COVID-19 Impact on Atopic Dermatitis in Healthcare Industry

The effects of COVID-19 depend on the different types of products and services provided by the company. Mainly COVID-19 affect the economy by three different ways: by affecting the demand of product/services, affecting the price, affecting the supply chain. Demand of various healthcare or pharmaceutical product has increased in the pandemic situation of COVID-19 due to increase in awareness regarding the healthcare.

PRICE IMPACT
There is increase in the demand of products which are used for the treatment of various skin disorders such as Atopic Dermatitis (eczema) due to increase in the consciousness of peoples regarding the skin care. Fear of COVID-19 infection is also a major factor that affects the demand of products.
The price of Atopic Dermatitis treatment products has increased due to great effect of COVID-19 on the supply chain of products and other factor responsible for the increase in price is the demand of product.
For instance,
• Dupixent is a product of Sanofi Company which is used for the treatment of atopic dermatitis. There is great effect of COVID-19 on the price of dupixent. The price of Dupixent (200mg/1.14ml) in last financial year was 3,110.09 USD but now the current price is around 3256 USD.
• Due to spread of COVID-19 the cost of treatment of Atopic Dermatitis has increased. Now a day’s people have to pay around USD 3,302 per year for the treatment of mild Atopic Dermatitis. Patient with severe atopic dermatitis using more advanced therapies costs USD 4463 per year.

IMPACT OF DEMAND
Due to spread of COVID-19, there is lockdown in the world which leads to the closure of manufacturing plants and distribution channels in all over the world which badly affects the global economy and also affects the demand and supply of many products. Indirectly the demand of end users or customer increased. It is a great opportunity for many companies such as Pfizer, Mylan, LEO PHARMA, Novartis, and Sanofi which are market leader of atopic dermatitis.

chart shows that there is increase in prevalence in 2020 as compare to the no of prevalence in last year 2019. This shows that demand of atopic Dermatitis treatment product increases as compared to last year.
For instance,
• Dupixent is a leading product which is used for the treatment of Atopic Dermatitis. This is the leading product of the Sanofi company. The net sales of dupixent on Q1 of 2020 is 776 million. The sale of dupixent in 2nd and 3rd quarter is 858 and 918 million vice versa. This shows that there is increase in sale of dupixent form last three quarters of this financial year. This shows that the demand of dupixent was increased from the last two quarters of this financial year.

IMPACT ON SUPPLY CHAIN
Due to spread of COVID-19 all transportation facilities such as air freight ban across the globe have direct impact on the supply chain. As we all know that COVID-19 Spread began in China and China is a world supplier of raw material for the production of many pharmaceutical products. This ban in transportation lead to shortage of raw material and this shortage have direct impact on the demand and supply of many pharmaceutical products such as products used for the treatment of atopic dermatitis.
COVID-19 was emerged in last December 2019, it spread very quickly in other countries such as Asia, Europe and North America. After that on 11 March 2020 it was declared a pandemic by the World Health Organization. After the declaring it as a pandemic, there are lots of restrictions are applied on cross border transportation and lockdown is also implemented. This lockdown and restriction on cross border transportation have great impact on the supply chain of raw material or other goods.
It is also a great opportunity for many domestic companies for increasing the sale of their products and also some companies continuous supply of atopic dermatitis treatment products and become leader in market.
The processing and logistics operations have been halted due to the outbreak of COVID-19 stick lockout. It also determines the market for different goods and their availability. An action plan to counter pandemic-based threats to address the need for food crops, ingredients, medication, PPE, and other important products has been proposed.

STRATEGIC DECISIONS
There are many decisions taken by the leading market players for increasing the revenue of the company and also for increasing the share in the atopic dermatitis treatment market. Pfizer and Anacor merge and take a strategic decision to boost the companies’ pipeline candidates in the atopic dermatitis market.
For instance,
• In the merger of Pfizer and Anacor, Pfizer launched its own product Xeljanz which is used for the treatment of both mild to moderate atopic dermatitis. After this merger the marketing power is boosted for the sale of this product.
• Completion of Phase 3, 12 week pivotal study. In this study there is successful use of abrocitinib for treatment of atopic dermatitis in patients aged 12. This study shows that two different dose of abrocitinib (200mg and 100 mg) were well tolerated.
• There is complete acquisition of Bayer’s prescription dermatology business by LEO Pharma which is leading company in the atopic dermatitis treatment market.
There is an increase in the demand of products used for treatment of atopic dermatitis. These leading companies are taking strategic decision for increasing the sale and market share in the market.

CONCLUSION
As the result of COVID-19 there is lockdown and some restrictions throughout the borders. There is great economical unbalance throughout the world. Many segments have to face economic crises. But many companies of pharmaceutical sector still continue the manufacturing of products used for the treatment of atopic dermatitis. They fulfill the demand of patients and physicians of atopic dermatitis products. There is also increase in the demand of these products and also the price of these products gets increased. This is also beneficial for the leading players in atopic dermatitis market and thus many companies in derma sector gain extra profit in pandemic of COVID-19. Read more COVID-19 Resources