The concept of pharmaceutical CRO strengthened, and individual stocks rose! Institution: optimistic about the high prosperity of the industry

【Pharmaceutical Network Market Analysis】 On December 29, the concept of pharmaceutical CRO strengthened
.
At 10:46, the CRO sector index reported 1787.
569 points, an increase of 3%, with a transaction of 4.
316 billion yuan, and a turnover rate of 0.
86%.

Among the individual stocks, Hongbo Pharmaceutical, Meditech rose by more than 7%, and Baicheng Pharmaceutical, Xintiandi, Kailaiying, Tigermed Pharmaceutical, etc.
followed suit
.
Data showed that Gloria rose 5.
58% to HK$113.
5; Zhaoyan New Drug rose 4.
33% to HK$41; Kanglong Chemical rose 4.
16% to HK$52.
6; WuXi Biologics rose 2.
51% to HK$59.
25; WuXi AppTec rose 2.
06% to HK$81.
65
.
Some institutions said that clinical CRO companies were previously affected by the epidemic in many places, which hindered the implementation of projects, and it is expected that clinical research is expected to return to normal rhythm
after experiencing the impact of the epidemic.
Some CDMO companies benefited from antiviral drug related orders, and achieved substantial revenue growth in 2021-2022H1; It is expected that in the post-epidemic era, with the breakthrough of global innovative treatment technology and the continuous improvement of downstream innovation demand, international CXO companies will continue to maintain business growth
.
In addition, some institutions said that CXO overseas company orders showed an upward trend, which was not affected by the big environment, and some companies raised their full-year forecasts; The growth rate of orders of domestic companies continued to grow rapidly, and contract liabilities, orders in hand, and new orders were all growing rapidly, showing a high industry prosperity
.
It is understood that after years of verification, the results of the CRO industry to help pharmaceutical companies improve efficiency are obvious to all, taking the start of clinical trials as an example, the relevant research results show that the time cost spent by CRO in terms of the time of certification, selection and trial protocol start-up of the trial institution alone has saved nearly 20%; In the more important phase I.
-III.
clinical trial stage, the overall time can be saved by 34%.

It is precisely because of this that the willingness of pharmaceutical companies to choose CRO cooperation has become stronger in recent years
.
According to statistics, more than 50% of enterprises now choose CRO companies to assist them in drug research and development to reduce R&D costs and control risks
.
Among the reasons for choosing cooperation, the vast majority of enterprises are based on improving their own business core competitiveness, followed by the "new generation of enterprises"
born under the MAH system.
China's local CRO enterprises have also gradually developed in this process, such as WuXi AppTec, Zhaoyan New Drug, Tigermed Pharmaceutical and other enterprises have entered the CRO industry from the perspectives of drug discovery research, preclinical research and clinical research, and seized the opportunity period of rapid growth of the industry to become the current CRO industry enterprises in China, and promoted the further development
of the CRO industry in China 。 Based on small molecule drug design, Hongbo Pharmaceutical, which rose more than 7% today, is a one-stop service drug R&D and manufacturing company based on the key links in new drug research and development, and gradually builds a comprehensive technical service platform covering drug discovery, process research and development, as well as a commercial production platform for the production of key intermediates and independent products of new drugs, and has the ability to
provide customers with one-stop comprehensive services from preclinical R&D services to commercial production of new drugs 。 Hongbo Pharma is known for its small molecule drug design and has established in-depth cooperative relations with overseas biotech companies to assist customers in developing a variety of FIC drugs, and enjoys high bargaining power and distinctive business
.
At the same time, the company's main commercial varieties have a good competitive pattern and are in the stage of patent expiration, customer demand is expected to continue to increase, and it is expected to contribute new increments
as the company extends to higher value-added API business.
Some institutions said that they are optimistic about the long-term development of Hongbo Pharmaceutical, and it is expected that the company's net profit attributable to the parent in 2022-2024 will be 0.
63/1.
19/186 million yuan
.
Medici, which also rose by more than 7%, has sufficient orders, which provides a guarantee for performance growth, while the company continues to improve its technical level and R&D service capabilities, enhance the synergy effect of the business segment, and achieve rapid
growth in operating income with the further release of laboratory production capacity.
Some institutions expect that with the two subsidiaries put into operation one after another, Medici's operating scale and performance level will rise to a higher level
.
At the same time, the company continues to increase investment in research and development, and forward-looking layout in the field of cutting-edge technology of
biomedicine.
It is reported that Medixi insists on R&D and technological innovation as the core driving force of the company, promotes the innovation and construction of R&D platform, and invested 35.
7257 million yuan in R&D in 2022Q3, a year-on-year increase of 63.
13%; The company has built a series of platforms
in the field of biomedical cutting-edge technologies such as ADC, PROTAC and nucleic acid drugs.
Analysts pointed out that China's pharmaceutical industry has gradually developed
from the previous pattern of heavy imitation and low innovation to the development and production of innovative drugs and generic drugs with clinical value.
The upgrading of the pharmaceutical industry system will bring more high-tech and new technologies, and the scope of pharmaceutical outsourcing services will also move from the low end of the value chain to the high end, and the outsourcing scope will shift from low-end intermediates and bulk APIs to high value-added products such as patented APIs, generic drugs and innovative drugs, expanding from a small scale and a single structure to the overall outsourcing
of the whole life cycle of drugs.
Disclaimer: Under no circumstances does the information or opinions expressed herein constitute investment advice
to anyone.