Kanglong Chemical's performance has "greatly changed", and the domestic CXO industry may enter a bottleneck period of development

On the evening of July 17, Kanglong Chemical disclosed that the company's estimated revenue in the first half of the year was 567 billion - 665 billion yuan, a year-on-year increase of 39% - 42%; the estimated net profit was 565 million - 610 million yuan, a year-on-year increase of only 0% -

This is far less than Pharmaron's net profit growth over the past two yea.

This is far less than Pharmaron's net profit growth over the past two yea.

H-share stock price changes in the past month

From: Google Finance

Not only that, affected by market sentiment, the CRO sector collectively fe.

Thanks to overseas industrial transfer + domestic innovative drug dividends, CXO's performance has continued to rise for many years

Thanks to overseas industrial transfer + domestic innovative drug dividends, CXO's performance has continued to rise for many years

Pharmaceutical outsourcing (CXO) refers to the outsourcing of pharmaceutical R&D, production, sales and other links by pharmaceutical companies to specialized companies for operati.

Generally speaking, it takes an average of 10 to 15 years and hundreds of millions of dollars for a new drug product of a pharmaceutical company to go from laboratory discovery to research and developme.

Kanglong Chemical was established in 200 It started from laboratory chemistry and gradually built a global integrated service platform for R&D and producti.

It is worth mentioning that the year before the establishment of Pharmaron, the "Good Management Practice for Drug Clinical Trials" was released, which legally recognized the status and space of CRO companies in Chi.

In the past few years, the transfer of overseas orders and the strong domestic demand for innovative drug research and development have driven China's CXO industry to grow faster than the global mark.

In the past few years, the transfer of overseas orders and the strong domestic demand for innovative drug research and development have driven China's CXO industry to grow faster than the global mark.

First look at industrial transf.

Let’s look at the dividends of domestic innovative dru.

In addition, institutional innovation has also released new deman.

With the advancement of domestic pharmaceutical companies' innovative drug research and development process, domestic innovative drug orders have gradually released orders for the domestic CXO industry, which has also promoted the rapid development of CXO compani.

In short, the transfer of overseas industries and the dividends of domestic innovative drugs have made the CXO industry always known as the investment logic of "high prosperity + high certainty + high growth", and it is sought after by capit.

The dividend of domestic innovative drugs gradually recedes, and the CXO industry is in trouble

The dividend of domestic innovative drugs gradually recedes, and the CXO industry is in trouble

However, there is no lasting feast in the wor.

However, there is no lasting feast in the wor.

As soon as the policy came out, the CXO industry began to perform in a downturn, and the entire pharmaceutical sector fell sharp.

In addition, with more and more listed companies, investors are paying more and more attention to the follow-up commercialization, and the era of random harvesting of innovative drugs is coming to an e.

This will inevitably affect the enthusiasm of capital in the primary market, and even the entire "innovation environment" will eventually be transmitted to CXO compani.

For the 2022 semi-annual report performance growth rate will be reduced to single-digit growth, Pharmaron listed three reasons:

First, in the first half of 2022, overseas operating costs will increase due to the impact of inflation in Europe and the United States, and overseas operating entities will delay the company's overall profit growth to a certain extent;

Second, since the second half of 2021, the company has begun to integrate the group’s clinical R&D service capabilities and invest in advance in terms of personn.

In addition, the epidemic in the first half of 2022 will have a certain impact on domestic clinical R&D services, and clinical R&D services will delay the company’s overall development to a certain exte.

profit growth;

Third, in the first half of 2022, under the influence of the international macro environment, the income of some low- and medium-risk bank wealth management products with guaranteed capital and floating income dropped significantly, which also had an adverse impact on the company's net prof.

For patient recruitment, CXO encounters "barbarians" knocking on the door

For patient recruitment, CXO encounters "barbarians" knocking on the door

Recently, Shuidichou, which has mastered the group of seriously ill patients, and some Internet platforms serving the group of doctors have begun to cut into the CRO service field of medium and light assets in the CXO industry, which has aroused widespread attention in the pharmaceutical and capital marke.

Clinical CROs charge by service item, and the key to their profitability is the number of patients recruit.

Therefore, Shuidichou, which precisely serves the seriously ill patient group, has a natural advantage in this rega.

In the financial report for the first quarter of 2022, Shuidichou announced the progress of its patient recruitment business platform "Effective Medicine" for the first ti.

According to the first quarterly report, Waterdrop has successfully recruited more than 500 patients for clinical trials within 3 months, and has established cooperation with pharmaceutical companies such as Chia Tai Tianqing, CSPC and other CRO institutions, adding more than 50 registered new drug clinical tria.

Experimenting with collaborative projects, it seems to be going we.

Clinical CROs charge by service item, and the key to their profitability is the number of patients recruit.

In addition to Shuidichou, some Internet platforms focusing on doctor communication have also begun to set foot in the CRO fie.

However, clinical CRO is actually an industry that requires a lot of human inp.

The management of doctors, patients, and drugs is a very systematic and standardized wo.

This work requires strong professionalism and complian.

It remains to be seen how much the Internet platform can set off in the CRO mark.

But it is undeniable that there may be more and more Internet platforms with corresponding resources in the future, making clinical CRO a new growth engi.

At present, for the domestic CXO industry, even though the logic of industrial transfer is still there, it has gradually lost the dividends of domestic innovative drugs, and has to face the knock on the door from the Internet cross-border barbaria.

Under the internal and external troubles, the CXO industry seems to enter the mark.

In the bottleneck period after rapid development, where is the next growth curve in the future, this is a problem that every CXO company needs to solve urgent.

At present, for the domestic CXO industry, even though the logic of industrial transfer is still there, it has gradually lost the dividends of domestic innovative drugs, and has to face the knock on the door from the Internet cross-border barbaria.

Under the internal and external troubles, the CXO industry seems to enter the mark.

In the bottleneck period after rapid development, where is the next growth curve in the future, this is a problem that every CXO company needs to solve urgent.

Reference: Pharmaron Chemicals 2022 H1 Performance Report

Reference: Pharmaron Chemicals 2022 H1 Performance Report