The semi-annual reports of biopharmaceutical companies have been released one after another. Innovent, Henlius, Betta, etc. have entered the CDMO market strongly! Is it better to "sell water" to be innovative drugs?

Entering August, the results of biopharmaceutical companies in the first half of 2022 have been released one after another!

It is worth paying attention to the CXO sect.

The performance of the leader WuXi AppTec in the first half of the year also exceeded expectatio.

Note: Part of the performance forecast Source: Announcements of various companies

It is not difficult to see that the pharmaceutical outsourcing service industry (CXO) still maintained a high market prosperity in the first half of this year, and the corporate valuation given by the capital market was also at a high lev.

Today, in the face of the cold winter of the capital market, Biotech companies are generally faced with investors' questioning of the innovative value of new drugs and concerns about the quality of innovati.

Recently, innovative pharmaceutical companies such as Innovent Bio, Rongchang Bio, Henlius, Betta Pharmaceuticals, e.

"On the one hand, the CDMO business is becoming more and more prosperous, and on the other hand, the value of innovative drug research and development needs to be reassess.

Extending CDMO from innovative drugs

Your preferred solution for stress?

If the research and development of innovative drugs is compared to "gold rush", then CXO is a group that serves gold digge.

Because the research and development of innovative drugs often requires huge investment of resources, early Biotech companies often need to rely on CXO companies for collaborative research and development or producti.

In fact, in addition to the old CDMO players, Biotech innovative pharmaceutical companies as Party A have recently entered the CDMO Party B market, which has attracted industry attention:

In May of this year, Innovent Bio launched Sherpa B.

In March of this year, Henlius launched a wholly-owned subsidiary, Anton Ruilin, to officially undertake CDMO services for biological drugs, covering monoclonal antibodies, recombinant proteins, fusion proteins, and double antibodi.

Prior to this, Betta Pharmaceuticals and Tianguangshi Biology jointly established Fucheng Bio, 3SBio released its independent CDMO operating platform Shanghai Shengguo, Yi'an Jishi and Myboss Bio merged to form Chuangsheng Group, and Rongchang Bio-related enterprises McBairy's layout of ADC-CD.

From the perspective of the industry, the domestic CDMO industry has begun to enter the harvest seas.

Under the cold capital winter, many innovative drug companies may choose to use their vacant own production capacity to undertake CDMO-related business considering cost pressure and capital investme.

Experts said that all innovative pharmaceutical companies, whether it is Big Pharma or Biotech, are difficult to linearly and perfectly predict capacity deployme.

However, for Chinese Biotech companies, the mismatch between the huge R&D investment and the commercial transformation of products, and the cash flow pressure may be a more urgent choice to choose to extend CDMO under the capital wint.

Taking the performance of the first quarterly report of this year released by Innovent as an example, compared with the high-profile announcement in the first quarter of 2021 that Sintilimab sold 700 million yuan, the description object of "over 1 billion yuan" in the first quarter of 2022 has been replaced by "Total product", sintilimab only mentioned "usage and sales growt.

CDMO "rushes on"

In the end, it is inevitable to "chicken feathers in one place"?

CDMOs are rushing to the scene, and there is a scene of "CXO for al.

The overall environment is undoubtedly directly related to the market dividends brought about by the division of labor in the industrial chain and the promotion of internationalization after the implementation of the MAH syst.

As more and more players enter the game, the competition of CDMOs is getting fierc.

There are reasonable reasons for some innovative drug companies to extend their CDMO business across borders, and they can also expand their own interests in the short te.

It is worth mentioning that the recent stock market and performance of the CRO/CDMO sector have begun to differentia.

WuXi AppTec's stock price fell 12% to close at 936 yuan per share the day after the results were releas.

Year-to-date, WuXi AppTec shares have fallen nearly 2

As of the close of trading on August 2, Proton shares fell from the highest of 1058 yuan per share in the past year to 501 yuan per share, and Kang Hualongcheng fell from the highest of 246 yuan per share to 78 yuan per share, with the highest market val.

shrink by more than 5

According to industry insiders, in the secondary market, the valuation of CDMO has begun to be hi.

With the rise of antibody business and cell business, a large number of new CDMO companies have accelerated their entry, resulting in a crowded industry development track and fierce competiti.

Today, the CDMO industry may have returned to the moment when it needs to truly reflect its val.

According to a rough estimate of the industry, there are more than 40 CDMO companies engaged in antibody and fusion protein dru.

There are many voices in the industry expressing concern about overcapaci.

In addition, it is not easy for biopharmaceutical companies to "cross-border" to extend CDMO busine.

Compared with companies specializing in CDMO, Biotech that is halfway involved may involve many principles and technical risks of the product itself, including possible Intellectual property and patent information risks, e.

, may further increase the difficulty of undertaking projec.

"Investors pour funds into leading Biotech companies, and leading companies spend their money on capacity construction to undertake CDMO projects, so why don't investors directly invest in CDMOs?" The more, and the "porridge" seems to be less and less, Biotech companies are likely to have no barriers and advantages in the stock competition in the CDMO sect.

The market also lacks enough enthusiasm for Biotech's cross-border extension of CD.

Compared with the extension of CDMO by upstream raw material/consumable companies such as Auscom and Opmax, the resources and advantages of Biotech companies are obviously different in terms of differences in downstream customers and upstream resourc.

dimensi.

"It is estimated that by 2025, the top ten CDMO companies in the world will occupy about 80% of the market sha.

" Some experts believe that, especially after the "Clinical Value-Oriented Clinical Research and Development Guidelines for Antitumor Drugs" issued by CDE, it means As the standards of the entire innovative drug research and development have improved, the CXO industry has also "raised all boats" according.

The policy has indeed had a certain impact on the entire service industry, and projects will accelerate to gather in leading service compani.

Every industry will have a process of developme.

At the beginning, it often grows savagely, and then it enters the mature stage and elimination stage, and finally the industry maintains ecological stability and self-revoluti.

The industry generally believes that, as a key link in CXO, the CDMO industry is running wildly, and it must be vigilant to rush forward, and then overcapacity, and finally ends up in a me.