Biomedicine has great potential, and pharmaceutical equipment companies have made a big layout

【Pharmaceutical Network Industry News】On October 17, Dongfulong issued an announcement that the company's proposed increase in capital of no more than 3.
2 billion yuan was approved, and the funds raised this time were mainly used to increase the production capacity of biopharmaceutical equipment and replenish working capital
after deducting the issuance expenses.
As a leading enterprise of domestic pharmaceutical equipment, Dongfulong is looking at the huge potential
of the biomedical market behind its large-scale increase in fundraising.
Biomedicine has great potential, pharmaceutical equipment companies are aggressively deployed (Image source: Pharma.
com) Biomedicine is a strategic industry related to the national economy and people's livelihood, economic development and national security, in recent years by a series of favorable support such as the "Healthy China" grand strategy, coupled with the aging of the population, the continuous upgrading of consumption, the entire market scale continues to expand
.
According to the Frost & Sullivan report, the market size of China's biomedical industry has increased from 183.
6 billion yuan in 2016 to 345.
7 billion yuan in 2020, with a compound annual growth rate of 17.
14%.

According to other data, the market size of China's biomedical industry is expected to exceed 4 trillion yuan
by 2023.
Under the background of the rapid development of the biomedical industry, the upstream pharmaceutical equipment industry has also ushered in development opportunities, and the performance of leading enterprises has increased significantly
.
The 2021 annual report shows that Dongfulong achieved year-on-year growth
in revenue and net profit attributable to the parent.
Among them, the revenue of "bioengineering stand-alone machines and systems" related to new crown vaccine equipment (original liquid end) increased by 305.
15%
year-on-year.
In the first half of 2022, the company's performance still maintained a growth trend, of which bioengineering and consumables entered the ramp-up stage, and contract liabilities reached 3.
9 billion yuan in the first half of the year, a year-on-year increase of 41%.

At the same time, the import substitution of biopharmaceutical equipment brought about by the epidemic has appeared, and domestic pharmaceutical machines have accelerated the transformation and breakthrough
from low-end to high-end.
Dongfulong once predicted in the registration draft of the 3.
2 billion yuan fixed increase project that "in the future, more and more domestic pharmaceutical equipment manufacturers will further strengthen independent research and development, cut into the pharmaceutical industry chain in multiple links, and achieve import substitution in all directions and fields"
.
In the context of the continuous prosperity of the industry and the acceleration of the import substitution process, leading enterprises actively embrace opportunities, but while obtaining new orders, they are also facing the challenge of capacity expansion, and Dongfulong may help expand production capacity to meet the rapidly growing downstream market demand
.
In addition to Dongfulong, Chutian Technology, Canaan Technology, etc.
are also gradually implementing the strategic layout of the biological sector according to the strategic layout, showing confidence
in the future development of the biological sector 。 For example, Chutian Technology announced in July this year that in order to seize the opportunities of change and development of the national biomedical industry, the company intends to invest 100 million yuan in cash and other professional investment institutions to set up Changsha Biomedicine and Life Science No.
1 Private Equity Fund, which mainly invests in upstream and downstream related industries of the biomedicine and life science industry chain (including but not limited to biomedicine, medical equipment and core parts supply chain, medical equipment and consumables, medical services and general health, etc.
).

Canaan Technology has also continued to increase its investment
in the biomedical industry in recent years.
At the end of April this year, Canaan Technology announced the establishment of a wholly-owned subsidiary Tianjin Canaan with its own funds of 50 million yuan, as an important part
of extending the biopharmaceutical equipment industry chain.
On September 21, Canaan Technology announced another auction of industrial land, Tianjin Canaan intends to participate in the auction of a piece of industrial land use right located in Tianjin for no more than 27 million yuan, the land use right is mainly used as biopharmaceutical system equipment industrialization projects or future new project reserve land, which is of great strategic significance
for the company to improve and strengthen the layout of biopharmaceutical equipment.
Disclaimer: Under no circumstances does the information or opinions expressed in this article constitute investment advice
to anyone.