Senior management of biopharma companies across North America, Europe and the Asia Pacific (APAC) region were more optimistic about the COVID-19 pandemic’s impact on annual revenue in Q3 2020 compared to Q1, according to a recent survey by GlobalData, a leading data and analytics company.
Pharma Analyst at GlobalData, Fiona Barry comments: “Biopharma executives and other senior staff were more likely to predict positive revenue forecasts and less likely to issue negative forecasts in Q3 compared to Q1. North America and Europe were significantly more optimistic in Q3, while APAC respondents showed a smaller but noticeable increase in revenue predictions. The rest of the world has also increased revenue predictions, although this was based off a small sample size – so the strength of this finding may be limited.”
GlobalData’s survey found that employee safety remains the primary business concern across all geographies, followed by the pandemic’s impact on supply chains.
Barry continues: “Companies with marketed drugs were more concerned about employee safety, as marketed drug companies have more staff than pipeline companies and a higher proportion of sales and manufacturing staff. Marketed drug companies were also concerned about supply chains, as marketed drugs are made and distributed in higher volumes than preclinical or clinical batches.”
No marketed drug companies expressed concerns about raising money in Q3, which shows a more optimistic view than in Q1.
Barry adds: “This optimism is a response to investors’ strong appetite for pharma companies, fed by low interest rates coupled with stock markets rallying after an initial downturn at the start of the pandemic.”
COVID-19 pandemic impacting urinary tract stents market with 11.4% lost revenue expected in 2020
Many surgical procedures have been postponed during 2020 due to COVID-19. This will lead to over 11% loss of revenue from urinary tract stents in the US, according to GlobalData, a leading data and analytics company,
GlobalData includes ureteral, prostate and urethral stents within this market for indications such as urolithiasis, urethral strictures, pyeloplasty, benign prostatic hyperplasia (BPH) and prostate cancer. Boston Scientific, Cook Group and Becton Dickinson are the market leaders for urinary tract stent sales and most revenue lost during the COVID-19 pandemic will be experienced by these companies.
Senior Medical Devices Analyst at GlobalData, Eric Chapman says: “GlobalData estimates an overall reduction of 11.4% of revenue for urinary tract stents by the end of 2020, compared to previous forecasts before the outbreak of SARS-COV2. In Q1 2020, procedures were beginning to be postponed in the US from around mid-March (two out of 12 weeks), and as a result, sales were already down 10.5%. By Q2 2020, as the number of new COVID-19 cases had reached a peak and many procedures had been cancelled or postponed, the market was down approximately 34%.”
In Q3 2020, the market has begun to experience a gradual recovery as procedures have been rescheduled. Initially, GlobalData estimated an overall reduction of 15% of revenue for the quarter, compared to predictions before the COVID-19 outbreak. Yet, a resurgence of new COVID-19 cases might result in new delays for procedures.
Chapman adds: “By Q4 2020, GlobalData anticipates the start of a ‘surge period’ for the urinary tract stents market, to make up for procedures that were postponed earlier in the year. However, this surge will not be enough to offset revenue losses until the end of 2021 or early 2022.”