Covid-19 has created a havoc all-round the globe. The present Covid-19 pandemic is considered to be World War III which has caused millions of death and led many to mental injuries. Every day, tensions among the citizens increase with the increase in the number of cases.
There is a lack of health equipment and doctors in most of the hospitals. It is an alarming situation where only vaccines could be a saviour for all.
This China-borne pandemic is having an adverse effect on the global economy and it is believed to face the Great Depression situation similar to that of 1920. The Indian economy has faced the same and is facing an economic slowdown.
The entire country was under a strict lockdown and there were no economic activities being carried on. Due to this, most of the sectors had negative impacts: Apparel & Textile facing disruption in labour supply, raw material unavailability, working capital constraints and restricted demand due to limited movement of people and purchasing ability; people would not prefer travelling thereby affecting aviation and tourism sector; many other sectors, like Shipping and Non-food retail, Automobile, Building and construction will continue to face challenges due to lack of demand, global recession and reduction in purchasing ability of an individual.
Though the Economy is facing all these threats, this pandemic has turned to be an opportunity for many sectors like Digital & Internet; Ed-tech and Online Education; FMCG; Chemical and Pharmaceuticals. Pharmaceuticals firms are set to grow in the near term. All over the world, many pharma companies are running in a race of developing vaccines for Coronavirus.
Every day, millions of people pray and wish that vaccine is developed as soon as possible so that they can turn their life as it was before.
Who will be the saviour for everyone and who would fulfil the wishes of numerous people was unanswerable until an Indian Company came up with an anti-virus drug previous week.
The company’s name is Glenmark, a pharmaceutical company headquartered in Mumbai, India, that was founded in 1977 by Gracias Saldanha as a generic drug and active pharmaceutical ingredient manufacturer.
The company from the beginning has focussed on new drugs, in the field of major death-causing diseases like cancer, respiratory disease, among others. They try to monetize by partnering with other major pharmaceutical companies.
Last week, Glenmark Pharma became the first Indian company to receive approval from the Drugs Controller General of India (DCGI) for the manufacture and marketing of Favipiravir, under the brand name FabiFlu for the treatment of mild-to-moderate symptoms of Covid-19.
What is the medication?
The medicine is available at Rs 103 a tablet and Rs 3,500 for the complete course of medication. The Favipiravir drug will be available as a 200 mg tablet for a strip of 34 tablets. It is moderately priced as compared with the competing drug Remdesivir.
Patients need to take about 18 tablets on day one and eight tablets thereafter for up to 13 days. As such, this makes the overall cost of the treatment quite high for most Indians. Of course, the government could step in as a buyer, which would further lower the margins on this drug.
What are its uses?
Glenmark’s anti-virus drug is advised for mild to moderate Covid-19 cases. It will help in recovering the condition of Corona patients in a few days. It offers a rapid reduction in viral load within four days and provides faster symptomatic and radiological improvement.
What will be the advantages for the company?
Glenmark will enjoy a first-mover advantage as it is the first company to get the approval. Moreover, if the drug becomes a success then it can be exported on a large quantity which will not only help the company to prosper but will also add to the GDP growth rate. With this, they can create a history thereby increasing their credibility in the market.
The launch of this anti-viral drug has the potential to be a game-changer for Glenmark. Reduction in debt is going to be the key confirmation for the company if it turns out to be a success.
After the breakout of this news, the share prices of the company rallied and reached its 52 Week High mark at ₹573.05, showing a positive sentiment of the market towards the company, so much so, that it led to the buying freeze while trading.
What will be the face of the economy?
Krishnamurthy V Subramanian, the chief economic adviser to the finance minister said that if it so happened that in the latter half of the year we had the vaccine, then one can anticipate V-shape recovery starting in the second half.
If Glenmark is successful, the Indian Economy will get a chance to boost up and grow since this will lead to a large number of exports and an increase in the level of production. Besides this, from a humanitarian point of view, the death rate will reduce and will help the people to get back to their work. The entire system which got stagnant due to the system would revive back again.
According to the analysts, they point out that Glenmark may face competition risk in the short run as Cipla will launch another COVID-19 treatment drug remdesivir while companies such as Hikal, Strides, SMS Pharma are also expected to launch similar drugs soon.