How fragrant is the pharmaceutical special equipment field that CDMO giants have also deployed?

Since 2020, many pharmaceutical companies, including Harbin Pharmaceutical Group and Kunming Pharmaceutical Group, have added content related to pharmaceutical machinery and equipment
.
And just recently, the domestic CDMO giant Kailaiying has also newly invested in a company with a business scope covering special pharmaceutical equipment
.
How fragrant is the pharmaceutical special equipment field that CDMO giants have also deployed? (Image source: Pharmaceutical Network) On December 14th, Kailaiying Pharmaceutical Group (Tianjin) Co.
, Ltd.
(hereinafter referred to as "Kailaiying") announced a new Increasing foreign investment, the newly-increased investment company is Tianjin Kaixiang Pharmaceutical Technology Co.
, Ltd.
, which was established on December 10, 2021, and its business scope includes sales of special pharmaceutical equipment; sales of instruments and meters; sales of metal products; sales of special equipment; experimental analysis equipment sales
.
The company is 100% controlled by Kailaiying
.
Kailaiying is a technology-driven CDMO (customized development and production in the field of medicine) company, which mainly provides comprehensive solutions throughout the entire process of drug development and production
.
According to Frost & Sullivan data, in terms of revenue in 2020, Calais is now the world's fifth largest innovative drug API CDMO company, occupying approximately 1.
5% of the global market, and it is also a domestic commercialized chemical drug CDMO.
A giant company that owns about 22% of the Chinese market
.
Such a large CDMO giant has newly invested in companies operating special pharmaceutical equipment, which shows that the company is optimistic about the field of pharmaceutical special equipment
.
So, how fragrant is the field of pharmaceutical special equipment? From the demand side, the pharmaceutical special equipment is the upstream of the pharmaceutical manufacturing industry.
In recent years, the demand for pharmaceutical special equipment has continued to grow in the context of increasing aging, consumption upgrades, and continuous growth in demand for medicine
.
At the same time, the domestic pharmaceutical industry is undergoing continuous transformation and upgrading under the influence of centralized procurement, consistency evaluation, and medical insurance control fees.
The requirements for equipment are also constantly increasing, requiring more efficient production, helping pharmaceutical companies to reduce costs, and thus bringing benefits to the equipment industry.
More room for growth
.
Many securities professionals also pointed out that the current domestic biopharmaceutical industry has ushered in rapid development.
Under this background, the demand for high-end pharmaceutical products from biopharmaceutical manufacturers may continue to grow.
It is expected that the industry still has a large room for growth in the future.

.
Statistics show that the current domestic pharmaceutical market size is about 100 billion yuan, and it is expected to reach 200 billion yuan by 2025
.
The previous research report issued by Industrial Securities also mentioned that with the recovery of the upstream pharmaceutical industry, China's pharmaceutical equipment market is expected to reach US$4.
58 billion in 2025, with a compound growth rate of 8.
1%
.
From a policy perspective, the relevant state departments have continuously expanded their support for pharmaceutical equipment, encouraged and supported the development of high-end pharmaceutical equipment, and narrowed the gap with imported equipment
.
For example, the 14th Five-Year Plan and the 2035 long-term goal recommendations mentioned that a number of major scientific and technological projects should be deployed in key areas and key links such as high-end pharmaceutical equipment, and strive to overcome a number of key core technologies and "stuck neck" technologies.
, To accelerate the localization of key parts and components
.
At the same time, in terms of R&D investment, relevant departments have also continuously increased their R&D investment in high-tech manufacturing and equipment manufacturing
.
Statistics show that in 2019, the country invested 2214.
36 billion yuan in research and experimental development (R&D), an increase of 246.
57 billion yuan or 12.
5% ​​over 2018
.
In addition, the current average export ratio of domestic pharmaceutical special equipment manufacturing is still relatively low.
According to data, the average export ratio of domestic pharmaceutical special equipment manufacturing since 2018 is only This is 9%.
As domestic pharmaceutical machinery companies continue to increase R&D investment and their strengths continue to increase, domestically-made equipment will continue to go global while meeting the domestic market, and the proportion of exports is also expected to be further increased
.
What needs to be noticed is that pharmaceutical equipment belongs to an industry with a high technical threshold.
At present, the domestic pharmaceutical machinery market is mainly dominated by small and medium-sized enterprises, and the market concentration is not high.
The representative enterprises are mainly Chutian Technology and Dongfulong.
Mainly, and most of the high-end markets are still monopolized by imported manufacturers, lacking strong domestic competitors
.
Therefore, it takes time to tell the answer to how much it can share in the cross-border deployment of pharmaceutical equipment
.