{"id":108,"date":"2020-12-08T09:36:56","date_gmt":"2020-12-08T09:36:56","guid":{"rendered":"https:\/\/sars-cov-2.creative-biolabs.com\/blog\/?p=108"},"modified":"2021-12-10T02:46:35","modified_gmt":"2021-12-10T02:46:35","slug":"the-impact-of-covid-19-on-biopharmaceutical-rd-business-significance","status":"publish","type":"post","link":"https:\/\/sars-cov-2.creative-biolabs.com\/blog\/the-impact-of-covid-19-on-biopharmaceutical-rd-business-significance\/","title":{"rendered":"The Impact of COVID-19 on Biopharmaceutical R&#038;D \u2014Business Significance"},"content":{"rendered":"<p style=\"text-align: center;\"><span style=\"font-size: 14pt;\"><strong>Global Economic Outlook<\/strong><\/span><\/p>\n<p><span style=\"font-size: 14pt;\">COVID-19 is tipping the global economy into a tailspin, wiping out years of market gains.<\/span><\/p>\n<p><span style=\"font-size: 14pt;\">The recession in 2020 is expected to be greater than the 2007-08 crisis:<\/span><\/p>\n<ul>\n<li><span style=\"font-size: 14pt;\">Global GDP fell by 4.6%, notably in advanced economies.<\/span><\/li>\n<li><span style=\"font-size: 14pt;\">It will bounce back to pre-coronavirus levels by the end of 2021, but the US and eurozone may lag further behind.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-size: 14pt;\"><strong>Fitch Ratings global Economic Outlook<\/strong><\/span><\/p>\n<p><span style=\"font-size: 14pt;\"><strong> <img decoding=\"async\" loading=\"lazy\" class=\" wp-image-103 aligncenter\" src=\"https:\/\/sars-cov-2.creative-biolabs.com\/blog\/wp-content\/uploads\/2021\/12\/13-300x147.png\" alt=\"\" width=\"525\" height=\"257\" srcset=\"https:\/\/sars-cov-2.creative-biolabs.com\/blog\/wp-content\/uploads\/2021\/12\/13-300x147.png 300w, https:\/\/sars-cov-2.creative-biolabs.com\/blog\/wp-content\/uploads\/2021\/12\/13-1024x503.png 1024w, https:\/\/sars-cov-2.creative-biolabs.com\/blog\/wp-content\/uploads\/2021\/12\/13-768x377.png 768w, https:\/\/sars-cov-2.creative-biolabs.com\/blog\/wp-content\/uploads\/2021\/12\/13.png 1243w\" sizes=\"(max-width: 525px) 100vw, 525px\" \/><\/strong><\/span><\/p>\n<p><span style=\"font-size: 14pt;\"><strong>Year-to-date returns, S&amp;P 500 index vs. Nasdaq Biotechnology index<\/strong><\/span><\/p>\n<p><span style=\"font-size: 14pt;\"><img decoding=\"async\" loading=\"lazy\" class=\" wp-image-109 aligncenter\" src=\"https:\/\/sars-cov-2.creative-biolabs.com\/blog\/wp-content\/uploads\/2021\/12\/14-300x195.png\" alt=\"\" width=\"484\" height=\"315\" srcset=\"https:\/\/sars-cov-2.creative-biolabs.com\/blog\/wp-content\/uploads\/2021\/12\/14-300x195.png 300w, https:\/\/sars-cov-2.creative-biolabs.com\/blog\/wp-content\/uploads\/2021\/12\/14-1024x667.png 1024w, https:\/\/sars-cov-2.creative-biolabs.com\/blog\/wp-content\/uploads\/2021\/12\/14-768x500.png 768w, https:\/\/sars-cov-2.creative-biolabs.com\/blog\/wp-content\/uploads\/2021\/12\/14.png 1116w\" sizes=\"(max-width: 484px) 100vw, 484px\" \/> <\/span><\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: center;\"><span style=\"font-size: 14pt;\"><strong>Biopharmaceutical&#8217;s First-quarter Earnings Call<\/strong><\/span><\/p>\n<p><span style=\"font-size: 14pt;\"><strong>While the long-term outlook is unclear, business and underlying demand in the first quarter show some resilience.<\/strong><\/span><\/p>\n<p><span style=\"font-size: 14pt;\">Large pharmaceutical companies generally report strong underlying demand and limited impact of COVID-19.