COVID-19 Impact on Phototherapy Treatment in Healthcare Industry

COVID-19 spread badly across the world with high number of cases reported in various countries of globe. COVID-19 has made very bad effect on daily lives as well as the global economy. Many health care companies have to face various complex challenges due to COVID-19. The first case of COVID-19 was reported in the city of Wuhan, China from where it spread in various countries and become pandemic for world. The pandemic situation has badly affected the health care companies and also become opportunity for some domestic companies.

COVID-19 also affected the global phototherapy treatment market by influencing price of phototherapy treatment, demand and supply of phototherapy treatment and various strategic decisions taken by phototherapy treatment centres. The COVID-19 pandemic has resulted in the closure of many phototherapy units.

Phototherapy is defined as medical treatment that involves exposure to fluorescent light bulbs or other sources of light such as halogen lights, light emitting diodes (LEDs) and sunlight to treat critical medical conditions. The phototherapy is also known as light therapy and heliotherapy.

There are mainly two types of phototherapies: narrowband ultraviolet B (NB-UVB) light therapy and broadband ultraviolet B (BB-UVB). Narrowband ultraviolet B is the most commonly used phototherapy. It can be used to treat plaque or guttate psoriasis. Broadband ultraviolet B (BB-UVB) is an older form of phototherapy than NB-UVB. BB-UVB is the most effective for plaque psoriasis.

TABLE 1  COMPANY NAME - NATUS MEDICAL INCORPORATED

Natus Medical Incorporated is one of the leading players of phototherapy treatment market. But there is decrease in revenue and gross profit of Natus Medical Incorporated in first quarter of 2020 as compared to the revenue and gross profit of company in first quarter of 2019. This shows the negative impact of COVID-19 on global phototherapy treatment market.

Price Impact

The spread of COVID-19 has negative impact on demand of phototherapy treatment. 50% of patients stopped arriving for the phototherapy treatment due to the fear of COVID-19 infection. The COVID-19 spread also lead to closure phototherapy unit across the globe. This closure also has negative impact on global phototherapy treatment market. Most of phototherapy units have increased their price for the generation of more profit.

For instance,

• The average price of UVB therapy is increased to USD 3,600 annual per patient cost is increased from USD 2,600 annual per patient cost.
• The average cost for phototherapy for neonatal jaundice is between USD 3,000 to USD 5,000 is increased from USD 2,703.  

Impact On Demand

The COVID-19 pandemic has resulted in the closure of many phototherapy centers in the world especially in areas which are badly hit by the pandemic and areas where maintaining social distancing is difficult. Currently, there is no guidance on managing a phototherapy service or for resuming the service during pandemic. Because spread of COVID-19 risk varies with disease prevalence and because disease prevalence varies in different locations, the decision to resume phototherapy operations needs are based on local public health recommendations and for medical center based units in consultation with institution’s infection control units. Office phototherapy is generally not only an option. There is also an option of home phototherapy and judicial exposure to natural sunlight that should be weighted. This also affects the demand of phototherapy treatment.

The effect of COVID-19 on phototherapy leads to decrease in demand of phototherapy for the treatment of various diseases. From March, more than 50% of patients stopped arriving to treatment due to the fear of COVID-19 infection.

The chart shows that there is decrease in patients of phototherapy treatment due to spread of COVID-19 leading to the decrease in patients having negative impact on the market of phototherapy treatment. The major cause of decrease in patients going for phototherapy is the fear of COVID-19 infection.

For instance,

• The decrease in phototherapy treatment due to closure of many phototherapy units in the United States and around the world is because of the cause of closure of these phototherapy units spread of COVID-19. Especially the areas which are hardly hit by the pandemic or areas with difficulty in maintaining social distancing are affected more.
• 50% of patients stopped arriving for phototherapy treatment due to fear of spread of COVID-19. This also shows the decrease in demand of phototherapy treatment.

Impact on Supply

As we know that COVID-19 spread badly across the world. Due to spread of COVID-19, lockdown have been imposed by government of various countries. There are restrictions on cross country transportation such as air freights ban across the globe. The transportation restrictions have direct impact on supply chain. This led to a decrease in supply of phototherapy treatment products.

For instance,

• Due to spread of COVID-19, there are restrictions in manufacturing and logistic activities have been suspended. An action plan has been proposed to tackle pandemic based disruptions for fulfilling the need of food grains, ingredients, medicine and other essential items.
• The major suppliers of phototherapy treatment market are the U.S. and China. The global supply had begun responding to the U.S. - China tension and we can expect the disruption caused by COVID-19. Trades analytics also show China lost global export market share at an accelerated pace in 2019 as companies move to other countries. This disruption has direct effect on supply chain of phototherapy treatment products.

STRATEGIC DECISIONS OF MANUFACTURERS

Collaboration, agreements and strategic initiatives by market players such as Safaricom Foundation, Aesthetic Technology Ltd. among others in the phototherapy treatment market will help them to expand their product portfolio. This in turn will lead to increasing product sale and hence will enhance the overall company’s revenue.

Major players of phototherapy treatment market companies are taking many decisions in order to cope up with the current scenario of COVID-19 pandemic. The companies engaged in manufacturing of products of phototherapy treatment are collaborating so as to accelerate the phototherapy treatment market growth.  

The companies have already taken several kinds of strategic initiatives in order to cope up with coronavirus situation.

For instance,

• In August 2019, Safaricom Foundation introduced an infant Sh8 million unit. It helps to enhance motherly and neo-natal healthcare services in the Lamu by installation of new incubators, newborn baby oxygen masks, a phototherapy unit and digital equipment.
• In March 2019, Aesthetic Technology Ltd announced the launch of Tri-Wave MD and the Flex, designed for photodynamic therapy. The device supplies all three wavelengths at an enhanced optical power concurrently.
• In February 2019, Natus Medical Incorporated issued a statement concerning the product recall commercialized during the period of 2011-2016 to March 21. The products sold after the period are upgraded and not affected with the potential discoloration associated with the defective products.

Conclusion

As the pandemic of COVID-19 resulted in several restrictions throughout the boarders, there is great economical unbalance throughout the world. Many segments have to face economic crises but still manufacturers of phototherapy treatment products are able to manage their stocks. Various manufacturers are continuously engaged in conducting clinical trials for demonstrating the safety and efficacy of phototherapy treatment along with this, they are constantly monitoring the supply chain so as to attain a lucrative growth. The rise in price is also beneficial for companies. They are gaining extra profit which is helping them to combat the negative effect on overall revenue for the growth of the global phototherapy treatment market.