[Healthcare] APAC Cross-Border M&A Involving Japanese Companies: Review 2025 and Insight for 2026

In 2025, Japanese companies executed 24 cross‑border M&A transactions in the healthcare sector across the Asia–Pacific region. Activity was widely distributed across pharmaceutical manufacturing and distribution, consumer healthcare, digital health, and adjacent medical‑service platforms. A consistent pattern emerged: Japanese corporates expanded commercial networks in high‑growth ASEAN markets such as Vietnam and the Philippines, while deploying selective, technology‑focused investments in India and Korea to strengthen digital‑health connectivity and R&D capabilities. These movements underscored the sector’s diverse growth vectors and the need for differentiated country‑level strategies.

Vietnam: Acceleration in Pharmaceuticals, OTC, and Consumer Hygiene

Vietnam remained a focal region for Japanese activity, driven by population growth, rising incomes, and surging demand for pharmaceuticals and hygiene‑related consumer goods. Asuka Pharmaceutical Holdings strengthened its presence by acquiring shares in Hataphar, enhancing its distribution capabilities for prescription pharmaceuticals. Lion Corporation advanced its strategy in consumer healthcare by increasing its stake in Merap Lion, reinforcing its portfolio in OTC products and personal‑hygiene categories. These transactions illustrated a broader trend of acquiring established local channels to secure distribution, brand presence, and regulatory‑compliant platforms in a rapidly expanding market.

Philippines: Expansion of Pharmaceutical Sales Capabilities

In the Philippines, Asuka Pharmaceutical Holdings expanded its regional footprint by acquiring shares in the parent company of MedChoice Pharma. The transaction aimed to strengthen product portfolios and secure deeper market access in a fast‑growing pharmaceutical environment. Improvements in healthcare access and broader insurance coverage in the Philippines have elevated the importance of robust sales and distribution infrastructures, making acquisitions in this domain strategically attractive for Japanese players.

India: Targeted Investments in Digital Health and Wellness

India continued to attract minority investments from Japanese corporates seeking exposure to high‑growth digital‑health ecosystems. Elecom invested in Phasorz Technologies, the operator of the “MediBuddy” digital‑health platform, gaining access to telemedicine, wellness management, and online healthcare services. India’s rapid adoption of telehealth solutions and the increasing integration of healthcare with insurance and employee‑benefit platforms have made small, option‑value‑oriented equity placements a preferred approach for Japanese investors seeking early positioning.

South Korea: R&D‑Driven Investments and Biopharmaceutical Collaboration

Korea remained a centre of advanced pharmaceutical R&D and formulation technologies. RaQualia Pharma participated in a funding round led by HK inno.N to deepen collaborative development and complement its existing drug‑discovery pipelines. Korea’s strength in biologics and formulation science has made it a strategic destination for Japanese firms seeking to enhance R&D productivity while spreading development risk through capital partnerships rather than full acquisitions.

Notable Transactions in 2025

Asuka Pharmaceutical Holdings (Vietnam & Philippines): Acquired Hataphar and parent of MedChoice Pharma, strengthening ASEAN pharmaceutical distribution.
Lion Corporation (Vietnam): Increased its stake in Merap Lion, reinforcing OTC and hygiene‑product presence.
Elecom (India): Invested in Phasorz Technologies (“MediBuddy”), gaining exposure to digital health and telemedicine.
RaQualia Pharma (Korea): Participated in HK inno.N’s funding round, complementing drug‑development capabilities.

Structural Insights from 2025: Themes Shaping APAC Healthcare M&A

Four structural themes defined the healthcare M&A landscape involving Japanese corporates.

First, ASEAN markets saw pronounced consolidation across “pharmaceutical distribution × OTC × household hygiene.” Acquisitions centred on absorbing local distribution and commercial networks, reflecting the strategic importance of ground‑level market access.

Second, India’s growth vector is increasingly tied to the convergence of digital health and insurance. Telemedicine, wellness applications, and integrated care models continued to attract minority investments aimed at securing future optionality.

Third, Korea remained a destination for R&D‑driven partnerships. Japanese companies prioritised complementary technologies in drug formulation, discovery, and biopharmaceutical development, emphasising collaborative capital investments rather than large‑scale acquisitions.

Fourth, investment objectives increasingly diverged by market maturity: ASEAN served as a growth‑capture market, Korea as an R&D‑complement market, and India as a future‑option and digital‑health exposure market. This differentiation became clearer in 2025 as companies aligned investments with distinct strategic outcomes.

Healthcare‑Specific Valuation and Macro Considerations

Macroeconomic and regulatory factors played a decisive role in valuation throughout 2025.

Healthcare expenditure increased across APAC, particularly in Vietnam and the Philippines, where rising income and improved access to pharmaceuticals supported robust demand. In OTC and hygiene‑related categories, demographic expansion and consumption upgrading reinforced stable growth trajectories, elevating the value attributed to resilient demand profiles.

Regulation remained a heavy influence on valuations. Pharmaceutical distribution licences, product approvals, and compliance structures materially affected investment feasibility, making the acquisition of already‑approved and locally entrenched companies particularly attractive.

Digital‑health transactions saw greater emphasis on user‑data quality, integration capabilities, and API connectivity. For early‑stage platforms, valuation was driven more by data assets, engagement metrics, and interoperability potential than by current revenue scales.

R&D partnerships increased in prominence due to rising development costs and the risk inherent in early‑stage pipelines. Japanese pharmaceutical firms increasingly pursued selective capital participation in Korean and Taiwanese biotech ecosystems to diversify risk and accelerate development timetables.

Across these themes, regulatory clarity, distribution‑network strength, technological complementarity, and data accessibility emerged as the core valuation anchors in healthcare M&A.

Syntax Partners, Inc.