Dutch M&A Trends in Pharma & Life Sciences and Healthcare

The Dutch Healthcare industry has seen increased mid-market M&A activity over the past few years. Sub-sectors like dental care, ophthalmology, animal care, and childcare are consolidating to capitalise on economies of scale, boost operational efficiency, and enhance service offerings.  

Several factors are driving this trend. The persistent shortage of healthcare professionals is compelling providers to adopt digital solutions for optimising operations and delivering cost-effective, high-quality care. Additionally, rising costs related to inflation, coupled with stagnant government funding, incentivise healthcare providers to explore innovative methods for improving efficiency and reducing costs.  

Consequently, healthcare providers are likely to prioritise the acquisition of telehealth, healthtech, medtech and digital assets, especially those incorporating AI-enabled services. This strategy enables them to improve efficiencies in care delivery, whilst embracing digital health solutions will be vital for improving patient outcomes and maintaining a competitive edge in an evolving healthcare landscape. Moreover, it facilitates cost-effective, value-based care models while mitigating the impact of rising labour costs.

However, challenges remain. Legislative headwinds, funding cuts, below-expected yields, and ongoing discussions surrounding private equity involvement in healthcare provision may impact valuations and investment decisions. This is true across clinics, medical service centres and group practices in various geographies, including the Netherlands.

The Pharma & Life Sciences (PLS) sector witnessed a notable transaction in December 2024 with Goldman Sachs Asset Management acquiring a majority stake in Dutch pharmaceutical company Synthon from BC Partners. While smaller deals and alternative collaborations are expected to characterise the broader M&A landscape, the sector remains poised for continued growth.

The biotech sector, particularly attractive for midsize companies with strong revenue potential, especially those with drugs in Phase 3 trials, will continue its growth trajectory in 2025. Oncology remains a key therapeutic area, with innovative cancer treatments driving strategic acquisitions. The trend of expanding capabilities in oncology and gene therapy, prominent in 2024, will persist through partnerships and acquisitions that bolster technological expertise and therapeutic offerings. For instance, Cradle, a Dutch AI platform provider, secured nearly seventy million euro late last year to support biologists in designing improved proteins and accelerating R&D through generative AI.

Despite a cautious investment climate, large pharmaceutical companies will seek to expand their portfolios and unlock new revenue streams. This pursuit will result in a promising M&A landscape characterised by larger deals and collaborative endeavours such as joint ventures. Loss of exclusivity will drive large-cap pharma companies to target innovative late-stage biotech firms, focusing on specific therapeutic areas and enhancing their innovation pipelines. The acquisition of Ceban Pharmaceuticals by Medios AG serves as an example of the ongoing trend towards European expansion, portfolio diversification, and achieving synergies within the specialty pharma sector. 

Dutch companies will also navigate disruptions in global supply chains due to tariffs and policies promoting the repatriation of drug manufacturing. This will further stimulate M&A activity, particularly efforts to onshore manufacturing or establish international partnerships. Adaptability will be key for maintaining competitiveness and ensuring a stable supply of essential products.  

An anticipated decline in global interest rates could lead to IPOs and capital raising for M&A activities within the PLS sector. This influx of capital will enable companies to access innovative R&D resources and support growth initiatives, positioning them favourably for future success.

Lastly, joint ventures, licensing agreements, and collaborative models are gaining traction as companies seek to share risks and rewards while accelerating the development and commercialisation of new products.  

With declining interest rates and improving economic conditions, private equity (PE) is expected to bolster its influence in PLS and healthcare sectors. PE firms have played a key role in consolidating fragmented submarkets, including independent treatment centres (ZBCs), dental care, ophthalmology, and animal care. For instance, IVC Evidensia, a UK veterinary services provider owned by EQT, acquired several Dutch veterinary businesses last year. This trend highlights PE's focus on scaling up these sectors. Additionally, their investments in health tech and digital assets demonstrate the transformative potential of these innovations in healthcare delivery.

Furthermore, early-stage venture capital firms such as Forbion, EQT Life Sciences, Gilde Healthcare and BioGeneration Ventures will continue to drive investment and innovation within the early stages of the PLS sector.

The M&A landscape in the Dutch Pharma & Life Sciences and Healthcare sectors is poised for a dynamic 2025. Consolidation, digital innovation, and strategic partnerships will be key drivers. Companies that effectively leverage these trends will be well-positioned to thrive in this evolving market.