• Sector’s defensive nature attracts investors amid market volatility
• Follow-ons to drive healthcare ECM volumes, with Haleon and Galderma stake sales expected

Healthcare ECM volumes in EMEA reached their highest levels in a decade last year, with the IPO of Galderma Group AG [SIX:GALD] and subsequent stake sales in the firm, along with selldowns in Haleon [LON:HLN], lifting deal volumes to USD 23.1bn in 2024, according to Dealogic data.

Issuance in 2025 has got off to a strong start, which could spark hope of an even healthier year.

Healthcare deal issuance has outpaced other sectors as investors seek refuge in defensive industries amid heightened market volatility. With geopolitical tensions, inflation concerns and interest-rate uncertainty keeping investors on edge, healthcare’s stable revenue streams and defensive nature make it a preferred play.

Healthcare volumes this year have continued on a strong trajectory, with volumes reaching USD 5.9bn so far in 2025 YTD. That figure is likely to climb further with the blockbuster IPO of Stada Arzneimittel AG, the German large-cap pharmaceutical group, expected this year, as reported by this newswire last year.

While IPOs remain relatively scarce due to lingering market uncertainty, follow-on offerings are set to drive the bulk of healthcare ECM volumes. Further stake sales in Haleon – a 60-day lock-up expires on 18 March 2025 – and Galderma – a 90-day lock-up expired on 19 February 2025 – alongside other anticipated transactions, are expected to provide a steady pipeline of deals. Last year, follow-ons accounted for USD 18.2bn of the total ECM volumes.

Meanwhile, as the convertible bonds market shows signs of life, it’s likely healthcare volumes will receive a boost this year. This follows a relatively active year in 2024 for healthcare CB issuers, mainly driven by QIAGEN N.V. [NYSE:QGEN], a German-founded multinational provider of sample and assay technologies, which tapped the market for EUR 452.53m (USD 500m).

Top Five largest Healthcare ECM transactions since 2014

With a robust pipeline of block trades, potential IPOs and a recovering CB market, healthcare ECM is shaping up for another strong year.

Whether this year’s volumes can hit the heights of last year is yet to be seen, but the strong start and pipeline means that investors won’t be checking out of this sector any time soon.