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COVID-19 Market Impact Assessment
Dental
Published on: 20 April 2020
Last updated on: 17th 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 | Many dental companies have forecasted strong revenue loss over 1 to 1.5 quarters (depending on the region) in 2020. |
| Procedure Volumes | Strong | Moderate | Most dental markets are elective and physician associations/regulatory bodies have asked physicians 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 Travel restrictions will impact medical tourism significantly |
| ASP | Moderate | Moderate | Companies in this space are offering discounted pricing on various dental products to support the reopening of dental practices and to encourage device purchases |
| New Product Launches | Moderate | Moderate | Delays have been observed in the launch of some products in China in Q1 and in the US and Europe in Q2 2020. Implementation of the EU MDR is postponed by one year |
| Clinical Trials | Strong | Moderate | Monitoring will continue in most clinical trials through phone or video consultations; however, new treatment will be limited/postponed, affecting analysis and timelines |
| Supply Chain | Weak | Strong | Little disruption is being seen in the supply chain, especially for MNCs, and because of low manufacturing complexity. In cases of disruptions, recovery within 1.5 quarters is expected |
*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 dental industry. With a number of countries issuing orders to residents to shelter in place to limit potential exposure to infection, dental treatments that are not absolutely necessary will be postponed or cancelled. The American Dental Association, for example, has recommended dentists only perform emergency dental procedures during the pandemic.
- Widespread job losses and ongoing economic uncertainty will cause many people to avoid out-of-pocket health care costs, such as those associated with dental treatments.
- The initial rebound in procedure volumes has been modest. Even though the lifting of social distancing measures has been done gradually, currently available data suggest that consumer attitudes have been largely positive. For example, survey results from the ADA suggest that 53% of pre-COVID-19 patient volumes had been recovered by the first week of June.
Companies
- Many dental companies have forecasted strong revenue loss over 1 to 1.5 quarters (depending on the region) in 2020. This is a result of lower-than-expected sales in the Equipment & Instruments reporting unit due to the ongoing COVID-19 impact on
- Reported net sales across the dental space declined by 7.6% in the Q1 2020, while organic sales declined by 4.3%
- Some dental companies, such as Argen, are manufacturing testing swabs and PPE to help address supply shortages
- Many companies are utilizing digital tools to support their customers:
- For example, Argen, Glidewell, Dentsply Sirona, and Straumann are all maintaining phone and online customer experience teams and providing free webinars and training content to dentists.
Clinical Trials
- Monitoring will continue in most clinical trials through phone or video consultations; however, new treatment will be limited/postponed, affecting analysis and timelines.
Supply Chain
- Little disruption is being seen in the supply chain, especially for international companies. In cases where there is some disruption, recovery with 1 to 1.5 quarters is expected in most cases because of low manufacturing complexity.
Guidelines/Recommendations Links
- ADA Guidelines on Dental Procedures
- COVID-19 State Mandates and Recommendations in US
- IDA Advisory on Dental Procedures
- (NHS) Redeploying the Clinical Dental Workforce to Support the NHS Clinical Delivery Plan for COVID-19
- ADA (Australia) DENTAL SERVICE RESTRICTIONS IN COVID-19
- What Constitutes a Dental Emergency?
- ADA Offers Interim Guidance As Some States Consider Reopening
