DECEMBER 20249INDIAN PHARMACEUTICAL SECTOR GEARING TOWARDS INNOVATIVE THERAPIESINDIA & EU FINALISE GREEN HYDROGEN INFRASTRUCTURE EXECUTION PLANThe pharmaceutical sector is poised for a positive trajectory over the next three years, with a healthy pipeline of innovative products expected in areas such as biosimilars, GLP-1, and peptides. These therapies are pivotal in treating conditions like diabetes and other chronic illnesses. Companies with a stronger focus on chronic portfolios continue to outperform the broader market, reinforcing their long-term growth potential.India and the European Union (EU) have finalised an extensive roadmap for the green hydrogen sector that includes development of infrastructure, technology cooperation and boosting supply chains. The two sides deliberated on ways to enhance cooperation in the sector at the 10th meeting of the India-EU Energy Panel held on Thursday in Brussels.Meanwhile, the healthcare sector demonstrated an impressive 17.6 percent YoY growth in top-line revenue for Q2FY25, with a QoQ increase of 10.4 percent. Improved hospital occupancy rates, which rose by 340 basis points (bps) YoY and 470 bps QoQ, played a significant role in this growth. Major pharmaceutical companies in India recorded a robust 10 percent year-on-year (YoY) growth in the second quarter of FY25, fueled by strong performances in both North America and the domestic market, according to a report by Axis Securities. The Indian Pharmaceutical Market (IPM) also grew by 8 percent YoY, driven by a 9 percent increase in chronic therapies, while acute therapies saw more subdued growth of 4 percent, attributed to a weak season for these segments. Despite this, insurance penetration in the healthcare sector remains low, presenting substantial opportunities for future growth as health insurance awareness and purchasing power rise. Combined with increasing occupancy rates and Average Revenue Per Occupied Bed (ARPOB), these trends are expected to sustain the momentum of growth in the healthcare industry. The report signals a promising outlook for both the pharmaceutical and healthcare sectors, supported by innovation, expanding insurance coverage, and rising demand for specialized therapies. At the meeting, a "work plan" was adopted for the third phase of the India-EU Clean Energy and Climate Partnership 2025-28, which will focus on deeper cooperation in five priority areas, according to the Ministry of External Affairs (MEA).The priority areas are green hydrogen, offshore wind energy, regional connectivity, electricity market integration and smart grids, energy efficiency, and energy and climate diplomacy."The two sides have set out an extensive agenda for green hydrogen cooperation, which includes assessing infrastructure development feasibility, regulatory and technology cooperation, and strengthening of supply chains," the MEA said on Saturday.It said the energy panel focused on the energy transition priorities of the two sides and took stock of the achievements of the second phase of the India-EU Clean Energy and Climate Partnership 2021-2024."The two sides have also charted out the framework for green hydrogen cooperation, which includes cooperation on green hydrogen policies of India and the EU," the MEA said.The EU and EU member states participated in the international conference on green hydrogen this year in India.
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