COVID-19 Impact on Diabetes Treatment Market in Pharmaceutical Industry
The COVID-19 has posed a complex challenge in front of different healthcare market players, which has badly impacted the worldwide market. The COVID-19 disease caused by the SARS-CoV-2 virus is a newly discovered infectious disease, and it has been reported that along with respiratory organs it also affects the other organs such as kidney, heart, digestive tract, blood and nervous system.
This has been reported that the older people and people having pre-existing medical conditions such as diabetes, asthma among others are more vulnerable to prevailing COVID-19. If people having diabetes develop COVID-19 infection, it becomes harder to treat the fluctuating blood glucose levels and hence it becomes difficult to treat the diabetes complications. As the diabetic patients have weak immune system, those people are generally took longer recovery period. Moreover, the environment of elevated blood glucose levels provides and ambient condition for the survival of coronavirus for a longer period of time.
The prevailing COVID-19 has resulted in lockdown in order to prevent the uninfected people from those of infected one; this lockdown has created a stressful mind among the people having chronic disease such as diabetes related to medicines and diagnostic tools. The COVID-19 is likely to infect people having diabetes with 50% higher risk as compared to those who do not having diabetes. Thus, it is very much important for diabetic patients to maintain accurate blood glucose level and also to strengthen the immune system to stay protected from getting infected from the virus.
FIGURE: 1 TOP MOST DIABETES PREVAILING COUNTRIES (2019)
the prevalence of diabetes is increasing worldwide it has become important to provide patients with proper medicines and accurate diagnostic tools during the prevailing pandemic of COVID-19, this is the reason why pharmaceutical companies and government are taking several steps in order to deal with cumbersome condition.
As no such treatment has been discovered yet for coronavirus, the fear of getting infection led the people to remain safe at their home, as a result of which various businesses around the world is suffering a lot involving pharmaceutical companies among others.
As India relies on China for 70% of drug intermediates and bulk drugs, COVID-19 is expected to hike the price of the medicines used for diabetes treatment.
· India relies on China for Metformin Hydrochloride which is used to control the high blood sugar level in patients having type II-diabetes. According to a report it has been suggested that the stock of Metformin Hydrochloride lasted for March 2020, and now India is facing scarce of this ingredient, this is likely to hike the price of diabetes treatment medicines.
· As per the new report published by CBS news stated that Medtronic, headquarter in Dublin, Ireland is a medical technology company, the company depends on import of some raw materials from others regions of world for manufacturing of insulin pumps and others products, but as a result of lockdown and ban across the borders, the company is likely to suffer from shortage of raw material that will pose a direct impact on manufacturing and hence led to price increase of insulin pumps.
· This has been reported that makers of electronic drug delivery systems in India rely on China for several electronic components. Almost all electronic makers are increasing prices by 3-5% due to shortage of imports and export activities which ultimately led to shortage of parts. As electronic components are used for the manufacturing of insulin pumps the increasing prices of electronic component led to hike in price of insulin pumps.
This thus signifies that due to COVID-19 pandemic the price of insulin pumps and the medicines used for diabetes treatment will increase across the globe.
IMPACT OF COVID-19 ON DEMAND
The coronavirus has affected the various regions of the world and caused widespread closure of market players and local manufacturing plants. This lockdown and isolation has adversely impacted the global economic activity.
COVID-19 is expected to be an opportunity for diabetes treatment market, as the patients having diabetes are at the higher risk of getting COVID-19 infection.
THE IMPACT OF COVID-19 INFECTION ON DIABETIC PATIENTS
Diabetic patients have impaired immune systems and are prone to infectious agents as they have lost the ability to fight against pathogenic organisms.
Moreover diabetic patients have poor glycemic control which also led to increasing chances of viral infection.
Most of the diabetic patients are founded to be obese and obese people are also at a higher risk of COVID-19 infection due to less metabolism activity which even led to the weak immune system.
Diabetes is treated with angiotensin converting enzymes inhibitors and this has been discovered that coronavirus binds to the target cells through this enzyme, an enzyme expressed in the blood vessels and lungs. As an increasing level of ACE2 enzyme founded in diabetic patients, the chances of COVID-19 also increases in such patients.
As the diabetic patients are more prone to COVID-19 infection, they usually look for proper glycemic control. In order to control diabetes, a diabetic patient usually relies on advanced medicines and insulin pumps.
