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HEALTHCARE
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© 2020 MARKETSANDMARKETS | WWW.MARKETSANDMARKETS.COM
CORONA VIRUS PANDEMIC - EXTRAORDINARY TIMES CALL FOR EXTRAORDINARY MEASURES
The World is fighting the Novel Corona Virus Disease 2019 (COVID 19) Every company has created war rooms to fight this situation. They have
health pandemic. No one ever needed healthcare experts more than no idea how other similar companies are thinking and taking next steps;
now! Despite having no prior experience with virus as resilient as how their clients are changing priorities, reducing their spends in some
COVID19, Healthcare experts have stepped up and put their lives at and increasing investments in other specific areas, shifting product
stake to serve the Mankind. Their sincere intent for saving lives and lines, addressing blind spots in their supply chain, and how their
humanity has won them immense trust and respect! We salute all the ecosystem is rapidly getting impacted across geographies and several
Healthcare Experts. Truly inspirational. sectors!
There is similar war being fought in parallel ─ the Economic pandemic! This is a dual war ─ with the healthcare pandemic and the economic
Caused by complete lockdown across hundreds of countries to beat pandemic!
COVID 19, CXO’s worldwide in every company are fighting the Economic
pandemic. The magnitude of this pandemic is in Trillions of Dollars!
Our 1,000 analysts and experts are working day and night, engaging all stakeholders of
client companies ─ their clients, their clients’ clients and vendors to find rapid shifts and
unprecedented decisions being taken by CXOs and making this available to all board
rooms swiftly to help them sustain the economic pandemic, and enable survival of their
companies with right choices!
It is insights from this work that we are now bringing to you as a series of CXO Decks across
vertical domains. This CXO slide deck will help Healthcare CXOs to gauge the impact of
short term changes with their clients’ clients.
Hope you find these insights useful. If you require any additional insights, or would like to
get into a free workshop to contextualize our insights for you, please feel free to call us on
+1-888-600-6441 (US)/ +44-800-368-9399 or write to us on
info@marketsandmarkets.com
Above all, please stay safe and keep your community safe with social distancing. Wishing
you the best!
Sandeep Sugla
CEO, MarketsandMarkets
The true number of infected people is probably higher than the official total, as some mild and asymptomatic
cases are likely not tested and counted **Data as of
1,048
5,018
March 22, 2020
21,463
233
13
81,499 8,897
67
14,296 UK 21,638
Canada 104
15,219
Germany 3,267
562 France 1,685
Republic 1,046
201 China of Korea
US 24,926
164 Spain Italy Iran
341 36
Japan
294,110
53,578
1 1,326
5
4,827 India
GLOBAL CONFIRMED CASES Mexico
915
12,944 40
Africa
TOTAL DEATHS
No. of
Positive
186 Cases
No. of
COUNTRIES/TERRITORIES Death Propagation Limited Ongoing Ongoing Mature Decline
/AREAS AFFECTED
Source: WHO (World Health Organization) Coronavirus Disease 2019; data as of March 22, 2020. Graph is not to scale. Numbers are actual reported cases.
China Other Asia Pacific G20 North America World Commodity Exporters Europe
0.0
Change in GDP growth in 2020 relative to baseline (%)
-0.2
-0.4
-0.6
-0.8
-1.0
-1.2
-1.4
-1.6
-1.8
Source: OECD Interim Economic Assessment Coronavirus: The world economy at risk March 2, 2020; Accessed on March 18, 2020
SCENARIO / WILD PROGRESSION WITH GLOBAL MODERATE PROGRESSION AND GLOBAL MILD PROGRESSION WITH SHORT-TERM
CRITERIA RECESSION (PESSIMISTIC) ECONOMIC SLOWDOWN (REALISITC) IMPACT (OPTIMISTIC)
Less than 195 countries but more than 150 Less than 100 countries reporting
No. of countries reporting cases All 195 reporting positive cases
countries reporting positive case positive cases
No. of countries under lockdown More than 100 countries, with more than Between 100 to 50 countries under lockdown for Less than 50 countries under lockdown
and duration of lockdown 12 months lockdown 6 to 9 months for 3 to 6 months
Effect on the global economy to the tune British and US economy falls by 1.5% and
Global economic impact — affecting Asia, Africa,
of USD9.2 trillion. British and US 2% respectively. US unemployment rate
Dip in economic activities and the Middle East. The EU proposes increasing
economy shrink by 4.2% and 8.4% soars to 5% due to lockdowns, but
liquidity to at least 10% of GDP
respectively by the end of 2020. gradually recovers by December 2020
Recovery expected to be gradual through Drop in confidence and supply chain disruption to Initial dip in worldwide consumer demand
Recovery period 2021 & Severe negative impact on intensify impact. Dip in manufacturing activities to bounce back quickly and stabilize over
employment rates and employment. time.
