (nonalcoholic steatohepatitis),a significant unmet medical need.
These deals weren’t evaluated just on potential, but on its ability to scale responsibly and deliver consistent returns.
Narayana health’s UK Acquisition: Exporting Execution,Not Just Capital
The most notable Indian transaction was narayana Health’s ₹2,200 crore acquisition of Practice Plus Group hospitals in the UK.
This move isn’t merely geographic expansion; it’s a strategic repositioning. Practice Plus Group operates surgical and diagnostic centers that handle NHS overflow, delivering high-volume, standardized procedures under strict cost and governance controls. This aligns perfectly with Narayana Health’s core strength: process-driven, high-throughput surgical delivery.
Three key drivers underpin this deal. First, revenue visibility through long-term NHS contracts. Second, operational leverage, as Narayana’s systems for surgery, staffing, and procurement are readily transferable. third, strategic credibility, elevating Narayana from a domestic player to a global healthcare operator. This isn’t a defensive maneuver; it’s a demonstration that Indian hospital chains can compete internationally through disciplined execution.
Ophthalmology and the Rise of Speciality Platforms
While Narayana Health signals global ambition, Verlinvest’s US$75 million investment in The Eye Foundation underscores domestic consolidation.
Ophthalmology has become a highly investable healthcare sector in India due to structural factors: high SOP maturity, predictable procedure volumes, and strong margins driven by cataract, LASIK, and retina services. The Eye Foundation’s appeal lies in its repeatability-a scalable, mid-premium model across cities, supported by brand recognition and consistent operations.
This investment signals further consolidation. Smaller centers will likely seek affiliation, mergers, or specialization, mirroring the trajectory of dental chains five to seven years ago-rapid expansion, technology-enabled workflows, and increasing brand dominance.
What the Capital Is Really saying
The message from investors is consistent across global and indian markets.
Healthcare capital is no longer solely chasing growth. It’s backing businesses that can deliver scale with control, expansion with discipline, and ambition with accountability. Platforms, specialty networks, and execution-focused operators are attracting investment. For founders and operators, this means demonstrating throughput, margin stability, and robust governance is now essential.
conclusion
Late 2025 marks a turning point in healthcare investing. Globally, capital is consolidating around platforms promising long-term leadership.In India, investors are rewarding specialty care networks and hospital operators that have proven their ability to scale efficiently.
the Narayana Health-Practice Plus Group acquisition and the Verlinvest-Eye foundation investment aren’t isolated incidents. They are early indicators of a healthcare sector entering a new phase-one defined by execution, consolidation, and international competitiveness. The era of disciplined healthcare capital has begun.
