Research and development spending grows rapidly, and the global pharmaceutical outsourcing industry chain begins to shift to China

Pharmaceutical Network Market Analysis: Drug research and development innovation is the core theme of pharmaceutical enterprises and the fundamental guarantee of sustained vitalityIt is understood that in recent years, with the rapid growth of research and development expenditure of pharmaceutical enterprises, as well as the improvement of the domestic policy environment and natural cost advantages, for the development of CRO enterprises laid the foundation, and now the global pharmaceutical outsourcing industry chain has also begun to shift to ChinaThe pharmaceutical outsourcing industry chain began to shift to China (Photo: Pharmaceutical Network) data show that in 2014-2018, China's pharmaceutical research and development investment growth rate of 16.9%, far higher than the global 5.3%, and show edging tendencyChina's listed pharmaceutical companies research and development expenditure is more than 30% per year growth rate, from the industry as a whole, pharmaceutical companies accounted for less than 10% of income, 20% from the developed countries, but showed a trend of increasing year by year
The continuous research and development investment of pharmaceutical companies has laid the foundation for the development of CRO enterprises, while pharmaceutical companies face the situation of continuous lying in research and development costs, declining returns, the urgent need to reduce the cost of efficiency, and the focus of research and development is tilted towards tumor drugs, rare disease drugs, etc., the increasing need for CRO-specific research support, these factors have strongly promoted the development of the CRO industry
Industry said that China from consistency evaluation to innovative drug research and development, the CRO enterprise's technical capabilities to improveIn this process of transformation, enterprises with higher service levels and better quality systems may benefit firstIt is reported that the domestic CRO industry since 2016 began to be on the right track, in the rapid development stage, such as including the drug Mingkangde, Zhaoyan new drugs, Kanghua Longcheng and other related companies have a greater investment value
It is understood that China since the introduction of the 2018 band procurement policy, generic drug prices dropped significantly, profits greatly compressed, pharmaceutical companies had to cut the consistency evaluation of the project, to innovative drugs transformation; At the same time, the global pharmaceutical outsourcing industry chain also took the opportunity to start to transfer to China
In recent years, the number of clinical trials carried out by foreign pharmaceutical companies in China has been increasing, promoting the growth of domestic demand for clinical CRO servicesPatient recruitment, data management and other businesses can not be offsparated due to geographical constraintsIn this field, acquisition and acquisition is the main way for domestic CRO enterprises to carry out clinical CRO layout abroadAnd in the production outsourcing, with the continuous improvement of domestic CMO/CDMO enterprise technology level, as well as with the international cooperation between large pharmaceutical companies, domestic CMO/CDMO enterprises gradually become more and more big pharma preferred suppliers or long-term strategic partners
Today, CRO's services for global research and development have evolved from basic support services to integrated services such as multi-type clinical, central laboratory and analytical services to meet the many needs of the market during drug discovery and development, and revenue range is greatly expanded, with the data projected to reach $95.2 billion in the CRO market in 2023 and CAGR 10.5% in 2019-2023, increasing penetration to 44% for sustained and rapid growth
The industry says that as drug development costs rise, returns decline and clinical trial requirements become more complex, pharmaceutical companies and CRO partners are deepening, gradually forming a strategic partnership model, through strategic partnerships, CRO companies can meet the end-to-end business needs of pharmaceutical companiesAgainst this backdrop, CRO companies are gradually expanding their business reach through vertical integration of mergers and acquisitions, as well as increasing global geographic coverage through horizontal mergers and acquisitions And China's pharmaceutical industry is constantly transitioning to innovative drugs, pharmaceutical research and development expenditure is showing a high-speed growth trend, which also strongly promote the global pharmaceutical outsourcing industry chain to China.