Inside healthcare & pharma in CEE: from strategic transactions to digital health – what’s driving the next wave

Healthcare and pharmaceuticals in CEE are affected by a wide range of economic, political, social, and technological factors. Key drivers include the rise of private healthcare and increased digitalisation. Investment is further fuelled by government commitments to increase spending. In turn, this creates a robust level of M&A activity across diverse countries in the region with a focus on consolidation and strategic investment.

Demographics is a consistent long-term driver. CEE’s rapidly ageing population continues to generate growth in both sectors. According to Erste Group Bank the region is characterised by a notable decrease in the working-age population, a rise in the median age, and some of the world’s lowest fertility rates.

At the same time, the region’s GDP continues to grow at a faster rate than Western Europe. Pointing to new drugs and treatments, as well as the rapid development of medical technology, Velizar Velikov, Head of M&A Database at EMIS says, “These factors have already been seen in Western Europe. Now Eastern Europe is playing a catch-up game.” Helen Rodwell, partner at CMS in the Czech Republic, concurs: “Overall, the healthcare sector in CEE is still under-developed, but people are getting wealthier in the region, so there’s more purchasing power. It’s moving into alignment with Western Europe.” She adds, “We’re also seeing a marked increase in plastic surgery and IVF clinics – a sign that this part of the market is maturing.” Rodwell also notes, “Private health services are particularly dynamic. From essential treatments to more elective procedures, there is considerable room for growth.”

Döne Yalçın, partner at CMS in Türkiye and Austria, says: “Across CEE there is strategic momentum. We have an ageing population, while public and private investment is modernising healthcare with rapid technology adaptation. All of this is helping to reshape both corporate portfolios and service consolidations.”

Health tourism is another key component of growth. For example, Hungary is a leading destination for high-quality dental treatments; Poland is a hub for medical tourism; and the Czech Republic is a favoured destination for IVF, fertility treatments and eye surgery. Driven by high quality, competitive costs, and increased technological advancement, Türkiye is also a fast-growing hub. “Healthcare tourism in Türkiye is significantly increasing, which attracts a great deal of strategic investment,” says Yalçın.

Against this background, the volume of CEE deals last year experienced strong growth with 124 deals compared to 85 deals in 2024. Meanwhile, the aggregate value of these deals rose sharply: by 678% from EUR 777m in 2024 to EUR 6.05bn in 2025. Sustained consolidation is a major factor, as investors build strategic cross-border platforms. Similarly, there is significant interest in innovation with AI-powered diagnostics, predictive analytics and telemedicine boosting investor appetite for acquisitions.

Two prominent deals stood out last year by virtue of their size: the sale of Zentiva, the Czech-based generics producer, previously belonging to Sanofi, by Advent International to GTCR for EUR 4.1bn. Rodwell notes, “The acquisition of Zentiva was the largest deal in the sector in 2025. Zentiva has expanded its product portfolio, notably in generics and OTC products, and has a strong presence in CEE markets, such as Romania, Poland, and Hungary.”

The second large acquisition was Regina Maria, the Romanian private healthcare provider, together with Serbia’s MediGroup, which Finnish healthcare group Mehiläinen (backed by CVC Capital Partners) bought for EUR 1.3bn from the private equity firm MidEuropa. This deal exemplifies the continued role that private equity plays in regional healthcare deals. “It is exactly the type of deal to be expected when financial investors create platforms, then grow them through acquisitions, and later sell them,” says Velikov.

Developing the point, Yalçın notes that, “Many first-generation PE platforms in, for example, diagnostics and outpatient care, are now into their second ownership cycle. This will continue to push both exits and secondary buy-and-build, where PE grows an acquired company by buying smaller companies as add-ons. We see exits for various reasons – sometimes stress in the market, sometimes reorientation by new shareholders. But we also see some movement in demergers and divestments.” 

In terms of trends across the region, Yalçın anticipates more strategic partnerships. “There will be bigger consolidation and greater alignment with partnership interests,” she says. “This is how discussions are going. There will also be more sales of non-core brands, regional OTC portfolios, and specific plans for manufacturing, as global and regional pharma companies keep reallocating capital towards specialty medicines, complex generics, biologics and tech-enabled commercial models.”

Founder-owners of clinics and laboratories will also be more willing sellers to larger operations that can then fund the necessary technology, according to Yalçın. She says, “As companies expand regionally, technology investment will be crucial. Acquisitions of health tech, health technology platforms, and AI-driven diagnostics will remain an M&A hot spot. The better the solution is, the more attractive the assets will be.”

Underpinned by these rapidly-developing technologies, dynamic healthcare and pharma businesses will continue to attract cross-border interest and strategic partnerships – from manufacturing sites, branded generics, and OTC portfolios, to specialty pharma, healthcare services and technology platforms.