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Medical Network News on June 4
Domestic CXO development enters a bright moment
CXO is a medical contract outsourcing service, including three sub-sectors: CRO, CMO, and CDMO
.
Among them, CRO refers to medical contract research and development services, and CDMO and CMO refers to medical contract manufacturing services
.
In the development of new drugs, through pharmaceutical contract outsourcing, pharmaceutical companies or biotechnology companies entrust drug R&D and production companies to provide professional R&D services, providing technical process development, API and intermediate production, preparation production, etc.
required for the production of drugs
.
.
Among them, CRO refers to medical contract research and development services, and CDMO and CMO refers to medical contract manufacturing services
.
In the development of new drugs, through pharmaceutical contract outsourcing, pharmaceutical companies or biotechnology companies entrust drug R&D and production companies to provide professional R&D services, providing technical process development, API and intermediate production, preparation production, etc.
required for the production of drugs
.
CRO focuses on the drug development of small batches of compounds in the experimental stage, and CDMO focuses on the optimization of the production process
.
CDMO requires companies to independently optimize drugs before mass production, while CMO is only responsible for mass production of drugs, not independent innovation
.
At present, the pharmaceutical CXO industry is in a period of rapid development, and most companies are facing business transformation.
By developing a one-stop platform, they can enrich their business
.
.
CDMO requires companies to independently optimize drugs before mass production, while CMO is only responsible for mass production of drugs, not independent innovation
.
At present, the pharmaceutical CXO industry is in a period of rapid development, and most companies are facing business transformation.
By developing a one-stop platform, they can enrich their business
.
In recent years, China's CXO market has been developing rapidly
.
According to relevant statistics, China's pharmaceutical CXO market has grown from US$70.
2 billion in 2013 to US$143.
9 billion in 2020, with a compound annual growth rate of 10.
80%
.
It is estimated that by 2025, the scale of China's CXO market is expected to reach US$244 billion
.
.
According to relevant statistics, China's pharmaceutical CXO market has grown from US$70.
2 billion in 2013 to US$143.
9 billion in 2020, with a compound annual growth rate of 10.
80%
.
It is estimated that by 2025, the scale of China's CXO market is expected to reach US$244 billion
.
Figure 1: Market scale of China's CXO industry (unit: US$100 million)
In 2020, the operating income, net profit attributable to the parent, and net profit attributable to the parent with deductions for major CXO companies in China will show an overall growth trend
.
From 2017 to 2020, the CAGR of the first-tier domestic CXO companies (WuXi AppTec, WuXi Biologics, Kanglong Chemical, Tigermed, Kailai Ying, Proton, etc.
) shall not be less than 20%
.
.
From 2017 to 2020, the CAGR of the first-tier domestic CXO companies (WuXi AppTec, WuXi Biologics, Kanglong Chemical, Tigermed, Kailai Ying, Proton, etc.
) shall not be less than 20%
.
Figure 2: Operating income and profit of major CXO companies in 2020
Figure 3: Revenue (100 million yuan) and growth rate of major CXO companies from 2017 to 2020
With the development of the pharmaceutical outsourcing industry, China has gradually accumulated advantages in CXO technology and broadened the scope of the industrial chain
.
Most companies have not yet conducted business penetration in the drug discovery stage, so they do not cover CRO, CMO, and CDMO.
However, because WuXi Biologics and WuXi AppTec belong to the same controlling shareholder, their business scopes are completely complementary and cover all new drug development stages
.
.
Most companies have not yet conducted business penetration in the drug discovery stage, so they do not cover CRO, CMO, and CDMO.
However, because WuXi Biologics and WuXi AppTec belong to the same controlling shareholder, their business scopes are completely complementary and cover all new drug development stages
.
At present, domestic CXO companies, WuXi AppTec and Gloriain are the leading small molecule CDMO companies, and WuXi Biologics is a macromolecular CDMO unicorn company, accounting for about 80% of the market share of the macromolecule market
.
.
CXO drivers in China
The MAH (Marketing Authorization Holder) system realizes the separation of drug ownership and production rights.
Drug listing and drug production can be carried out step by step.
It is a fundamental factor that promotes the development of the CXO industry and allows pharmaceutical companies, R&D institutions or scholars to become drug listings.
The license holder can entrust other pharmaceutical companies to produce drugs and assume the main legal responsibility for the quality of drug production and sales
.
Drug listing and drug production can be carried out step by step.
It is a fundamental factor that promotes the development of the CXO industry and allows pharmaceutical companies, R&D institutions or scholars to become drug listings.
The license holder can entrust other pharmaceutical companies to produce drugs and assume the main legal responsibility for the quality of drug production and sales
.
Data source: compilation of public information
According to public statistics, the clinical phase I CRO service has been reduced by 22 weeks, the clinical phase II has been reduced by 58 weeks, and the clinical phase III has been reduced by 52 weeks
.
CRO services help pharmaceutical companies reduce time costs during the clinical research period.
Pharmaceutical companies can focus on developing their own distinctive businesses, optimizing their own smile curve, and maximizing benefits
.
