The World Health Organization announced on May 5 that Covid-19 is no longer a global emergency. Many medical companies that have made billions off the pandemic through tests and pharmaceuticals are forced to divest resources into other projects. Many in vitro diagnostics companies are trying to reuse research and development findings to apply them to different infectious diseases.
In January 2023, companies involved in Covid-19 tests such as Danaher, Abbott, Labcorp, and BD, made statements regarding the significant drops in Covid-19 test sales in the first two quarters of 2023. Now that the pandemic has been announced to no longer be an emergency, the drops will become more significant in the coming months. Additionally, governments in countries such as Canada and the US will stop providing free Covid-19 tests this year. This shift will result in a massive drop in sales, particularly in the consumer-available Covid-19 tests.
Covid-19 test sales may pick up this year due to a spike in cases of respiratory disease, but due to the change in Covid-19’s status as a global emergency, it is unlikely that governments will fully fund consumer available Covid-19 tests again in the future.
Since the bulk of IVD revenue in the last few years was due to Covid-19 tests during the pandemic, we will see an overall drop in the overall IVD market as Covid-19 test sales continue to drop.