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Business Economy


MedTech industry suffers up to 85 pc fall in revenue during Apr-Jun 2020

Kolkata, Aug 5 (UNI) Medical technology industry has suffered a 50-85 per cent drop
in revenue in April-June period due to numerous financial and operational challenges
across the country in the wake of COVID-19 pandemic, an account given by Medical
Technology Association of India (MTaI) shows.
MTaI represents leading research-based medical technology companies that have
a large footprint in manufacturing, R&D and healthcare worker training in India.
Since March 2020, as India started recording surge in COVID19 infections, elective
procedures have been postponed as advised by the Prime Minister himself in the first
lockdown speech.
Elective surgeries drive a large part of the demand for medical devices and the
postponement has severely impacted the revenue streams of the medtech industry.
The estimated revenue downfall in the cardiology category was up to 60% in the
first quarter of the financial year.
The orthopaedic industry devices encountered an even bigger fall in revenue to
an extent of up to 85%.
The opthalmology sector also recorded a similar impact as its revenue fell up to
75% of during April-June, 2020. Even the critical care device segment fell to nearly
half.
COVID-19 has accentuated the problems of the sector that was already reeling
with the impact of price control.
The pandemic disrupted the global supply chains, while the cost of freight movement
increased by 5-7 folds.
These challenges have been further compounded by the falling INR value, high basic
customs duty rate and the health cess on imported medical devices which has been
imposed since February 2020.
Due to the shrinking margins of the hospitals, the channel and service dealership
networks, and sub-dealers are already experiencing significant workforce downsizing.
So far the global medtech fraternity have heeded to the government’s request of
protecting the jobs of its workforce, even while facing significant financial blows.
However if the situation does not improve, these efforts may not be sustainable.
“In the absence of a vaccine or a reliable therapeutic remedy, medical devices are
currently shouldering the fight against COVID19. We hope that the government stays
cognizant of the unprecedented challenges that the medtech industry is facing in India
and we request its immediate intervention to help the sector recover so that it can
continue fulfilling its role in ensuring critical care services in the country,” Pavan
Choudary, Chairman and Director General of MTaI, says.
UNI XC BM
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