The first half of 2025 marks a transformative shift for the pharma, medical, and biotech (PMB) sector in the APAC region. After a relatively muted 2024 characterized by mid-market, smaller transactions, the market is seeing a strong rebound in deal value. By 1H 2025, deal value in APAC jumped 45% year-on-year to US$30 billion, even as volumes slipped 3% to 422 deals.

This surge is part of a global recalibration in PMB dealmaking. Across APAC, EMEA, and the Americas, dealmakers are prioritizing quality over quantity, driving bigger average tickets, more cross-border partnerships, and operational excellence in deal execution.

APAC M&A momentum: Higher value, sharper focus

In Q1 2025, APAC’s PMB sector ranked #4 by volume, recording 196 transactions. By mid-year, the value rebound became clear, driven by a shift away from scattergun mid-market deals to fewer, larger transactions.

• USA leads by value: US buyers doubled their capital deployment, investing US$9.0 billion into APAC PMB.
• China remains the volume anchor: With 138 transactions, China continues to dominate activity despite geopolitical and regulatory challenges.
• Japan emerges as a consistent hub: With 104 deals—the second-highest in the region—Japan is proving to be a critical hub for innovation-focused transactions, even if aggregate deal value remains under US$1.9 billion.

Japan’s performance in Q1 2025 was highlighted by a US$3.8bn buyout by Bain Capital of  Mitsubishi Tanabe Pharma, its largest PMB deal in years. The rest of H1, however, skewed toward smaller, niche acquisitions, highlighting Japan’s growing appeal for strategic buyers seeking innovative assets at smaller ticket sizes.

A closer look at EMEA and Americas PMB M&A

The APAC rebound mirrors trends playing out globally, where capital is being deployed more selectively and strategically:

EMEA: fewer deals, bigger bets

In EMEA, PMB deal volume dropped 13.6% YoY, but aggregate value soared 80% to €50 billion. The surge is fueled by the European Commission’s €10 billion life sciences strategy, which supports bio manufacturing scale-up through 2029. Cross-border capital is pouring in, with a Singaporean sovereign fund participating in landmark a transaction. High-conviction licensing deals and portfolio realignments are also defining the landscape as pharma companies seek to optimize their pipelines.

Americas: Specialization and selectivity

The Americas continue to lead the PMB sector by scale, with US$122 billion in deal value across the first half, even as volumes fell by a steep 33.7%. This shift reflects heightened selectivity, with buyers prioritizing late-stage and commercialized assets in response to the looming patent cliff. Specialty therapeutics, biologics, and precision medicine assets are commanding premium valuations, making the Americas a benchmark for innovation-driven, high-value transactions.

Drivers behind the APAC shift

Several factors explain why APAC is seeing a sharper focus and rising deal values:

• Supply chain diversification: Global pharma and biotech firms are reducing reliance on Chinese manufacturing in response to the US Biosecure Act and geopolitical pressures, driving capex into India, Southeast Asia, and Japan.
• Regulatory momentum: Reforms in Japan and China—streamlined approval processes, better pricing incentives, and pro-innovation policies—are enhancing regional competitiveness.
• Cross-border capital flows: US and Chinese investors dominate, but Southeast Asian sovereign and institutional capital is increasingly shaping the region’s deal landscape.
• Shift to quality over quantity: Investors are willing to deploy larger tickets into fewer, higher-conviction deals, mirroring patterns seen in EMEA and the Americas.

APAC M&A outlook for 2H 2025

Looking ahead, APAC is poised to maintain its momentum:

• US buyers are expected to deepen their investments in high-growth markets and clinical-stage assets.
• Japan’s role is set to expand, with regulatory clarity paving the way for more substantial transactions.
• Southeast Asia will continue to rise as a hub for contract manufacturing and biomanufacturing, drawing cross-border capital.

From a value-light 2024 to a value-heavy HY 2025, the APAC PMB market is maturing rapidly. With larger average tickets, a shift in value leadership toward US buyers, and Japan’s steady ascent, the region is cementing its role in the global PMB ecosystem.