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The establishment of WuXi AppTec and Wanquan Sunshine in 2000 means that the development of the local CRO industry has kicked off
.
In recent years, with the release of a series of good policies such as the new medical reform, pharmaceutical companies have paid more and more attention to pharmaceutical innovation and R&D.
Coupled with the improvement of domestic pharmaceutical CRO companies’ R&D strength and internal management level, the CRO industry has ushered in this context.
Opportunity to flourish
.
The industry predicts that under the general trend of international transfer of pharmaceutical research and development, domestic CRO companies will continue to make profits for a long period of time, and the industry will continue to maintain rapid growth
.
Data shows that the scale of China's CRO industry has grown from 13.
6 billion yuan in 2011 to 67.
8 billion yuan in 2018, with an average annual compound growth rate (CAGR) of more than 20%, and the CAGR for the next three years will probably remain at 20%~25%
.
According to industry estimates, by 2023, China's CRO market is expected to reach 17.
2 billion U.
S.
dollars
.
In the face of the broad blue ocean of the market, many companies have entered the market.
For example, some pharmaceutical companies, including Aibotech, are in the field of CRO, and there are also cross-border companies such as Lenovo and Pony Testing to try and explore
.
The author noticed that some pharmaceutical equipment companies are also actively seizing the opportunity to attack the CRO market
.
For example, Canaan Technology, a provider of total solutions for solid preparations smart factories, announced in September 2020 the company announced a fixed increase plan.
The total amount of funds to be raised will not exceed 450 million yuan to strengthen the main business layout, including the use of raised funds for pharmaceutical research and development services Platform upgrade and expansion project
.
The project intends to upgrade and expand the existing pharmaceutical research and development service platform through the company's wholly-owned subsidiary Bisson Pharmaceuticals, and build a comprehensive pharmaceutical technology platform focusing on formulation research and development
.
It is reported that in the first year after the completion of the project, the production capacity calculated on the basis of product revenue is expected to increase by 44.
59 million yuan per year
.
After the project is completed, it is expected to achieve full production capacity within three years.
The production capacity calculated by product revenue is expected to increase by 63,700,000 yuan per year
.
At present, Canaan Technology has invested tens of millions of yuan in the improvement of CRO research and development capabilities and the upgrade of testing equipment, and a relatively complete set of medical research and development and testing systems have been initially formed.
.
The company has also established a medical R&D service technical team composed of more than 20 R&D personnel
.
In 2019 and January-September 2020, the company's CRO business achieved revenues of 379,700 yuan and 2,380,800 yuan respectively
.
On December 17, 2021, Canaan Technology replied to the organization in a newly released research report that the company's pharmaceutical R&D service business operation carrier is the wholly-owned sun company Bisson Pharmaceuticals
.
At present, the company has initially formed a relatively complete medical R&D and testing system
.
Canaan Technology also stated that the customers of pharmaceutical research and development services and the company's pharmaceutical equipment business customers are highly overlapped
.
"When we recommend equipment to customers, we need to understand the customer’s process in advance; after that, the customer will bring the raw materials they need to produce to the company for small-scale and pilot-scale experiments.
It’s even more familiar; after the experiment is successful, when customers consider mass production, it is easier to directly select the company’s equipment as equipment for the new factory
.
” According to reports, the pharmaceutical R&D service is to open up the upstream and downstream industrial chain of pharmaceutical equipment.
From pharmaceutical equipment suppliers, It is an important step to gradually develop into a comprehensive solution provider that provides pharmaceutical enterprise customers with one-stop pharmaceutical services such as process development, equipment procurement, and project declaration
.
The company's development of a characteristic CRO business that combines pharmaceutical equipment and technology can further improve the technical level of the business, and at the same time, it can establish differentiated business advantages, establish unique market competitiveness, and build an industrial ecology
.
At present, the market for the pharmaceutical equipment industry to which Canaan Technology belongs is fierce.
On the one hand, it is competition among domestic counterparts, and on the other hand, it is the competition of imported manufacturers to seize the market
.
With the expansion of characteristic CRO business, it may help enterprises to form differentiated advantages and enhance market competitiveness
.
However, there is still uncertainty about how long it will bring benefits
.
It is estimated that there are currently thousands of CRO companies in the global biomedical field
.
There are many domestic CRO companies.
According to public statistics, the total number of domestic CRO companies has exceeded 500
.
But on the whole, most start-ups and small and medium-sized enterprises have relatively weak comprehensive R&D capabilities, have a single technical application field, and focus on a certain link of drug research and development, and cannot cover the main links of drug research and development, and their business development is subject to certain restrictions
.
In contrast, companies represented by some leading companies such as WuXi AppTec, Tigermed, Kanglong Chemical have strong core competitiveness in terms of the integrity of the core technology system
.
At present, WuXi AppTec, Tigermed Pharmaceuticals, and Kang Long Chemical have formed a three-pronged situation, accounting for about 27% of the national market share
.
The industry believes that the CRO industry has high technical barriers, and that leading companies have the advantages of specialization, scale and generous equity incentives, and are expected to continue to attract talents.
