The coronavirus (COVID-19) has handcuffed almost every industry, causing notable damage to the global economy. Companies across the world have been in dire straits trying to recoup from the crisis. By the same token, the pharma industry has been impacted in its own way. Starting from the increased cost of medicines to disruptive supply chains, things are not in good shape.
You can tune in and listen to our audio on the impact of COVID-19 on the Pharma Industry.
Supply Chain Disruption Leading to Shortage of Drugs
The coronavirus outbreak has caused a major supply chain disruption globally, due to which the pharma industry has been severely impacted. Some of the world’s largest pharma companies, such as Johnson & Johnson, Novartis, and Pfizer, along with smaller and medium-sized manufacturers, have been bearing the brunt of it.
The broken supply chain has caused an inevitable shortage of medicines in the market. The most affected are anesthesia care, emergency care, and pain management drugs. In the course of time, experts have forecasted a major shortage of recently popular pandemic drugs such as Hydroxychloroquine and Chloroquine. Furthermore, drugs ranging from calcium supplements to cancer medications and HIV treatments are predicted to face similar shortages.
Skyrocketing Cost of Medicines
The impact of COVID-19 on the pharma industry has been worrisome, especially due to strict lockdowns in India and China. It has resulted in a significant increase in the cost of raw materials and drugs. As per the FDA’s 2018 report, 31 percent of medical ingredients and 24 percent of medicines were imported from India. On the other hand, China is the world’s leading manufacturer and exporter of active pharmaceutical ingredients (API) by volume.
The cost of generic drugs such as Paracetamol has shot up from INR 250–300 per kilogram to INR 400–450 per kilogram. The cost of vitamins has also witnessed a surge of 40–50%. According to experts, if the coronavirus pandemic prolongs, we are likely to see a significant rise in drug prices at a global level.
Clinical Trials
The coronavirus outbreak has adversely impacted ongoing clinical trials in the global pharma industry. Since 20% of clinical trials are conducted in China, especially in Wuhan, where COVID-19 originated, delays in ongoing trials are inevitable. Patient enrollment has declined, patients have dropped out of running trials, and usual study protocols have been disrupted due to the pandemic.
What Is the U.S. Food & Drug Administration (FDA) Doing to Reduce the Impact of Coronavirus on the Pharma Industry?
- The FDA has issued three Emergency Use Authorizations (EUAs) to accelerate the availability of COVID-19 testing kits.
- It is actively supporting clinical trials for COVID-19 vaccines and reaching out to pharma manufacturers to tackle drug, mask, and glove shortages.
- The FDA is providing feasible solutions to help address supply chain disruptions.
How Is eCommerce Helping the Pharma Industry During the Coronavirus (COVID-19) Crisis?
The coronavirus pandemic has evidently increased the demand for ePharma. According to global reports, traffic for pharma eCommerce has shown considerable growth, along with a positive outlook for conversion rates. Many pharma companies are shifting from brick-and-mortar stores to online stores. Furthermore, the new “contactless delivery at your doorstep” system has opened doors for increased eCommerce sales for the pharmaceutical industry.
Many suppliers have changed their strategies to support online sales by investing in serious digital marketing. The current pandemic situation has forced many B2B pharma companies to shift online so that they can communicate with buyers more easily and foster sales.
From medicine deliveries and medical consultations to other healthcare facilities, solutions available online are helping ease the minds of people during these difficult times. More and more consumers are coming on board and benefiting from the digital space. In the near future, virtual scientific engagement and telemedicine will transform the pharma ecosystem.
However, that doesn’t mean everything is milk and honey in ePharma. Due to the rising number of COVID-19 cases, the supply of medicines has been heavily directed toward coronavirus patients, causing shortages of these drugs for various other treatments.
Another challenge faced by online pharmacies is panic buying. People are stocking up on medicines. In fact, purchases of cough, cold, and common-flu tablets have increased by as much as 198%. Most eCommerce pharma companies are having to make the tough decision of prioritizing essential drugs over others. There has been a 200 percent surge in online search volumes for health products related to coronavirus (COVID-19). As per Adobe, eCommerce sales of hand sanitizers and face masks have skyrocketed by a whopping 800 percent.
The Show Must Go On with the Help of eCommerce
The pharmaceutical industry is an integral part of society, and for keeping it up and running, eCommerce is the solution for times to come. Due to the coronavirus outbreak, the pharma industry is operating mostly from the digital space, and many companies are adopting it after previously following traditional business models based on physical outlets. Pharma retailers are looking for a robust and integrated eCommerce platform that will help them deliver seamless omnichannel experiences across channels.
For building a state-of-the-art, futuristic online store, you can take help from i95Dev. With umpteen years of experience and more than 180 clients, we are one of the oldest and most established companies in the space of building online stores and integrating them with ERPs, marketing tools, and other software.
