4 days ago | Healthcare
COVID-19 Impact on Respiratory Devices in Healthcare Industry
COVID-19 Impact on Respiratory Devices in Healthcare IndustryThe coronavirus pandemic has made an unbelievable effect on global economy system and as well as on daily lives of human beings. The impact on the healthcare sector has been adversely affected too and a huge burden is developed on already pinched healthcare sectors across the globe. Continuous research on coronavirus shows that the COVID-19 pandemic has elevated the psychological distress in both general population and among high risk population.In July 2020, it became obvious that the novel strain of coronavirus or COVID-19 has major impact on the healthcare system in the United States. The Surgeon General, American College of Surgeons and Centers for Medicare and Medicaid Services have stated the issue of delaying or cancelling of non-essential medical and surgical services to decrease the exposure risk of the virus and conserve resources for expected number of infected population.Moreover, during the pandemic phase, the people suffering from respiratory diseases are at higher risk since coronavirus majorly affects or damage the respiratory system and decreases the oxygen demand of the body. Due to this, the respiratory devices industry gained importance and growing with the fastest growth rate. As the number of COVID-19 patients’ increases, the demand of respiratory devices also increased.For instance, According to the Global Data Estimation, approximately 880,000 ventilators are required globally to fight with this pandemic and provide proper treatment facilities to the patients. The respiratory devices market turns out to be life saving for those who need mechanical support to the breathing cycle. Hence, the global respiratory devices market demand is positively impacted by the COVID-19 pandemic.The impact of COVID-19 on respiratory devices market has been described by some pointers such as impact on supply chain, impact on price, impact on demand, impact on healthcare economy, strategic initiatives taken by pharmaceutical industries and government and their conclusion.TABLE 1: TOTAL ESTIMATED PREVALENCE OF DIFFERENT RESPIRATORY DISEASES S. No.Respiratory DiseasePrevalence (in Million)Total Death (Each Year)1.Chronic Obstructive Pulmonary Disease (COPD)65 million3 million2.Asthma334 million489,000 million3.Acute Lower Respiratory Tract Infections4 million4.Tuberculosis (TB)10.4 million1.4 million5.Lung Cancer14.1 million1.6 millionIMPACT ON DEMAND The COVID-19 global pandemic has highlighted the complex interdependencies which exist within the global healthcare sector. The coronavirus disease (COVID-19) pandemic outbreak has created huge demand for respiratory devices such as ventilators, anaesthetic machines and others in the healthcare sector across the world. As day-by-day, the pandemic increases, the demand of the respiratory support devices also increases.For instance,According to the Lancet Regional health USA, the demand of the ventilators was significantly increased or boost up at the peak time of pandemicAccording to studies published by STAT, between 5% to 11% in the U.S. hospitalizations have required intensive care and ventilators to survive with the help of artificial and mechanical breathing support. To support this, GE Healthcare and Ford made collaboration for manufacturing of ventilators for COVID-19 patients. They have announced to work together to scale up the manufacturing due to high demand of ventilators for treating the patients with COVID-19, the respiratory illness caused by the new coronavirusIMPACT ON SUPPLY CHAINThe coronavirus pandemic positivity impacted the respiratory devices market due to the increased demand of ventilators and anesthesia delivery devices as the coronavirus directly affects the respiratory system, which causes breathing problem and damage the lungs, which also boost the respiratory devices market. Even in normal days or situation where governments are attempting universal access to ventilators, the supply of these systems has constant opportunities due to usage factors. The sudden outbreak of COVID-19 and its sub-sequent high demand of ventilators to save the lives of human beings ramps up the supply chain of ventilators to meet the necessary demand across the world.Moreover, several ventilators manufacturing companies are retooling for priority manufacturing to produce other essential medical supplies and equipment such as ventilators. Due to the government support, there are no trade restrictions on domestic manufacturing of essential ventilators. During the pandemic, as the demand increases, other regions are seeking help from each other for ventilators manufacturing which further supports the growth of export and import trade of ventilators market.For instance,To support the local business, in-house business and to meet the continuous demand of respiratory devices during the pandemic, “SpiceJet launches Portable Ventilator named as “SpiceJetOxy” for COVID-19 patients with moderate breathing issues”.Moreover, according to The Economics Times, the Indian Centers decides to allow export of indigenous fatality rate as the fatality rate falls to 2.15 PC with the help of ventilators support in life savings. The Directorate General of Foreign Trade made an statement that all the ventilators including any artificial