Summary of the highlights of the pharmaceutical equipment market in 2021: the proportion of biopharmaceutical products has increased rapidly

Looking back at 2021, the development of the pharmaceutical equipment industry can be described by four key words: digitalization, domestic substitution, green development, and internationalization
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The author has a detailed interpretation in the article "Annual Inventory: Interpretation of the Development of the Pharmaceutical Equipment Industry in 2021 from 4 Key Words"
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So, what are the more prominent highlights in the pharmaceutical machine market this year? Based on the announcements of several representative domestic pharmaceutical giants, the author summarizes the following two points
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Pharmaceutical equipment (picture source: Pharmaceutical Network) Highlight 1: From the perspective of product structure, the proportion of biopharmaceutical equipment in many pharmaceutical machinery companies will increase rapidly in 2021
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For example, Tofflon mentioned the changes in the company's revenue structure in the survey activity information table at the end of October.
It said that the increase in the proportion of bioengineering and cell equipment was one of the reasons for the company's 46% gross profit margin in the first three quarters
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Chutian Technology said in a survey report disclosed on November 29 that one of the highlights of this year's business is: the rapid increase in the proportion of products used in the field of biopharmaceuticals, which accounted for more than 40% of revenue and new orders
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For another example, Xinlai Yingcai received intensive investigations from a large number of institutions such as Debon Fund, Haitong Asset Management, and China Sea Securities on November 1.
It mentioned that the company's overall business progressed well in the first three quarters of 2021, and the food sector business remained stable.
Growth, the business of the biomedical sector benefited from the rapid growth of domestic and foreign vaccine companies' expansion
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In addition, with the release of the company's production capacity in the biomedical sector and pan-semiconductor sector, the company's gross profit has also increased
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Analysis believes that the rapid increase in the proportion of biopharmaceutical equipment of pharmaceutical giants is closely related to the high prosperity of the biomedical industry
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Since 2021, the biological products, vaccines and other sectors in the biomedicine field have grown rapidly, with promising prospects.
In addition, the CXO industry in the innovative drug industry chain has continued to maintain a high growth trend, bringing new opportunities to the upstream pharmaceutical equipment industry.
Corporate orders have increased significantly
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Among them, Chutian also said that the growth of biological drugs will drive the company's business growth, and the company's bioengineering sector will account for an increasing proportion in the future.

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Highlight two: In the early years, pharmaceutical machinery companies that continued to invest in high research and development in the early years are gradually showing the benefits of new products, and the pace of import substitution is accelerating
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For example, Chutian Technology mentioned in its survey on November 29 that the company's high R&D investment and advanced manufacturing investment in the past few years, and the layout of import substitution, have achieved results
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He also stated that the company's R&D capabilities, product manufacturing capabilities, quality assurance capabilities, and delivery capabilities have been tested by high-end vaccine production, and it has entered the high-end field, opening up import substitution
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In the first three quarters of this year, Chutian Technology achieved a year-on-year increase of 723.
53% in net profit
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From the perspective of R&D investment, in 2018, 2019, and 2020, Chutian Technology’s R&D investment will basically be more than 100 million yuan, maintaining about 10% of operating income
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In the first three quarters of 2021, Chutian Technology's R&D expenses were 307 million yuan, a year-on-year increase of 60.
7%
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Tofflon also stated in the research report disclosed on November 29 that the company's investment and research new product benefits in previous years have gradually emerged, leading to a gradual increase in the company's gross profit margin
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In the first three quarters of this year, Tofflon's gross profit margin was as high as 46%
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In terms of R&D investment, from 2018 to 2020, Tofflon’s R&D investment has also continued to increase, and its proportion of revenue has continued to increase
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According to the report for the first three quarters of 2021, Tofflon’s R&D expenses are 166 million yuan, which is twice as much as the full-year R&D expenses in 2020
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The analysis believes that the current pharmaceutical equipment industry is gradually developing from the low-end to the mid-to-high-end direction, which requires support from policies, R&D, and talents.
Companies that have prioritized R&D and innovation and actively deployed have ushered in a new product harvest period, which is expected in the future.
Further seize the market
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At the same time, companies represented by domestic giants such as Chutian Technology have continued to innovate and upgrade under the background of delayed delivery of imported equipment.
With the release of favorable policies, the pace of import substitution is expected to accelerate in the future
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