COVID-19 Impact on Zoledronic Acid in Chemicals and Materials Industry
The COVID-19 pandemic has influenced the whole planet with its major impacts on the economy and businesses across the globe. The COVID-19 spread worldwide in unprecedented ways due to its high infectious and contagious nature and lack of availability of its vaccine. As a result, the greatest medical challenge in the 21st century is yet to be faced by physicians worldwide. Though the emergence of the virus can be traced back to Asia, many European countries along with the U.S. have been struck massively by the pandemic. The virus has spread across all regions ranging from North America, Europe, Asia-Pacific, Middle East, and Africa up to South America. The COVID-19 has been declared as a pandemic by World Health Organization (WHO) due to its increased spread across the globe. After the declaration of the pandemic, various countries announced the complete lockdown such as India, China, and other Asian countries to decrease its spread. According to the latest situation report by World Health Organization (WHO), 175 million cases of the corona have been reported globally and 4 million patients are dead due to the coronavirus. On a slightly positive note, a total of 158 million people have recovered and total of 2 million vaccine doses have been administered as well.
The pandemic have affected the Zoledronic acid market in three ways, that is, by directly affecting production and demand, by creating supply chain and market disruption and by its financial impact on firms and financial markets.
· In April, 2020 American Society for Bone and Mineral Research (ASBMR) set up a steering committee of bone specialist to manage the treatment of targeted bone disorders amid pandemic.
The pandemic has negatively impacted the Zoledronic acid market as pharmaceutical companies witnessed a setback in the supply chain management owing to imposition of lockdown by government. The lockdown has also impacted orthopedic appointments negatively as it is crucial to have a physician’s consultation for bone complications and other conditions.
IMPACT ON DEMAND
With the lockdown all orthopedic appointments were discontinued as they are medically unnecessary.
Since the pandemic, lockdown situation the economic growth of country is declining. And the manufacturing units for various items that are considered non-essential are shut down due to the non-availability of manpower.
The pandemic has caused major destruction in the delivery of the healthcare products across the world. It has posed limitations on many patients to access standard health services such as visits to healthcare professionals, medications and diagnosis. It has adversely impacted the ability of patients and practitioners to adhere to treatment guidelines. Moreover, the demand for Zoledronic acid and growing awareness about current and new products is also fueling the market.
· Dr. Reddy’s Laboratories Ltd, which is one of the key producer of Zoledronic acid and its financial performance for the twelve-month period ended 31 December, 2020 stated that they have experienced both negative and positive impacts of the pandemic but overall operations and product demand remained very stable and strong.
However, the negative impact of the pandemic on Zoledronic acid market will be soon mitigated as different states/ countries allow medical clinics to reopen, services and once again being offered.
IMPACT ON PRICE
Due to the pandemic, the market is disturbed to a very big level. The several establishments has to remain shut while others to scale down or put on hold expansion plans as they tried to survive the unprecedented crisis.
Due to the impact of the coronavirus, many large pharmaceutical companies have placed new trials on hold and numerous small, mid-size, and large enterprises have suspended ongoing ones, thereby demonstrating the magnitude of the disruption.
· According to the annual report of Dr. Reddy’s Laboratories the sale of its products increased from USD 1,538.51 million in 2019 to USD 1,746 million in 2020.
4207, 53 million in 2020.
As this lockdown has put manufacturers and distributors in worry due to the hindered supply of the key materials for the product, especially the raw material, it will surely lead to change in prices up to an extent.
IMPACT ON SUPPLY CHAIN
As the world came to halt in the last few months due to the emergence of pandemic, the supply chain couldn’t escape the impact. The government throughout the globe imposed total lockdown which led to supply chain disruptions. Consequently, the supply chain came to standstill due to the closure of borders. Even though the demand for Zoledronic acid remained untouched up to an extent, the availability was affected due to disruption in supply chain, trade and travel restrictions. Supply of raw material, was also affected, due to which the production was effected.
The outsourcing services which are providing warehousing, storage and other services face challenges too. They are totally dependent on the logistic and transportation of chemical compound raw material from the outsourced service to the researchers desk. However, the sudden shut down globally with ban in travel this process get disrupted. Still the companies managed to overcome the challenges and saw high growth.
· Abbott Laboratories continuously kept the close contact with suppliers and customers to mitigate any delays arising from stretched supply chain.
They are in constant communication with their manufacturing supply chain to keep up the supply of products for their customers.
However, the companies have been faced with substantial business and operational disruptions, which includes everything from mitigating the effects of reduced supply, to managing disruptions to logistics suppliers, and indeed hurdles in meeting their own contractual obligations to customers.
The pandemic have forced the companies to rethink their supply chains and their stability and reliability for an uncertain future, including other externalities and government actions through the world, which begun impacting supply chains, such as issues of sustainability.
STRATEGIC INITIATIVES BY KEY PLAYERS
As the reality of COVID-19 dawned upon the world, manufacturing and production unit of companies involved Zoledronic acid key players formed strategies so as to mitigate with the limitations occurred due to the virus and keep their business running
At the individual company level, companies are now more focused on operational resilience and accelerating initiatives that enable more agility, and transparency through greater deployment of analytical tools and automation. Companies are considering re-evaluating their strategies, risk tolerance and overall footprint.
· In September, 2020 a retrospective study was conducted by Journal on oncology in china to check the safety profile of Zoledronic acid. The study aimed to investigate whether the long-term ZA treatment had greater benefits than short-term in patients.
However, to address the crisis all companies in this market are revisiting their financial trajectories and framing new strategies that will lead to bring out solutions in the market resulting in increased business efficiency.
COVID-19 has impacted each and every sector with global Zoledronic acid market being no exception as it has been affected the same. Different companies dealing in Zoledronic acid has been finding out their own way to deal with this pandemic situation. The government and companies around the globe are working together and have issued advice for those undergoing treatment for bone complications during these unprecedented times during COVID-19 lockdown around the world.
However, in the crisis call pharmaceuticals, key players, government bodies and healthcare organizations are working closely with healthcare professionals, customers, and patients for betterment of public health. Thus, it is reasonable to assume that constraints on gathering and movement have disproportionally impacted people who use Zoledronic acid.
Moreover, healthcare industries and government bodies are exclusively concentrating on how they can make effective and best contribution to control the spread of the virus and save lives. They are also ramping up production of essential medicines to new levels and ensure that the speed doesn’t affect or destroy the quality of products.