respiratory apparatus or oxygen therapy apparatus or any other breathing appliances/devices are made ‘free’ for export.Meanwhilein Canada, the Chief Public Health Officer warns of possible surge of COVID-19 due to this, the Canada health ministry ordered more than 40,000 ventilators for an estimated USD 1.10 billion for hospitals, but due to the huge supply demand for ventilators and other respiratory devices, only 606 ventilators were reached in the hospitals hand.IMPACT ON PRICEAs the pandemic increases, the demand and supply for the respiratory devices also increases. The National Government and State Government also support in-house manufacturing of devices to overcome the pandemic. Despite the current crisis, healthcare issue in the country continues to reel under the positive impact of COVID-19. There has been a significant rise in both in-patient and out-patient footfall for some hospital chains as the single specialty, multi-specialty, private hospitals, tertiary-care hospitals or even diagnostics businesses during this lockdown. With the rising demand of ventilators in the market and the preference of saving human beings life around the world, every region is trying to provide the best facilities of ventilators in the market. The manufacturing of low cost ventilators is significantly rising in the market.For instance,An Indian-American couple has developed a low-cost portable emergency ventilator which is soon to hit the production stage and will be available in India and the developing world at an affordable rate to help doctors deal with the COVID-19 patients. The researchers also told that if you can do a manufacturing of scale, it can be produced (item cost) in less than USD 100. Even with a price point of USD 500, they (the manufacturer) would have enough money to make sure that they are making enough profit in the market. The researcher also stated that this type of ventilator have an average cost of USD 10,000 in the United States. But, this is not intended for the ICU or clinical use.According to The Economics Times, the Indian Engineers builds low cost ventilators that will be likely to export to worst affected country such as the U.S. as well that can save many lives from the deadly coronavirus in America. According to the MIT engineers, in the U.S. alone, the COVID-19 pandemic may cause ventilator shortages of 300,000-700,000 units. An increase in conventional ventilator production is very likely to fall short with significant associated costs.According to Financial Express, Indian’s cheapest emergency ventilator is ready to use. Kerala PSU made affordable prices which cost around Rs 15,000 and the model developed by NIT-Calicut would be priced in the range of Rs 7,500 to Rs 8,000.STRATEGIC DECISION BY MANUFACTURERS AND GOVERNMENTThe key players engaged in ventilators manufacturing are making appropriate changes to meet the demand of the services during coronavirus. The innovative companies of ventilators such as Air Liquide, GE Healthcare and many others ramp up their production rate to provide better health facilities to the patient suffering from breathing difficulties. The increase in demand for ventilators in worst affected regions will lead to higher deals for them amid pandemic. Additionally, the industry will also be unaffected by impending recession as the necessity of ventilators will be the priority of the healthcare departments.For instance, Ford Motor Co. partnered with General Electric Co to manufacture about 43,000 ventilators at a factory in sub-urban Detroit. The companies are expecting to reach 50,000 by the end of August to fulfil USD 336 million contracts with the Department of Health and Human Services.Air Liquide, Groupe PSA and Schneider Electric partnered with each other to manufacture medical system respirators or ventilators in response to the French government request. They are abiding to produce 10,000 ventilators in 50 days to save the lives affected by coronavirus.Getinge AB has received 510(k) clearance approval which is a pre-requisite for governmental tenders.” from the U.S. Food & Drug Administration for Servo air mechanical ventilator. The production of the mechanical ventilator will help in ongoing fight against the new coronavirus COVID-19.Moreover, Australia Drug Regulatory agency TGA (Therapeutic Goods Administration) also provides guidance to overcome the pandemic and support the healthcare professionals. The report includes information about advice for use of alternative devices for respiratory support, other unapproved devices (and accessories) intended for respiratory support and other devices intended for respiratory support.CONCLUSION It can be concluded that the COVID-19 pandemic situation is having a positive impact on the global respiratory devices market with the increasing price, supply and demand of the respiratory devices products. However, in the crisis call, pharmaceutical companies work closely with healthcare professionals, customers, patients and other healthcare organizations for the sake or betterment of public health.However, the companies as well as state government are trying to focus on how they can make the most effective and the best contribution to control the spread of the virus and save lives. They are also ramping up their production to new level and ensure that speed doesn’t affect or destroy the quality of products.