The advantages of leading companies may become more prominent in the future
.
.
In recent years, with the release of a series of good policies such as the new medical reform, pharmaceutical companies have paid more and more attention to pharmaceutical innovation and R&D.
Coupled with the improvement of domestic pharmaceutical CRO companies’ R&D strength and internal management level, the CRO industry has ushered in this context.
Opportunity to flourish
.
The industry predicts that under the general trend of international transfer of pharmaceutical research and development, domestic CRO companies will continue to make profits for a long period of time, and the industry will continue to maintain rapid growth
.
Data shows that the scale of China's CRO industry has grown from 13.
6 billion yuan in 2011 to 67.
8 billion yuan in 2018, with an average annual compound growth rate (CAGR) of more than 20%, and the CAGR for the next three years will probably remain at 20%~25%
.
According to industry estimates, by 2023, China's CRO market is expected to reach 17.
2 billion U.
S.
dollars
.
In the face of the broad blue ocean of the market, many companies have entered the market.
For example, some pharmaceutical companies, including Aibotech, are in the field of CRO, and there are also cross-border companies such as Lenovo and Pony Testing to try and explore
.
The author noticed that some pharmaceutical equipment companies are also actively seizing the opportunity to attack the CRO market
.
For example, Canaan Technology, a provider of total solutions for solid preparations smart factories, announced in September 2020 the company announced a fixed increase plan.
The total amount of funds to be raised will not exceed 450 million yuan to strengthen the main business layout, including the use of raised funds for pharmaceutical research and development services Platform upgrade and expansion project
.
The project intends to upgrade and expand the existing pharmaceutical research and development service platform through the company's wholly-owned subsidiary Bisson Pharmaceuticals, and build a comprehensive pharmaceutical technology platform focusing on formulation research and development
.
It is reported that in the first year after the completion of the project, the production capacity calculated on the basis of product revenue is expected to increase by 44.
59 million yuan per year
.
After the project is completed, it is expected to achieve full production capacity within three years.
The production capacity calculated by product revenue is expected to increase by 63,700,000 yuan per year
.
At present, Canaan Technology has invested tens of millions of yuan in the improvement of CRO research and development capabilities and the upgrade of testing equipment, and a relatively complete set of medical research and development and testing systems have been initially formed.
.
The company has also established a medical R&D service technical team composed of more than 20 R&D personnel
.
In 2019 and January-September 2020, the company's CRO business achieved revenues of 379,700 yuan and 2,380,800 yuan respectively
.
On December 17, 2021, Canaan Technology replied to the organization in a newly released research report that the company's pharmaceutical R&D service business operation carrier is the wholly-owned sun company Bisson Pharmaceuticals
.
At present, the company has initially formed a relatively complete medical R&D and testing system
.
Canaan Technology also stated that the customers of pharmaceutical research and development services and the company's pharmaceutical equipment business customers are highly overlapped
.
"When we recommend equipment to customers, we need to understand the customer’s process in advance; after that, the customer will bring the raw materials they need to produce to the company for small-scale and pilot-scale experiments.
It’s even more familiar; after the experiment is successful, when customers consider mass production, it is easier to directly select the company’s equipment as equipment for the new factory
.
” According to reports, the pharmaceutical R&D service is to open up the upstream and downstream industrial chain of pharmaceutical equipment.
From pharmaceutical equipment suppliers, It is an important step to gradually develop into a comprehensive solution provider that provides pharmaceutical enterprise customers with one-stop pharmaceutical services such as process development, equipment procurement, and project declaration
.
The company's development of a characteristic CRO business that combines pharmaceutical equipment and technology can further improve the technical level of the business, and at the same time, it can establish differentiated business advantages, establish unique market competitiveness, and build an industrial ecology
.
At present, the market for the pharmaceutical equipment industry to which Canaan Technology belongs is fierce.
On the one hand, it is competition among domestic counterparts, and on the other hand, it is the competition of imported manufacturers to seize the market
.
With the expansion of characteristic CRO business, it may help enterprises to form differentiated advantages and enhance market competitiveness
.
However, there is still uncertainty about how long it will bring benefits
.
It is estimated that there are currently thousands of CRO companies in the global biomedical field
.
There are many domestic CRO companies.
According to public statistics, the total number of domestic CRO companies has exceeded 500
.
But on the whole, most start-ups and small and medium-sized enterprises have relatively weak comprehensive R&D capabilities, have a single technical application field, and focus on a certain link of drug research and development, and cannot cover the main links of drug research and development, and their business development is subject to certain restrictions
.
In contrast, companies represented by some leading companies such as WuXi AppTec, Tigermed, Kanglong Chemical have strong core competitiveness in terms of the integrity of the core technology system
.
At present, WuXi AppTec, Tigermed Pharmaceuticals, and Kang Long Chemical have formed a three-pronged situation, accounting for about 27% of the national market share
.
The industry believes that the CRO industry has high technical barriers, and that leading companies have the advantages of specialization, scale and generous equity incentives, and are expected to continue to attract talents.
The advantages of leading companies may become more prominent in the future
.
