A number of CXO heads disclosed "eye-catching" report cards in the first three quarters, and the industry is prosperous

【Pharmaceutical Network Industry News】Recently, WuXi AppTec, Jiuzhou Pharmaceutical, Zhaoyan New Drug and other CXO head companies have successively released performance forecasts for the first three quarters of 2022, from the data point of view, although the stock prices of many companies have fallen sharply so far this year, the report cards handed over by these companies are relatively bright
overall 。 For example, on the evening of October 12, WuXi AppTec disclosed its forecast for the first three quarters of 2022, expecting to achieve operating income of 28.
395 billion yuan in the first three quarters of this year, a year-on-year increase of 71.
87%, and an expected net profit of 7.
38 billion yuan, a year-on-year increase of 107.
12%; It is expected that the non-net profit will be 6.
232 billion yuan, a year-on-year increase of 100.
64%.

According to the forecast for the first three quarters of 2022 released by Jiuzhou Pharmaceutical on October 16, the net profit attributable to the parent in the first three quarters is expected to be 733 million yuan to 757 million yuan, up 55.
00% to 60.
00% year-on-year; Non-net profit will increase by 306 million yuan to 328 million yuan, an increase of 70.
00% to 75.
00%
year-on-year.
Zhaoyan New Drug issued a performance forecast announcement on the evening of October 18, and it is expected to achieve a net profit attributable to the parent in the first three quarters of about 607 million to 657 million yuan, a year-on-year increase of about 144.
8% to 164.
8%; Non-net profit is expected to increase by 366 million to 410 million yuan over the same period of the previous year, an increase of about 168.
6% to 188.
6%
year-on-year.
From the perspective of the reasons for the expected increase in performance, WuXi AppTec said that it was mainly affected
by the company's main business and non-recurring profit and loss.
Zhaoyan New Drug said that the company continues to strengthen its support for the research and development of innovative drugs, and has won the trust
of innovative research and development enterprises.
In order to ensure the smooth delivery of orders in hand, the company further increased production capacity, and at the same time reasonably planned the project schedule, further improving the capacity utilization rate
.
In addition, the company continues to increase the scale of scientific research and technical team, which provides a strong guarantee
for business growth.
Kyushu Pharmaceutical said that it benefited from the rapid growth of the company's main business, and the reasons for business growth included the increase in the quality of CDMO business; Further accelerate the integration of APIs and preparations, and maintain a rapid growth momentum in the business; Continuously optimize the matrix management system oriented to project operation, and improve the efficiency of project delivery rapidly
.
With the further confirmation of leading enterprises, and the impact of the recent moderate price reduction of centralized procurement, financial interest discount on medical device loans, and the inclusion of innovative drugs in the simple renewal procedure of medical insurance, the stock price of the CXO sector ushered in an overall increase
.
From the perspective of the industry, there are high industry barriers in the CXO sector, China's advantages in the industrial chain are outstanding, the industry is expected to be in the golden development period in the next 5 years, and the head companies with risk aversion awareness are expected to embrace opportunities
.
At the same time, domestic innovative drugs are rising, bringing new demand increments to the industry, and the CXO industry is expected to continue to develop rapidly in
the future.
According to Frost & Sullivan, the global CRO industry market size in 2020 is 65.
3 billion US dollars, the CDMO industry market size is 42.
4 billion US dollars, and the CXO (CRO+CDMO) market size is expected to reach 194.
9 billion US dollars
in 2025.
In China, according to institutional forecasts, by 2025, the market size of China's pharmaceutical CXO industry will reach 244 billion US dollars, or about 1.
73 trillion yuan
.
At present, institutions including Southwest Securities, Shenwan Hongyuan, Kaiyuan Securities and other institutions have expressed optimism about the high prosperity of the CXO sector in the research report
.
Among them, Southwest Securities released a research report saying that the CXO sector is still a high-quality sector with both certainty and growth; At the same time, domestic innovative drugs have entered the harvest period, which further brings incremental space to the CXO sector, and it is expected that the performance of the CXO sector will maintain high growth and high
certainty.
Disclaimer: Under no circumstances does the information or opinions expressed in this article constitute investment advice
to anyone.