Significant Impact of COVID-19 on Dermal Fillers | Healthcare Industry
COVID-19 Impact on Dermal Fillers in Healthcare Industry In the city of Wuhan, China the coronavirus disease (COVID-19) outbreak was first experienced after that, coronavirus disease (COVID-19) has expeditiously spread across the globe, with a large number of cases having been reported worldwide. The coronavirus disease (COVID-19) pandemic is not only creating a health crisis but also affecting healthcare, economies, and the pharmaceutical sector as well as at their core. As COVID-19 is an infectious disease, its spread is endless; moreover, there is no specific and approved treatment for the coronavirus disease (COVID-19) on the other hand global dermal filler manufacturing companies are finding it difficult to manufacture and distribute products across borders due to lockdown, disrupted supply chains, and social distancing restrictions. Coronavirus pandemic has hit the healthcare systems across the globe due to high debt levels and already weak economies of the region. The implications of COVID-19 have considerable influence on the dermal fillers market are now it is starting to be felt. Various factors have an indirect influence on the decline of the dermal filler market as frontline healthcare professionals are involved in essential procedures and containment of COVID-19 spread. Moreover, flight cancellations, travel bans, mass quarantine along with growing panic among the population, and uncertainty about the future are some of the other factors involved. PRICE IMPACT Due to the pandemic, there is a delay associated with various types of limitations faced by the manufacturers to fulfill the end product order. However, according to the primary respondent from Gladerma Laboratories LLC, the company did not stop the manufacturing of the Restylane although the demand was normal during the pandemic. Also, due to the coronavirus disease (COVID-19) pandemic outbreak, manufacturers are forced to find new contract manufacturers and suppliers to move manufacturing activities to different or new facilities locations that are less impacted by the outbreak. The average cost of dermal filler is USD 652/per injection in 2019 which was decreased during COVID-19 due to a decrease in demand. IMPACT ON DEMAND In compliance with the recommendations of the Centers for Disease Control, the American College of Surgeons, the Brazilian Society of Plastic Surgery, and the American Society of Plastic Surgeons recommended postponing or canceling elective surgery. The goal of this recommendation is two-fold: first to minimize patient and visitor traffic in healthcare settings to reduce transmission between patients and healthcare workers and secondly, to preserve essential resources, especially hospital beds, critical care and ventilator supplies, and PPE critical to the safety of patients and healthcare professionals. · U.S.-based dermatologist told in an interview that before COVID they daily perform 10-20 procedures of fillers. However during COVID, they suggested their client delay the procedure before they get vaccinated and or after 1 month of being vaccinated. This also decreases the demand to some extent · According to American Academy of Facial Plastic and Reconstructive Surgery's (AAFPRS) while demand for facial plastic surgery procedures increased, the AAFPRS found that the demand for dermal filler decreased for the first time in years · There are several theories that denote the decrease in demand such as the use of mask have due to which faces are covered which delayed the demand of dermal filler procedures. · Some plastic surgeons saw a decrease in demand due to the shift of procedure as the dermal filler is temporary and stays for 3 to 4 years. However, plastic surgeries are permanent which decreases the demand for the product. This instance clearly indicated the negative impact on the demand of dermal filler product. However, Allergen Product Juvederm which is now the product of Abbvie got approval in 2019 and during the Revenue 2020 showed that the overall sale of Juvederm is USD 718 Million which is fragmented into USD 318 million of the U.S. and USD 400 million International. The above instance showed that the product demand decreased due to lockdown and fewer patient visits in the hospital or clinics. IMPACT ON SUPPLY The COVID-19 pandemic has transformed many organizations’ business environments. Supply availability has been hampered by a number of issues, including export and travel restrictions by some producing countries, and lockdowns that have forced suppliers to (temporarily) shut down. To minimize supply chain crises, healthcare organizations have been firmly monitoring the supply chain with the assumption that the COVID-19 outbreak may adversely impact on the supply chain of medical devices, including shortages of aesthetic & cosmetic surgery devices or potential disruptions in its supply chains. · Revance which is a U.S.-based manufacture of dermal fillers announced that they didn’t find an issue with the supply chain as they have their manufacturing plant in the U.S. only · However, the agreement with Teoxane SA for the production of RHA 2, 3, 4 has delayed the commercialization and supply of this product in the market. The company in the initial quarters of 2020 has stopped the manufacturing of RHA due to COVID-19 and deficiency of raw material STRATEGIC DECISIONS BY MANUFACTURERS A large pool of the population affected by this COVID-19 virus and its spread been expanding across the world for the last few months. In order to deal with the COVID-19 outbreak challenges, many dermal filler market players are creating new strategies. Also, to tackles the pandemic situation and increase the company revenue and growth, the company now opting for digital media such as telecommunication, mobile applications, webinars, and other digital media to support the patient requirement. Moreover, to accomplish the market demand, small market players utilize the partnership agreement strategy. It is predicted that these strategies are anticipated to escalate up the company revenue and its growth in the forecasted period. For instance, · In May 2020, AbbVie Inc. has completed its acquisition of Allergan. This acquisition has helped AbbVie Inc. to increase its market and demand for its product in the future as the acquisition has combined the product portfolio of the companies thereby strengthening their business · In October 2020, AbbVie Inc. has announced that it has entered into an agreement with Luminera. It is predicted that this agreement is anticipated to strengthen the company’s footprints in the aesthetic business sector · Revance has mentioned about the 3 clinical trial approved b FDA in March 2020 which belongs to aesthetic category. These will bring more dermal filler to the market CONCLUSION The dermal filler market size experienced a decline in 2020 due to increased restrictions imposed by various governments leading to the closing of non-emergent healthcare facilities including procedures such as aesthetic & cosmetic surgery devices and augmentation among more. The mass quarantined imposed by the government put stop to transportation, international travels, medical visa which is an important part of Thailand healthcare revenue and the dermal filler clinics have mentioned during primary research that the patient number has decreased due to covid-19 restrictions. The market player has experienced decreasing levels of customer demand for its products beginning in the second half of its first quarter of 2020. It can be concluded that the COVID 19 pandemic situation has an adverse impact on the global dermal filler market affecting the price, supply, and demand of the fillers. However, in the crisis call, market players, government bodies, and healthcare organizations work closely with healthcare professionals, customers, and patients for the betterment of public health.