Pharmaceutical Manufacturing Amplifies During COVID-19 Pandemic; Raw Material Shortage to Restrain Growth, Says PMR
Date : Apr 28, 2020 Author : PMR Editorial Staff Category : Healthcare
The COVID-19 pandemic has influenced all the major industries in many aspects.
The COVID-19 pandemic has influenced all the major industries in many aspects. The evolving demand dynamics along disrupted supply chains have a major impact on the growth trajectories of different businesses. Pharmaceutical companies are rapidly adapting to the arising challenges in the market by changing their business processes. The supply of active ingredients for drugs is projected to be influenced by long term cross border trade restrictions. Manufacturing activities along with the ongoing research and developments are expected to feel the heat of the COVID-19 pandemic in case the lockdown across different countries continues to extend. Disruptions in the import and export of active pharmaceutical ingredients from China, a leading manufacturer and exporter of these ingredients, have raised concerns in major corners of the world.
Amid the crisis raised by corona virus, the pharmaceutical sector has landed on the positive side with relaxations in strict lockdown. Though the existing pharmaceutical supply chain is adequately growing to satiate the current demand, the pharma companies are growing concerned about the impact of COVID-19 on the industry in the long term. High demand for certain drugs such as midazolam in treatment of corona virus patients is depleting the existing stocks. Though the manufacturing of such drugs has increased, restricted export from China is projected to hamper the rapid production of these drugs.
Research And Development Activities Surge
Owing to the rise in demand for the detection and prevention of corona virus spread, contract pharma companies have amplified their efforts. For instance, Thermo Fisher Scientific has mobilized its scientific team to support the identification of corona virus along with its vaccine development. Contract manufactures have also grown alert in maintaining hygiene across their facilities and routine testing environment. To stock up their inventory, contract manufactures are collaborating with suppliers that are offering cheap raw materials for products such as dietary supplements whose demand is expected to escalate after the COVID-19 pandemic subsides. The market players are getting prepared for the usual business which is projected to resume in the coming years.
As the world continues to fight the novel corona virus, the role of automation and control systems in the pharmaceutical industry becomes even more critical. The implementation of automation has increased to minimize human intervention in manufacturing activities. Along with enhanced quality and standardization, automated and control systems mitigate the spread of COVID-19. The adoption rate of these advanced systems has increased over the past few years on the back of high efficacy and energy-efficiency.
New Drugs Drive Market Growth
The packaging industry, being an integral part of the pharmaceutical sector is also experiencing the impact of COIVD-19. During this time of the pandemic, many packaging plants are operational to supplement the production of drugs. Along with surged manufacturing activities in the pharmaceutical sector, the use of packaging equipment is driven by the shortage of workforce due to lockdown. Though the demand for pharmaceuticals is on a rise, the packaging sector is facing challenges in transportation of ancillary supplies such as bottles and caps as they are not categorized as essential commodities. Besides the manufacturing of packaging material, their supply has emerged as an area of concern in the pharmaceutical industry.
Pharmaceutical outsourcing generally practiced by contract manufacturing organizations and contract research organizations, is witnessing a surge in the demand for different services in the light of manpower shortage and rise in demand for different drugs. While activities such as marketing have taken a backseat, the demand for preclinical studies and clinical trials are creating momentum in the market. In the quest for effective COVID-19 drugs, the development of new product pipelines has accelerated, creating growth prospects for the outsourcing companies in the pharmaceutical industry.
Social distancing during COVID-19 is also influencing the animal health businesses across the globe, compelling them to comply with government recommendations for flexible work arrangements. Demand for active pharmaceutical ingredients for animal health is anticipated to decrease owing to a decline in the rate of hospital and veterinary visitations during the COVID-19 crisis. Experts claim the current slowdown to be temporary and forecast the market animal healthcare API market to resume its normal course in the days ahead.
The pharmaceutical manufacturing is progressing rapidly at its pace and the market is expected to witness a spike in revenue during COVID-19. PMR predicts the continued disruption in the supply chain to negatively influence the manufacturing processes along with credit profiles and ratings of different pharmaceutical companies. The lack of in-house API manufacturing facilities in pharma companies is expected to cost them in case the import restrictions continue in the long term.
Report Highlights: Global Pharmaceutical manufacturing Market
- Parent market overview with COIVD-19 impact
- The market size in volume and revenue
- developments and trends
- Potentially viable opportunities
- Competition evaluation
- Strategic assessment of market players
- Overall performance matrix during a predefined period