<\/span><\/p>\n<ul>\n<li><span style=\"font-size: 14pt;\">While one-time treatments are often delayed, sales of long-term Rx and OTC drugs remain robust. Many companies experienced short-term COVID-19 earnings growth due to wholesaler inventories and increased Rx renewals in the first quarter.<\/span><\/li>\n<li><span style=\"font-size: 14pt;\">Johnson &amp; Johnson Medical Device Business was exposed for fewer optional procedures.<\/span><\/li>\n<li><span style=\"font-size: 14pt;\">Other operations, such as ophthalmology and veterinary medicine, were adversely affected.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-size: 14pt;\">While the long-term outlook is unclear, most companies have reaffirmed their previous 2020 guidance.<\/span><\/p>\n<p><span style=\"font-size: 14pt;\"><img decoding=\"async\" loading=\"lazy\" class=\" wp-image-110 aligncenter\" src=\"https:\/\/sars-cov-2.creative-biolabs.com\/blog\/wp-content\/uploads\/2021\/12\/15-300x174.png\" alt=\"\" width=\"511\" height=\"296\" srcset=\"https:\/\/sars-cov-2.creative-biolabs.com\/blog\/wp-content\/uploads\/2021\/12\/15-300x174.png 300w, https:\/\/sars-cov-2.creative-biolabs.com\/blog\/wp-content\/uploads\/2021\/12\/15-1024x595.png 1024w, https:\/\/sars-cov-2.creative-biolabs.com\/blog\/wp-content\/uploads\/2021\/12\/15-768x446.png 768w, https:\/\/sars-cov-2.creative-biolabs.com\/blog\/wp-content\/uploads\/2021\/12\/15.png 1306w\" sizes=\"(max-width: 511px) 100vw, 511px\" \/><\/span><\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: center;\"><span style=\"font-size: 14pt;\"><strong>Business Model During and After COVID-19<\/strong><\/span><\/p>\n<p><span style=\"font-size: 14pt;\"><strong>Telemedicine provides a different competitive environment for biopharmaceutical companies.<\/strong><\/span><\/p>\n<p><span style=\"font-size: 14pt;\">Despite organizational management challenges, the COVID-19 pandemic has made telemedicine a necessity for universal adoption.<\/span><\/p>\n<ul>\n<li><span style=\"font-size: 14pt;\">Given its practical benefits, this trend is highly unlikely to reverse.<\/span><\/li>\n<li><span style=\"font-size: 14pt;\">Biopharmaceutical companies must adapt to new strategies for doctor-patient interaction and digital sales.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-size: 14pt;\"><strong>Routine triage of patients during and after COVID-19<\/strong><\/span><\/p>\n<p><span style=\"font-size: 14pt;\"><img decoding=\"async\" loading=\"lazy\" class=\" wp-image-111 aligncenter\" src=\"https:\/\/sars-cov-2.creative-biolabs.com\/blog\/wp-content\/uploads\/2021\/12\/16-300x90.png\" alt=\"\" width=\"426\" height=\"128\" srcset=\"https:\/\/sars-cov-2.creative-biolabs.com\/blog\/wp-content\/uploads\/2021\/12\/16-300x90.png 300w, https:\/\/sars-cov-2.creative-biolabs.com\/blog\/wp-content\/uploads\/2021\/12\/16-768x231.png 768w, https:\/\/sars-cov-2.creative-biolabs.com\/blog\/wp-content\/uploads\/2021\/12\/16.png 919w\" sizes=\"(max-width: 426px) 100vw, 426px\" \/><\/span><\/p>\n<p><span style=\"font-size: 14pt;\"><strong>Drug properties required for telemedicine practice<\/strong><\/span><\/p>\n<p><span style=\"font-size: 14pt;\"><img decoding=\"async\" loading=\"lazy\" class=\" wp-image-112 aligncenter\" src=\"https:\/\/sars-cov-2.creative-biolabs.com\/blog\/wp-content\/uploads\/2021\/12\/17-300x134.png\" alt=\"\" width=\"566\" height=\"253\" srcset=\"https:\/\/sars-cov-2.creative-biolabs.com\/blog\/wp-content\/uploads\/2021\/12\/17-300x134.png 