.
CRO services help pharmaceutical companies reduce time costs during the clinical research period.
Pharmaceutical companies can focus on developing their own distinctive businesses, optimizing their own smile curve, and maximizing benefits
.
The accelerated growth in the number of new drug INDs reflects the high demand for innovative drugs in China
.
Data shows that the number of domestic new drug INDs was 337 in 2019, an increase of 121 compared to 2018, maintaining rapid growth
.
Among them, the number of domestically produced drug INDs was 202, and the number of biological drugs was 135, both of which have increased significantly compared with 2018, indicating that domestic pharmaceutical companies have continued to increase their willingness and investment in new drug research and development in 2019, which has promoted the development of the domestic CXO industry
.
.
Data shows that the number of domestic new drug INDs was 337 in 2019, an increase of 121 compared to 2018, maintaining rapid growth
.
Among them, the number of domestically produced drug INDs was 202, and the number of biological drugs was 135, both of which have increased significantly compared with 2018, indicating that domestic pharmaceutical companies have continued to increase their willingness and investment in new drug research and development in 2019, which has promoted the development of the domestic CXO industry
.
Figure 4: Statistics on the number of domestic new drug INDs
The development trend of China's CXO industry
Small molecule drug R&D companies are facing business transformation
.
.
From the perspective of the composition of new drugs approved by the FDA, small molecule drugs still occupy the main market
.
In 2020, small molecules accounted for more than 70% of the drugs approved by the FDA, but the proportion has been declining year by year, while the proportion of macromolecular drugs is gradually increasing
.
.
In 2020, small molecules accounted for more than 70% of the drugs approved by the FDA, but the proportion has been declining year by year, while the proportion of macromolecular drugs is gradually increasing
.
However, from the perspective of sales scale, the sales scale of small molecule drugs will account for 46% in 2020.
Compared with 70% of the sales of small molecule drugs in 2015, the sales scale has shrunk and decreased year by year
.
Competition in the small molecule drug industry has intensified, and new drug varieties have increased, but the number of single drug sales has declined, indicating that pharmaceutical companies have reduced their willingness to sell small molecule drugs
.
This will lead to a reduction in the demand for outsourcing of R&D and production of small molecule drugs by pharmaceutical companies, which in turn restricts the development of small molecule drugs
.
Compared with 70% of the sales of small molecule drugs in 2015, the sales scale has shrunk and decreased year by year
.
Competition in the small molecule drug industry has intensified, and new drug varieties have increased, but the number of single drug sales has declined, indicating that pharmaceutical companies have reduced their willingness to sell small molecule drugs
.
This will lead to a reduction in the demand for outsourcing of R&D and production of small molecule drugs by pharmaceutical companies, which in turn restricts the development of small molecule drugs
.
From the perspective of TOP20 drugs by global drug sales in 2020, the advantages of the number of varieties and sales of macromolecules are more obvious
.
13 kinds are macromolecular drugs and 7 kinds are small molecule drugs
.
Small molecule drug revenue accounted for only 36.
21%, while macromolecular drug revenue accounted for a record high of 63.
79%
.
.
13 kinds are macromolecular drugs and 7 kinds are small molecule drugs
.
Small molecule drug revenue accounted for only 36.
21%, while macromolecular drug revenue accounted for a record high of 63.
79%
.
Figure 5: 2020 global drug sales TOP20 drugs
Therefore, small-molecule drug companies face the fiercely competitive small-molecule market and need to consider following the trend of large-molecule drugs and transforming their businesses to increase business revenue
.
.
It will become a new development trend for CXO enterprises to build a one-stop service platform
.
The one-stop service platform runs through the entire process of new drug R&D and production, forming a CRO+CDMO model, and expanding the business scope of the enterprise
.
.
The one-stop service platform runs through the entire process of new drug R&D and production, forming a CRO+CDMO model, and expanding the business scope of the enterprise
.
One-stop service platform refers to providing customers with integrated production services in the entire process of new drug R&D and production, meeting the production needs of customers throughout the drug life cycle, improving customer R&D efficiency, expanding business scope, reducing customer acquisition costs for CXO companies, and enhancing Customer stickiness
.
Enterprises can develop a one-stop service platform through two ways of investment, self-construction and enterprise mergers and acquisitions
.
For example, leaders in the CDMO industry such as WuXi AppTec have adopted the method of mergers and acquisitions to expand their business scope and extend to the CRO service field, further becoming the leader in the pharmaceutical CXO industry
.
.
Enterprises can develop a one-stop service platform through two ways of investment, self-construction and enterprise mergers and acquisitions
.
For example, leaders in the CDMO industry such as WuXi AppTec have adopted the method of mergers and acquisitions to expand their business scope and extend to the CRO service field, further becoming the leader in the pharmaceutical CXO industry
.
On the one hand, it can supplement its own business gaps by acquiring companies with technological advantages; on the other hand, it can expand its production capacity and enhance its production strength by acquiring idle production capacity of large pharmaceutical companies.
At the same time, it can enter new markets by acquiring local production capacity
.
