- 2025 set a record for pharma services transaction value, yet deal volumes declined 11% CAGR from 2023
- Three mega-deals accounted for more than half the year’s total value
According to Bain & Company’s 2026 Global Healthcare Private Equity Report, 2025 was the largest year on record for pharma services deal value, yet transaction volumes declined 11% CAGR from their 2023 peak.
Pharma Services Buyout Activity 2020-2025
Source: Bain & Company Global Healthcare Private Equity Report 2026
Just three mega-deals accounted for more than half of 2025’s total transaction value:
- Bain Capital, Kohlberg, Mubadala, and Partners Group’s acquisition of PCI Pharma Services represented more than one-third of the year’s entire deal value
- THL Partners acquired Headlands Research from KKR
- BayPine acquired CenExel Clinical Research from Webster Equity Partners
Three investment strategies shaping the market:
According to Bain’s analysis, PE investors are adapting their approach in several ways:
1. The barbell strategy: Investors are targeting both premium assets with proven scale and clear differentiation, alongside under-optimized platforms where operational improvements can unlock growth.
2. Flight to stability: In a reversal of late-2010s trends, investors now prioritize companies with large pharma customer exposure rather than early-stage biotech. They’re also favoring strong revenue visibility from long-duration programs, US-based infrastructure with limited policy exposure, and carve-outs where operational improvements are achievable.
3. Disciplined value creation: Leading investors are developing structured playbooks with scenario planning to test risk limits, focusing on AI-driven operational efficiency and strategic M&A opportunities.
The concentration of capital into fewer, larger transactions signals that the supplier landscape is consolidating toward scale players. CDMOs that can attract premium investment will have capital for capacity expansion and technology upgrades. Those that can’t may face constraints.
Read the full Bain & Company analysis
Source: Bain & Company Global Healthcare Private Equity Report 2026
