{"id":11449,"date":"2024-02-28T12:54:00","date_gmt":"2024-02-28T07:24:00","guid":{"rendered":"https:\/\/www.rootsanalysis.com\/blog\/?p=11449"},"modified":"2025-06-23T10:43:04","modified_gmt":"2025-06-23T05:13:04","slug":"covid-19-and-recession","status":"publish","type":"post","link":"https:\/\/www.rootsanalysis.com\/blog\/covid-19-and-recession\/","title":{"rendered":"COVID-19 and Recession: Identifying Long-Term Growth Opportunities"},"content":{"rendered":"\n

Well before the COVID-19 and Recession pandemic, there were warning signs of an imminent US recession. The ongoing pandemic, and trade conflicts between the US. and China, and the US and Europe have just accelerated the fall of the global economy. In fact, as per the United Nations<\/a>, the world economy is expected to go into recession this year with a predicted loss of trillions of dollars of global income. This is expected to create immense problems across developing countries with the likely exception of India and China.<\/p>\n\n\n\n

Is the Pharmaceutical Industry Recession-Proof?<\/h2>\n\n\n\n

In absolute terms, no industry was fully recession-proof during the Great Recession<\/em>. However, some of the pharma companies fared relatively well. Especially big Pharma players, such as Amgen, Pfizer, and BMS demonstrated high single-digit growth in sales during the recession. Although, the high sales performance must not take the focus away from some of the strict strategies adopted by the big pharma companies. For example, 15 big pharma companies together laid off a total of over 71,000 employees during the great recession. <\/p>\n\n\n\n

\"Big<\/figure>\n\n\n\n

In this article, we will be discussing the novel strategies that pharma players can adopt to walk away unscathed from the ongoing crisis.<\/p>\n\n\n\n

COVID-19 and Recession Readiness Preparedness Framework<\/h2>\n\n\n\n

In order to help the pharma companies to check their preparedness for the recession, Roots Analysis has put together a 2X2 framework. This framework evaluates the companies on financial leadership vs strategic leadership <\/em>matrix. <\/p>\n\n\n\n

\"Recession<\/figure>\n\n\n\n

There are different strategies that companies can adopt depending on their position on the above-mentioned framework. We have identified different strategies for different types of companies:<\/p>\n\n\n\n

Transformers:<\/strong><\/h4>\n\n\n\n