The COVID-19 outbreak is severely impacting global markets and businesses across sectors and industries, forcing companies to actively plan for sustainability instead of
continuing with their growth strategies. This outbreak is also forcing companies to look at various opportunities for sustainability and business continuity
monitoring devices, ventilators will be faster due to public response to Monitoring , Virtual care, and ▪ Drug supply shortage due to
will see sudden increase in ▪ Current fields of diagnostic tests healthcare authorities healthcare at home will go up manufacturing lockdowns and
demand such as PCR will show increased ▪ Shortage of supplies and sudden significantly. unavailability of APIs
▪ Demand for other Medical reagents and equipment increase in the prices ▪ Adoption of digital and virtual ▪ Contract Manufacturing
devices, such as CT Scanners demands platforms will increase Organization will face challenges
and hospital beds, will also see ▪ Supply may take a temporary hit for short to mid term duration
increasing demands and will have irregular supply ▪ Surge in new drug discovery and
▪ Manufacturing schedules will be vaccines development for the
delayed due to lockdown treatment of COVID-19
situation ▪ Ongoing clinical trials of drugs
apart from COVID-19 will take a
backseat; potential delay in
launching new drugs for other
indications.
▪ Clinical Research Organizations
will get fewer number of projects
MEDICAL DEVICES DIAGNOSTICS INFECTION CONTROL HEALTHCARE IT PHARMA & BIOTECH CLINICAL RESEARCH
IMPACT OF COVID-19 IN THE TECHNOLOGY SPACE
▪ Surge in the number of ▪ Roche and Thermo ▪ Usage of disinfectants ▪ Healthcare IT will play a ▪ Drug Repurposing: 31 ▪ In pandemic countries
patients will drive Fisher collectively have and masks has surged. crucial role in providing existing drugs have been which are clinical
demand for various nearly 2 million tests Many regulatory treatment to other identified as potential research hot spot,
medical devices namely available, with more to authorities are diseases when drug candidates for hospitals and
medical beds, come for screening expanding the list of healthcare facilities are COVID-19 investigators are
ventilators, COVID -19 approved disinfectants affected by the high ▪ Around 10 vaccines are overwhelmed by COVID-
thermometers, multi- ▪ Many key POC ▪ Many large, mid-sized, COVID -19 patient load under various phases of 19 patients, and, as a
parameter monitors and companies such as and small companies and must prioritize development consequence, have to
thermometers Cepheid, Mesa Biotec will ramp-up capacities COVID-19 patients over ▪ New drug or Vaccine deprioritize ongoing
▪ Countries like the US, are investing in to cater to sudden spike other diseases against COVID-19 will be trials.
