Pharmaceuticals, growth rate to be cut in half

IQVIA analyzes industry impact, pharmacy customers reduced by 23%

Sales of masks, etc. increased… Most of the remaining items are sluggish

Major National Pharmacy Sales Trend [Source: IQVIA]

It was analyzed that the domestic pharmaceutical industry would be suffered hard from the aftermath of COVID-19.

 

Drug market research firm IQVIA predicted that the growth of the Korean pharmaceutical market this year will be only 4.4%, half of the previous year due to the spread of COVID-19.

 

This analysis compared changes found in major institutions and organizations in healthcare, including pharmaceutical companies, hospitals, pharmacies, and drug wholesalers, before and after the outbreak of COVID-19.

 

Initially, IQVIA estimated the growth rate of the pharmaceutical market to be similar to 8.6% in 2019, but the situation changed due to the spread of COVID-19.

 

According to IQVIA, the number of outpatient prescriptions may decrease as the number of patients visiting the hospital decreases in the aftermath of COVID-19, which in turn may reduce drug production and sales.

 

Since the spread of COVID-19, the number of patients visiting hospitals and pharmacies in Daegu and Gyeongbuk areas has decreased significantly.

 

Looking at each region, Daegu and Gyeongbuk accounted for about 85% of all COVID-19 confirmed patients, and the proportion of deaths was more than 90%, so the short-term impact in the region was the largest.

 

It is estimated that the impact of COVID-19 on Daegu and Gyeongbuk sales will be 1.25 times greater than that of other regions, and as a result, it is expected that the usage of medicines in Daegu and Gyeongbuk in the first half of this year will likely be less than last year's level.

 

Changes in over-the-counter drug sales [Source: IQVIA]

In addition, as a result of questioning 300 pharmacists, the number of patients visiting pharmacies decreased by 23% compared to before the COVID-19 spread.

 

Sales of 11 major drug wholesalers also fell by an average of 13%.

 

Drug wholesale sales fell 8% less and 30% more.

 

However, with the spread of COVID-19, sales of various hygiene products such as masks and hand sanitizers increased.

 

As a result of analyzing the sales of 540 domestic pharmacies, the sales volume and proportion of masks and hand sanitizers began to increase on January 20, when the first COVID-19 confirmed in Korea.

 

The sales volume of hygiene products, which had been faltering for a moment due to the lack of masks and the increase in the number of confirmed patients, has jumped since February 18, when the 31st confirmed patient occurred.

 

This trend was prominent in pharmacies in Daegu.

 

Masks and hand sanitizers accounted for less than 1% of the total sales of pharmacies in Daegu, but increased to 30% at the end of last month.

 

It was analyzed that sales portion was expanded since the 18th of last month when the first COVID-19 confirmed patient occurred in Sincheonji Daegu Church.

 

IQVIA said that sales of over-the-counter drugs at pharmacies, except for outpatient prescriptions, have decreased significantly since the occurrence of COVID-19, and sales of all products across all over-the-counter drugs, not specific products, have been analyzed to be attributed to a decrease in overall patient visits.