300w, https:\/\/sars-cov-2.creative-biolabs.com\/blog\/wp-content\/uploads\/2021\/12\/17-768x343.png 768w, https:\/\/sars-cov-2.creative-biolabs.com\/blog\/wp-content\/uploads\/2021\/12\/17-604x270.png 604w, https:\/\/sars-cov-2.creative-biolabs.com\/blog\/wp-content\/uploads\/2021\/12\/17.png 911w\" sizes=\"(max-width: 566px) 100vw, 566px\" \/><\/span><\/p>\n<p><span style=\"font-size: 14pt;\"><strong>Telemedicine will also lead to a realignment of desired target product features.<\/strong><\/span><\/p>\n<ul>\n<li><span style=\"font-size: 14pt;\">Sanofi has raised expectations for Dupixent.<\/span><\/li>\n<li><span style=\"font-size: 14pt;\">Is Inclisran still worth $10 billion?<\/span><\/li>\n<li><span style=\"font-size: 14pt;\">Interesting case studies of RISdiplam, Spinraza and Zolgensma in the SMA market.<\/span><\/li>\n<li><span style=\"font-size: 14pt;\">Developing a telemedicine drug in a clinical trial could give it a competitive labelling advantage.<\/span><\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: center;\"><span style=\"font-size: 14pt;\"><strong>The transition from Clinical to Commercial<\/strong><\/span><\/p>\n<p><span style=\"font-size: 14pt;\">COVID-19 is an important opportunity to rebuild public reputation and trust.<\/span><\/p>\n<p><span style=\"font-size: 14pt;\">Public opinion polls routinely and consistently paint a very negative picture of pharmaceutical companies.<\/span><\/p>\n<ul>\n<li><span style=\"font-size: 14pt;\">According to a 2016 Harris Poll, more than nine out of 10 Americans think drug companies care more about profits than patients.<\/span><\/li>\n<li><span style=\"font-size: 14pt;\">The pharmaceutical industry ranked last out of 25 in a Gallup poll released in 2019, below the federal government.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-size: 14pt;\">But since the COVID-19 outbreak,Harris has noticed a steady improvement in the perception of the biopharmaceutical industry.<\/span><\/p>\n<p><span style=\"font-size: 14pt;\">\u00a0&#8220;While the epidemic has devastated many industries, it offers big pharma an unprecedented opportunity to regain the trust of a public angered by years of skyrocketing drug prices. Will they seize the moment?&#8221;<\/span><\/p>\n<p><span style=\"font-size: 14pt;\"><strong>The reputational pitfalls that pharmaceutical companies need to deal with are:<\/strong><\/span><\/p>\n<ul>\n<li><span style=\"font-size: 14pt;\">Over-commitment and under-delivery on timetables.<\/span><\/li>\n<li><span style=\"font-size: 14pt;\">Manage the transition from clinical to commercial acquisition.<\/span><\/li>\n<li><span style=\"font-size: 14pt;\">The rising tide of nationalism against drug\/vaccine tenders has lifted all boats.<\/span><\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: center;\"><span style=\"font-size: 14pt;\"><strong>COVID-19 Presents Many Challenges and Opportunities for the Modernization of the Biopharmaceutical Industry<\/strong><\/span><\/p>\n<p><span style=\"font-size: 14pt;\"><strong>Clinical research<\/strong><\/span><\/p>\n<ul>\n<li><span style=\"font-size: 14pt;\">Although unprecedented research and development activities are only just beginning to bear fruit, the scale of the collaboration is sure to lead to further success.