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COVID-19 Market Impact Assessment
Aesthetics
Published on: 20 April 2020
Last updated on: 17 July 2020
DRG’s Medtech Insights (Part of Clarivate) is actively assessing the impact of COVID-19 on all therapy areas and incorporating the impact into reports. This piece contains some therapy-specific highlights based on currently available information.
Impact Assessment Summary
| Factors | Initial Effect | Expected 1yr Recovery | Comments |
|---|---|---|---|
| Company Sales/Revenue | Strong | Moderate | Nearly all aesthetic procedures will be delayed or cancelled, strongly impacting company revenues Some MNCs have extended the payment terms for aesthetic offices to ensure stable cash flows. |
| Procedure Volumes | Strong | Moderate | Most aesthetics markets are elective and initial guidance from physician associations/regulatory bodies was to postpone elective procedures; however, as earlier restrictions are now easing in a number of countries (or certain states, provinces, and cities), some procedures will be resumed |
| ASPs | Strong | Moderate | For most elective procedures and products, the initial commentary from KOLs and industry sources has been that discounted pricing will be used to draw customers back to these procedures once the pandemic eases |
| New Product Launches | Moderate | Moderate | The launch of injectable products will be delayed in China because the CFDA was closed for some of Q1 2020. Similar delays will be seen in the US and Europe in Q2 2020; implementation of the EU MDR is postponed by one year. |
| Clinical Trials | Moderate | Moderate | Ongoing trials will proceed but will face delays in cases where patients must be present in person. |
| Supply Chain | Weak | Strong | Production delays are expected in some regions in the short term |
*General guidance: Weak: 0-10% change in values/timelines; Moderate: 10-20% change in values/timelines; Strong: >20% change in values/timelines. DRG Medtech is developing a robust quantitative framework for our market forecasts; impact metrics shown here may change in the future to align with those used in the quantitative framework.
Detailed Impact Information
Procedure Volumes and Unit Sales
- In the immediate term, the pandemic will severely hamper the aesthetics industry. With a number of national and regional governments issuing orders to residents to shelter in place to limit potential exposure to and transmission of infection, most aesthetic procedures that are not absolutely necessary are being postponed or cancelled. Now that some countries (or states, cities, and provinces) have begun easing some restrictions, some aesthetics procedures will be gradually resumed.
- The economic impact of COVID-19 will also restrict the number of individual seeking treatments. Job losses and uncertainty surrounding job security will cause many people to avoid out-of-pocket health care cost.
- In markets like aesthetic injectables, however, the need for repeat treatments to maintain aesthetic effects will encourage most patients to resume their treatment schedules within a month or two of the situations subsiding, leading to relatively fast market recovery.
Companies
- Companies in this space will face the strong negative impact of deferred procedures.
- Revance Therapeutics is reconsidering the launch of its injectable in the US, which was set for the end of this year
- Postponement of interaction between device manufacturers and regulatory bodies will defer approvals; for example, the CFDA suspended overseas device and drug inspections through most of the first quarter of 2020
- Companies in the aesthetics space are looking to serve patients using virtual platforms. For example, Evolus will maintain customer experience teams, including both sales and healthcare providers, during normal working hours through their mobile application or by phone.
- To help practices manage their finances better, companies are offering practitioners provisions such as extension on payment terms, replacement for expired products, and discounts on complementary skincare products to support patient engagement and prepare practices for a robust recovery.
Clinical Trials
- Monitoring will continue in most clinical trials through phone or video consultations; however new dosing will be limited/postponed, affecting analysis and timelines
- For example, Phase-2 open-label studies in forehead lines, crow’s feet, and upper facial lines for Revance Therapeutics’ DAXI are underway. Considering dosing has been completed for all these trials, the company is monitoring all the trials remotely n accordance with FDA guidelines.
Supply Chain
- Most companies with global operations, including Allergan, will maintain strong product supplies. However, companies with manufacturing only in Europe, such as TEOXANE, will be negatively impacted by closures. However, recovery is expected in one to two quarters in most cases because of low product manufacturing complexity.
- Furthermore, with the expansion of the pandemic worldwide, companies in the aesthetic capital equipment market, such as InMode, which were earlier able to source their components temporarily from Europe while China was under lockdown will now find it even more difficult to manufacture their devices until China gains back its full manufacturing capacity.
Guidelines/Recommendations Links
- ACS Guidelines for Breast Cancer
- Outlines characteristics for classifying patient cases into priority A, B, or C
- Priority A: urgent; proceed with procedure
- Priority B: noncritical, but delays beyond 6-8 could impact outcome
- Priority C: noncritical, delay for as long as needed
- Outlines characteristics for classifying patient cases into priority A, B, or C
- Canadian Society of Breast Imaging and Canadian Association of Radiologists
- Position statement recommending the delay of screening mammography, ultrasound, and breast MRI for 6 to 8 weeks when possible
- American Society of Plastic Surgeons
- Recommendation for the immediate suspension of all nonessential procedures, regardless of procedure setting
- International Society of Aesthetic Plastic Surgery
- Recommendation for the immediate suspension of all nonessential procedures and minimal use of essential materials
- Australian Society of Plastic Surgeons
- Provides guidance for surgeons and safety considerations for procedures that cannot be delayed