Along with this the market players engaged in the manufacturing of diabetes management tools that are continually making profit even, during the prevalence of COVID-19.
· In a post of May 2020, Tandem Diabetes Care, Inc, the San Diego- based company maker of electronic insulin pumps among other diabetes management devices commented that the company is still making profit due to positive customer feedback on its products such as slim X2 with Control-IQ technology (electronic insulin pump).
This suggests that increasing prevalence of COVID-19 poses a life threating challenges to diabetic patients and hence enhances the demand of diabetes treatment solution. This thus signifies that COVID- 19 is accelerating the demand of diabetes treatment market.
IMPACT ON SUPPLY
Due to pertinacious COVID-19 lockdown, sanctions have been imposed by the governments of various countries. These restrictions and barriers across countries borders led to a decrease in supply of APIs (active pharmaceutical ingredients) needed for drug manufacturing and raw materials required for manufacturing of devices including insulin pumps.
China is considered to be the manufacturing hub of most of the electronic raw materials and India among other countries is heavily dependent on China for electronic raw materials needed for manufacturing of insulin pumps.
Moreover, India procures 70% of APIs (active pharmaceutical ingredients) included Metformin, a diabetes treatment medicine from China, but due to continuous barrier the country is unable to achieve delivery of such products at correct time and in proper amount.
As per the report published on March, 2020 stated that India is suffering from shortage of insulin and other refrigerated medicines due to COVID-19 impact. In India most of the diabetic patients relies on three to four million of insulin shots in each month and these insulin have to keep in cold temperature zones. While the COVID-19 lockdown a shortage of refrigerated vans have been reported that posed a problem for supply of refrigerated insulin to many parts of India.
This signifies that due to continuous lockdown and several restrictions by government authorities the market players and patients are facing disruption of supply chain for raw materials.
STRATEGIC DECISIONS of MANUFACTURERS
Collaboration, agreements, strategic initiatives by market players such as Medtronic, Novo Nordisk India Pvt Ltd, among others in the diabetes treatment market and will help them to expand their product portfolio and to provide with appropriate solutions to physicians and patients. This in turn will lead to increasing product sales and hence will put a positive impact on overall company’s revenue.
Diabetes drug and device manufacturing companies are taking so many strategic decisions in order to cope up with the current scenario of COVID-19. The market players engaged in the manufacturing of diabetes treatment are collaborating so as to accelerate the development of medicines and devices.
The market players have already taken several kinds of strategic initiatives in order to cope up with the corona virus situation.
· In July 2020, Tandem Diabetes Care, Inc. signed a collaborative agreement with one of the med- tech company, Medtronic. The agreement signed by these two companies reflects patent cross-license agreement for t: slimX2 insulin pump manufactured by Tandem Diabetes Care, Inc. and MiniMed 670G insulin pump manufactured by Medtronic.
· In June 2020, Medtronic received an award of USD 337 million for enhancing the research and development for diabetes treatment products. This award has helped the company to boost up in research activities so as to develop an innovative insulin management solution amid the novel COVID-19 prevalence.
· In April 2020, Medtronic, a company engaged in manufacturing of insulin pumps done a rapid expansion of its distribution and production facilities in order to provide the proper diabetic solutions across the world. Moreover, the company’s employees are working every day in order to fulfill the company’s mission to restore health and alleviate life.
· In March 2020, Tandem Diabetes Care, Inc. posted that as restriction were imposed by the California’s governor at the company’s headquarter in San Diego, most of the team workers are working remotely so that the company can maintain the supply chain of their product to their customers worldwide.
With the increasing demand and increasing sales of diabetes treatment medicines and devices, are fueling the growth of diabetes treatment market.
Thus, the market players operating in the diabetes treatment market are adopting several strategies, including collaboration, agreements, market expansion to enhance their business. These strategic decisions by the market players are expected to provide significant opportunities for the market players operating in the diabetes treatment market.
As the pandemic of COVID-19 has resulted in several restrictions throughout the borders but still manufacturers of diabetes medicines and devices are able to manage their stocks. Various manufacturers have allowed their manufacturers to work remotely for manufacturing of insulin pumps and medicines at various manufacturing facilities across safe regions of world helping them to maintain continuous supply chain. Moreover, by raising price of diabetes treatment the market players are gaining extra profit which is helping them to combat the negative effect on overall revenue.