The rapid spread of the novel coronavirus in China and beyond would have mixed credit implications on healthcare companies in the USA. While the global pandemic could adversely affect medical device and pharmaceutical companies as well as personal protective equipment manufacturers that produce or source medical products in China, it could also ultimately lead to the increase in demand for hospital services, medical products and devices, and certain drugs.
As one of the leading PPE suppliers in the USA, Co-Defend endeavors to meet the increased demand for PPE and other essential medical products to help healthcare systems and medical staff to overcome the challenges faced while treating COVID+ patients.
What’s the Impact on Healthcare Companies in the USA?
China is the central market for the innovative treatments of the makers of branded pharmaceuticals in the USA, although most don’t source materials in China.
As the Chinese economy slows or healthcare resources get diverted to the coronavirus, growth in other pharmaceutical categories could also decelerate. However, some manufacturers of branded drugs are testing medications to treat the deadly virus, which, if effective could provide some positive results.
On the other hand, many manufacturers in the USA of generic drugs do source ingredients in China, and supply could be significantly decreased if manufacturing facilities are affected. As the virus is spreading like fire, pharmaceutical manufacturing hubs as well as PPE suppliers in medical industry will be under the immense pressure of producing drugs, medical products, PPE for the healthcare facilities. And the shortage of these products can also lead to the rise in the pricing of certain drugs and medical products as demand outstrips supply. Healthcare systems would likely need to supplement medical staff with expensive contract labor and cancel more profitable procedures such as orthopedic surgeries.
Many USA-based medical device manufacturers are depending on China for raw materials or components such as memory chips. If the outbreak of COVID-19 isn’t contained quickly, shortages of such items could lead to supply chain disruptions if the demand begins to spike. The medical device and personal protective equipment manufacturers will face difficulty in meeting the growing demands for PPE and medical supplies.
Challenges Faced by Medical Device Companies
While many companies have unfortunately witnessed a downturn in demand, such as Orthopaedics following the cancellation of more profitable, elective surgeries, and contact lens manufacturers as opticians close for non-essential treatment, many companies have adapted their operations to support the fight against the novel coronavirus.
Testing and detecting equipment manufacturers are now focusing on developing detection and testing equipment for COVID-19. Besides, surgical equipment manufacturing companies have also witnessed demand increase as NHS trusts and Central Governments try and secure an adequate supply of medical products.
However, medical device and personal protective equipment manufacturers that are able to continue production have faced two common hurdles:
- A limited supply of raw materials
Although the employees of medical device and PPE manufacturing businesses are designated as key workers and companies are continuing to manufacture as normal, many suppliers do not share the same designation. Some businesses have even expressed concerns that unless they can secure more raw materials, they’ll find it difficult to continue the production.
- Impact of social distancing on the production
The PPE and medical device businesses need to ensure that their staff maintains social distancing while working at the workplace. Staff members are concerned about their health safety while working in close proximity to others as they have family members designated as vulnerable. Other business functions, such as Engineering have struggled to complete a planned task because of the impossibility of maintaining social distancing while doing their job.
How Co-Defend Can Help in the Fight against COVID-19?
Co-Defend understands that these are the toughest and unprecedented times for medical device and PPE suppliers in the USA. We know situations are difficult and endeavor to support our clients throughout this adverse situation.
We have built a strong network of the most trusted medical device and PPE suppliers in Asia that can help to ensure there’s an adequate supply of PPE and medical devices. Being one of the most trusted PPE suppliers in medical industry, we constantly strive to optimize the supply-chain to avoid any kind of disruption in the supply of medical products to healthcare systems in the USA and worldwide. Please get in touch with us if you need to place bulk orders for PPEs and other medical supplies.