<\/span><\/li>\n<li><span style=\"font-size: 14pt;\">COVID-19 presents the industry with unique challenges, the most pressing of which is the development of clinical trials.<\/span><\/li>\n<li><span style=\"font-size: 14pt;\">Enterprise innovation can both sustain operations during the pandemic and modernize, thus achieving long-term benefits.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-size: 14pt;\"><strong>Regulatory environment<\/strong><\/span><\/p>\n<ul>\n<li><span style=\"font-size: 14pt;\">Regulators act as consultants, authorising biopharmaceutical companies to make judgements about the conduct of clinical trials.<\/span><\/li>\n<li><span style=\"font-size: 14pt;\">They also have a range of tools to facilitate and accelerate research into treatments for COVID-19.<\/span><\/li>\n<li><span style=\"font-size: 14pt;\">The pace of development of COVID-19 raises questions about whether current research and development models are outdated or even detrimental.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-size: 14pt;\"><strong>Commercial significance<\/strong><\/span><\/p>\n<ul>\n<li><span style=\"font-size: 14pt;\">Despite the long-term uncertainty posed by the broader macroeconomic situation, valuations and earnings in the biopharmaceuticals industry are relatively well insulated from the specific threat of COVID-19.<\/span><\/li>\n<li><span style=\"font-size: 14pt;\">The emergence and consolidation of telemedicine will require adjustment and reprioritization in business practice.<\/span><\/li>\n<li><span style=\"font-size: 14pt;\">The industry must regain its credibility and prioritise long-term collective values over short-term individual epidemic gains.<\/span><\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Global Economic Outlook COVID-19 is tipping the global economy into a tailspin, wiping out years of market gains. The recession in 2020 is expected to be greater than the 2007-08 crisis: Global<a class=\"moretag\" href=\"https:\/\/sars-cov-2.creative-biolabs.com\/blog\/the-impact-of-covid-19-on-biopharmaceutical-rd-business-significance\/\">Read More&#8230;<\/a><\/p>\n","protected":false},"author":1,"featured_media":28,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"_links":{"self":[{"href":"https:\/\/sars-cov-2.creative-biolabs.com\/blog\/wp-json\/wp\/v2\/posts\/108"}],"collection":[{"href":"https:\/\/sars-cov-2.creative-biolabs.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/sars-cov-2.creative-biolabs.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/sars-cov-2.creative-biolabs.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/sars-cov-2.creative-biolabs.com\/blog\/wp-json\/wp\/v2\/comments?post=108"}],"version-history":[{"count":3,"href":"https:\/\/sars-cov-2.creative-biolabs.com\/blog\/wp-json\/wp\/v2\/posts\/108\/revisions"}],"predecessor-version":[{"id":115,"href":"https:\/\/sars-cov-2.creative-biolabs.com\/blog\/wp-json\/wp\/v2\/posts\/108\/revisions\/115"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/sars-cov-2.creative-biolabs.com\/blog\/wp-json\/wp\/v2\/media\/28"}],"wp:attachment":[{"href":"https:\/\/sars-cov-2.creative-biolabs.com\/blog\/wp-json\/wp\/v2\/media?parent=108"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/sars-cov-2.creative-biolabs.com\/blog\/wp-json\/wp\/v2\/categories?post=108"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/sars-cov-2.creative-biolabs.com\/blog\/wp-json\/wp\/v2\/tags?post=108"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}