Italy, Spain, and Iran will developing rapid in demand ▪ To reach out to available latest by 2021 ▪ Clinical Research and
register shortage of coronavirus testing ▪ This demand will physicians, pharma ▪ 80% of API required for new product launches for
these devices ▪ Some companies such continue for the next six- companies will adopt US pharmaceutical other indications will be
nationwide as Randox Laboratories nine months and digital and virtual manufacturing is delayed significantly
▪ Medtronic, Hamilton, and Credo diagnostics decline platform to ensure imported from India and ▪ Some of the pharma &
ResMed, and other have already developed business continuity China biotech companies are
players will have to POC test during restricted access ▪ Countries apart from likely to stop or withdraw
ramp-up capacities to to Medical Reps China, Italy & India that ongoing trials for two-
▪ Benefits for diagnostic
make ventilators ▪ Healthcare IT will have can supply APIs will three quarters
companies over the next
available sustained demand post garner market shares ▪ E-clinical trials likely to
three to four quarters
▪ This demand will last for COVID-19, reliance on from existing suppliers see increased adoption
the next three-four HCIT technology will
quarters become a routine
CROs
unochemistry Diabetes
Radioimmunoassay Western Blot RNA Sequencing
▪ Tissue Diagnostics
Home Care
Immunohistochemistry Immunofluorescence ▪ Companion
Chip Sequencing
Lab Services
Infectious Disease Diagnostics
Clinical Chemistry Immunoprecipitation Spectroscopy ▪ Precision Medicine
Whole Genome Sequencing
Core Technologies
Pharmaceutical
Flow Cytometry Chromatography Process Validation
Companies
& Biotech
Exome Sequencing Oncology/Cancer
Next-Generation
Nanopore Sequencing
Sequencing
End Users
Molecular De Novo Sequencing
Electrophoresis RT-PCR Cardiology
Diagnostics
▪ Biomarker
Academic &
Nucleic Acid Extraction Calibrators
Institutes
Research
Microarray and Purification Discovery
▪ Disease Diagnosis
MDx Reagents Nephrology ▪ Drug Testing/
Clinical Coagulation &
Reagents
Hematology Pharmacogenomis
Microbiology Hemostasis Hematology Reagents ▪ Proteomics
Hospitals/
Clinics
Autoimmune Diseases ▪ Genomics
Microbiology Reagents ▪ Drug Discovery
Hand Held Devices Analyzers Rapid Test Kits
Instruments
▪ Prognostics
▪ POC Testing
QC Reagents
HIV/AIDS ▪ Multiplex assays
Labs
Home Care Devices POC Devices Immunoassay
Reagents
Immediate Impact Impact in next 5-6 months No Impact Source: MarketsandMarkets analysis
SURGE IN DEMAND FOR TESTING Countries such as Singapore, Taiwan and Hong Kong
▪ With recent exponential rise of COVID- 19 cases in countries such as China, US, and Italy, the world has now understood the have showed limited impact despite their proximity to
importance of testing and increased testing capabilities. There are many tests available in the market, but the need of the hour is a China.
more accurate diagnostic solution to reduce the spread of Covid-19 coronavirus.
▪ A Shift is now visible in testing regime, from centralized lab-based testing-that took days to provide results-to POC-based tests. Many The three regions have managed to keep case numbers
regulatory authorities have implemented rapid COVID-19 testing guidelines including, including USFDA, and approving tests under
Emergency Use Authorization (EUA). This is resulting in emergence of new tools using POC diagnostics.
and fatalities low by rapidly deploying widespread
▪ For example, Cepheid’s rapid POC test was recently approved by the USFDA; this development paves the way for more rapid POC
testing, combined with digital surveillance to trace
tests. Other countries are also focusing on rapid POC testing. individuals’ movements, and impose strict quarantines
in suspect cases.
CENTRALIZED LAB TESTING RAPID POINT OF CARE TESTING Roche Diagnostics, Thermo Fisher Scientific, Qiagen
(soon to be acquired by Thermo Fisher) and Quest
TAKES FEW DAYS TAKES FEW HOURS Diagnostics are ramping up the capacity to perform
tests by rolling out automated SARS-CoV-2 testing
systems and services.
TESTING SERVICES
▪ Some private companies, including Lab Corp and Quest Diagnostics, have started offering testing services for the virus already, in CURRENT EUA LANDSCAPE
addition to state and hospital labs. The participation of the private sector is likely to provide better commercial opportunities as well FOR COMMERCIAL TESTING
as faster disease control in various countries.
▪ These include Instrument-agnostic test kits and tests
SUPPLY CHAIN that run on a designated test system or instrument.
▪ Five of the assays that have been granted EUA—from
▪ The spread of COVID-19 has exposed major gaps in the abilities of most countries to respond to a virulent new pathogen, especially
from the standpoint of raw materials. The unavailability of reagents has been a key factor limiting the mass distribution of COVID-19
Roche, Hologic, Abbott, GenMark, and DiaSorin
tests. Molecular—can only be run on those companies' test
▪ To fulfill the increasing demand suppliers of testing materials have also ramped up production. Companies such as Promega systems, while two other test kits—from Thermo
Corporation are helping supply materials used in COVID-19 diagnostic tests. Fisher Scientific and Quidel – can potentially run on
other PCR systems.
