Overview
In December 2019, a new viral strain has been reported in Wuhan, China, and was named Coronavirus. Since its arrival in China, it had spread to different parts of the world including Europe, Asia, and the Americas. This coronavirus infection had been declared a pandemic by World Health Organization (WHO) in March 2020. Now, this pandemic is affecting the global economies.
The COVID-19 disease caused by SARS- CoV-2 virus has been reported to affect individuals who already have other types of manifestations such as rheumatoid arthritis, autoimmune disease (multiple sclerosis) among others.
For instance,
- This has been reported that the multiple sclerosis patients who rely on immunomodulatory/immunosuppressive therapies are generally at a higher risk of infection with COVID-19
Impact on Price
As no vaccine has been commercialized against the prevailing COVID-19, the fear of getting infection led the people to remain safe at their homes, this all has resulted in shut down of various manufacturing facilities around the world, which in turn impacted the different types of businesses involving pharmaceutical companies among others.
For instance,
- According to the news of May 2020, as multiple sclerosis is treated with immunosuppressant drugs, fewer patients are visiting neurologists and getting effective treatment because of COVID-19 infections, this is why Merck's drug Mavenclad is suffering a lot
However, as the cases of COVID-19 are declining in some countries, the U.S. and Europe, and some Asia-Pacific regions are still facing a resurgent spread of Coronavirus. The lockdown and ban across the borders caused the shoot up of APIs prices which are used for manufacturing various types of immunosuppressant drugs intended for multiple sclerosis treatment.
European pharmaceutical companies are known to get their products manufactured in India which relies on China for 70% of APIs.
Since 1990, the U.S heavily relied on China and India for the import of pharmaceutical products as these countries are known to provide cheaper APIs, which are subjected to fewer regulations.
Moreover, India imports a large amount of methotrexate, a corticosteroid used for the treatment of multiple sclerosis symptoms from the U.S., following Germany, Finland among others. As the lockdown continues and the import of drugs has been banned, this will lead to a hike in methotrexate prices.
Along with this, the drugs used for multiple sclerosis treatment are also prescribed for the treatment of COVID-19 symptoms which can cause the scarcity of such types of drugs that may lead to an increase in drug prices.
So, it signifies that due to the COVID-19 pandemic, the price of multiple sclerosis treatment drugs is expected to increase.
Impact On Demand
The demand for immunosuppressant drugs is expected to increase due to the increasing prevalence of COVID-19, as this virus has been reported to severely impact people who already have some kind of medical implications.
People having multiple sclerosis are more likely to get affected by coronavirus as they have relied on drugs that cause immune suppression and hence allow the pathogenic organism to easily attack the suspected individual.
For instance,
- As per the news published in June 2020, entitled “Management of Multiple Sclerosis in the Era of COVID-19: Recommendations and Guidance from Penn Neurosciences”, this has been demonstrated that discontinuation of multiple sclerosis treatment drugs is likely to increase the disease severity and on the other hand, the continuation of such therapies can lead them to get infected with coronavirus due to immune suppression. However, the same report suggested continuing multiple sclerosis therapies, particularly those who rely on the platform therapies and should continue immunomodulatory therapies as these therapies pose minimal chances of COVID-19.
This signifies that increase chances of COVID-19 infections to multiple sclerosis patients are expected to increase the demand for drugs used for multiple sclerosis treatment.
Thus, the demand for multiple sclerosis treatment markets is expected to increase with the COVID-19 prevalence.
Impact on Supply Chain
Due to the continuing pandemic of COVID-19, various kinds of restrictions have been imposed by the government of countries which involves the lockdown of manufacturing facilities and ban across the country’s borders. These restrictions have led to the extreme shortage of drugs and the APIs needed for the manufacturing of immunosuppressant drugs.
Along with this, the current pharmaceutical manufacturing units are largely dependent on China for APIs as it cost-effectively provides the bulk of drugs.
Due to such impact, various companies are trying to diversify their supply chain to minimize the risk that arises due to disruption of the supply chain rising from one countryside.
Market players are aware of the loss that they may likely suffer due to disruption of the supply chain, that’s why they are continuously monitoring the product supplies to prevent themselves from hampering of drug supply.
For instance,
- In March 2020, Acorda Therapeutics, Inc. stated that since the COVID-19 outbreak, the company is closely monitoring the supply chain of its medicines. Acorda Therapeutics, Inc. procures API for manufacturing of AMPYRA (dalfampridine) from the U.S., while the company manufactures its drug in Ireland. The company allowed providing this product through dedicated pharmacies daily and ensures that all patients have uninterrupted access to AMPYRA
This thus signifies that COVID-19 is impacting the supply chain of the multiple sclerosis treatment markets but several initiatives taken by market players are helping them to combat those effects.
STRATEGIC DECISIONS FOR MANUFACTURERS
Long-term COVID-19 is acting as a hampering agent for various manufacturers engaged in the pharmaceutical industry involving those engaged in manufacturing drugs for multiple sclerosis treatment. This COVID-19 prevalence is on one side impacting the revenue of the companies but on the other side, creating an opportunity for them to accelerate their business by taking several kinds of strategic initiatives.
For instance,
- In August 2020, Mylan N.V. launched Tecfidera, a generic drug in the U.S. for the treatment of relapsing forms of multiple sclerosis. This generic drug launch during the COVID-19 pandemic allowed the company to compensate for the drop in revenue due to the prevailing pandemic situation.
- In May 2020, TG Therapeutics presented positive data obtained through phase 2 clinical trial of ublituximab when applied in multiple sclerosis patients. The result obtained demonstrated that ublituximab is well tolerated in multiple sclerosis patients and has experienced relapse relief after treatment through this pipeline drug. This step suggested that the company is continuously conducting research and developmental activities to maintain a constant outstanding position in the multiple sclerosis treatment markets
- In April 2020, Novartis AG obtained positive data from the application of Mayzent (siponimod) in patients suffering from secondary progressive multiple sclerosis. This data demonstrated that patients having progressive multiple sclerosis when treated with Mayzent experienced a lower risk of disability and less cognition. This initiative suggests that the company is still doing extensive research in the multiple sclerosis treatment markets even during the COVID-19 pandemic
This thus signifies that the adoption of such initiatives by the market players is helping them to grow their business throughout the COVID-19 pandemic.
Conclusion
As the COVID-19 pandemic has posed barriers throughout the borders, caused social distancing but still, several pharmaceutical companies are continuously managing their products stocks. Along with this, the market manufacturers are continuously monitoring their supply chain to obtain product development on time.
Moreover, the market players are raising the drug prices to gain extra profit which helps them to combat the overall effect on revenue. In addition, the increased chances of COVID-19 infection to multiple sclerosis patients have also enhanced the demand for immunomodulatory therapies used for multiple sclerosis treatment that has led the companies to earn more benefits.