▪ Abbott
Old Laboratories Hospital/Clinics
Sources ▪ Becton, Dickinson &
New Use Case Company
Old New Technologies/Dressings ▪ Biomérieux
Sources New New Ecosystem Market ▪ Bio-Rad
Sources New Product/Offering New Sources Laboratories
New Client/Partners/Target M&A Immunoassay Academic
▪ Danaher
▪ F. Hoffman-La Lateral Flow Research
* Likely revenue mix Roche Ltd. INFECTIOUS Institutes
▪ Merck KGaA DISEASES
▪ Qiagen
Pharmaceutical
▪ Oncology/Cancer Diagnostics ▪ Thermo Fisher
Bioinformatics Biotech
▪ Precision Medicine Scientific
▪ Infectious Disease ▪ Oncology/Cancer ▪ Illumina, Inc. Companies
▪ Biomarker Discovery
Diagnostics Diagnostics ▪ Agilent
▪ Sequencing
▪ RT-PCR ▪ Precision Medicine Technologies, Inc.
▪ POC
▪ Immunoassay ▪ Biomarker Discovery CROs
(Lateral Flow) ▪ Sequencing
Sequencing
▪ Rapid Tests ▪ POC
Home Care
DISINFECTION TECHNOLOGIES
HOSPITALS & CLINICS
INFECTION CONTROLL & STERILIZATION TECHNOLOGIES
Hydrogen Peroxide
Moist Heat Sterilizers Dry Heat Sterilizers Ethylene Oxide Sterilizers PHARMA & BIOPHARMA
Sterilizers
Sterilizers MANUFACTURERS
Radiation Sterilization Filtration Sterilization
Formaldehyde Sterilizers
Equipment Equipment
Sterilization Consumables Chemical Indicators Biological Indicators Packaging Accessories RESEARCH ORGANIZATIONS,
ACADEMIC INSTITUTES, CONTRACT
Sterilization Services Ethylene Oxide Gamma E-Beam Steam MANUFACTURERS, LABORATORIES
GROWTH% IN 2020 KEY AERA OF IMPACT GROWTH% IN 2020 KEY AERA OF IMPACT GROWTH% IN 2020 KEY AERA OF IMPACT
No COVID-19 Next two quarter Next 6-12 Months Average High High to Moderate
▪ The emergence of the COVID-19 pandemic has resulted in unprecedented demand of product segments such as hand disinfectants, skin
disinfectants, and surface disinfectants. These product segments and disposables are expected to be significant revenue drivers for several
manufacturers in the next two quarters to two years.
▪ Governments across the globe are providing funds for medical devices and disposables required to cater to the sudden increase in infected
patients. This has increased pressure on the stakeholders of the medical devices industry to strengthen their existing manufacturing capabilities
and supply chains
▪ There is a resultant high demand for other personal protective equipment and gear like masks, aprons, gloves and hazmat suits. In response,
existing players in the market, along with new entrants, are working to strengthen their position in the respective markets.
• On March 20, 2020, Beiersdorf started the serial production of medical-grade disinfectants to support the fight against the coronavirus pandemic
in Europe. This is a leading example of repurposing of production line to support critical-need products.
• In February 2020, Lanxess, a Germany-based specialty chemicals company with strong biocidal technology capabilities, came out with a high-level
disinfectant, Rely+On Virkon, which is considered effective against the coronavirus.
• In an interesting development of a novel technology emerging on the market landscape, Sisak Company started promoting an Ozone-based
surface disinfectant which unique advantage of not leaving any chemical residue on the surface.
• Anabec Systems, Anasphere, which works by destabilizing membrane of Virus cell, is considered a major breakthrough in inhibiting the spread of
covid-19. it recently received EPA clearance on March 19, 2020 and is expected to emerge as a major weapon to fight the pandemic.
KEY DIFFERENTIATORS
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revenues (10 years of research by 1000 analysts)
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▪ Our 1,000 fulltime analyst and SMEs track global high growth markets following the "Growth Engagement Model - GEM". The GEM
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value chains for deeper understanding of the unmet insights along with market sizing and forecasts of niche markets.
▪ Unique lens of analysing interconnected ecosystems makes us uniquely positioned to understand the revenue shifts and impact
of COVID-19 to assist our clients in this unprecedented pandemic catastrophe
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