For example, Avara has successively acquired the factories of large pharmaceutical companies such as AstraZeneca, Astellas, Utimes, Merck, Pfizer, GSK and other large pharmaceutical companies, and the market continues to expand
.
At the same time, it can enter new markets by acquiring local production capacity
.
For example, Avara has successively acquired the factories of large pharmaceutical companies such as AstraZeneca, Astellas, Utimes, Merck, Pfizer, GSK and other large pharmaceutical companies, and the market continues to expand
.
Building a one-stop drug R&D and production platform is an effective measure for CXO companies to improve efficiency, and it is also the development trend of the pharmaceutical CXO industry
.
Its advantage is to track the entire process of drug research and development, facilitate traceability, and improve efficiency.
At the same time, the cooperation between various sectors to expand the scale of advantages and enhance the profitability of the company
.
WuXi AppTec and WuXi Biologics are currently the world's leading companies in the platformization of small molecules and macromolecules
.
.
Its advantage is to track the entire process of drug research and development, facilitate traceability, and improve efficiency.
At the same time, the cooperation between various sectors to expand the scale of advantages and enhance the profitability of the company
.
WuXi AppTec and WuXi Biologics are currently the world's leading companies in the platformization of small molecules and macromolecules
.
AI technology will be applied to the entire process of new drug research and development
.
At present, large CXO companies have cooperated with AI companies.
AI technology has become an important part of the development of the pharmaceutical CXO industry.
AI technology can be used in five stages of drug discovery, preclinical research, clinical trials, drug production and sales promotion, and runs through the entire new drug research and development.
Production and sales links
.
Mainly used in nine scenarios of target discovery, compound synthesis, new indication discovery, compound screening, crystal form prediction, patient recruitment, optimization of clinical trial design, drug inspection, academic promotion, and AI through deep learning, machine learning, and image recognition Technology to improve the efficiency of drug R&D, production and sales.
WuXi AppTec and Insilico Medicine, Proton and Jingtai Technology have all cooperated, and the cooperation in the field of drug intelligent development has been at the forefront of the world
.
.
At present, large CXO companies have cooperated with AI companies.
AI technology has become an important part of the development of the pharmaceutical CXO industry.
AI technology can be used in five stages of drug discovery, preclinical research, clinical trials, drug production and sales promotion, and runs through the entire new drug research and development.
Production and sales links
.
Mainly used in nine scenarios of target discovery, compound synthesis, new indication discovery, compound screening, crystal form prediction, patient recruitment, optimization of clinical trial design, drug inspection, academic promotion, and AI through deep learning, machine learning, and image recognition Technology to improve the efficiency of drug R&D, production and sales.
WuXi AppTec and Insilico Medicine, Proton and Jingtai Technology have all cooperated, and the cooperation in the field of drug intelligent development has been at the forefront of the world
.
Concluding remarks
At present, the domestic "endogenous + outsourcing" continues to promote production capacity construction, and all CXO companies are accelerating production capacity deployment and rapidly improving their ability to accept orders
.
The number of projects and customers of WuXi AppTec, Kanglong Chemical and Jiuzhou Pharmaceutical have all grown rapidly
.
The production capacity is gradually increasing, and the performance is reflected in the continuous increase in the number of commercial projects
.
Compared with 2019, WuXi AppTec, Gloria, and Proton have all achieved an orderly increase in the number of commercialization in 2020
.
.
The number of projects and customers of WuXi AppTec, Kanglong Chemical and Jiuzhou Pharmaceutical have all grown rapidly
.
The production capacity is gradually increasing, and the performance is reflected in the continuous increase in the number of commercial projects
.
Compared with 2019, WuXi AppTec, Gloria, and Proton have all achieved an orderly increase in the number of commercialization in 2020
.
When pharmaceutical companies choose long-term partners, they will be more inclined to choose leading companies with good reputation, strong technology, and high-quality services.
Superimposed on the continuous high demand for CXO, it is expected that leading CXO companies will maintain a high base and high growth trend
.
Superimposed on the continuous high demand for CXO, it is expected that leading CXO companies will maintain a high base and high growth trend
.
In the future, macromolecules will become the main battlefield.
CXO companies need to follow the trend of macromolecular drugs and make transformations as soon as possible to maintain their sustainability and enhance their core competitiveness
.
CXO companies need to follow the trend of macromolecular drugs and make transformations as soon as possible to maintain their sustainability and enhance their core competitiveness
.
Medical Network News on June 4
Domestic CXO development enters a bright moment
CXO is a medical contract outsourcing service, including three sub-sectors: CRO, CMO, and CDMO
.
Among them, CRO refers to medical contract research and development services, and CDMO and CMO refers to medical contract manufacturing services
.
In the development of new drugs, through pharmaceutical contract outsourcing, pharmaceutical companies or biotechnology companies entrust drug R&D and production companies to provide professional R&D services, providing technical process development, API and intermediate production, preparation production, etc.
required for the production of drugs
.
.
Among them, CRO refers to medical contract research and development services, and CDMO and CMO refers to medical contract manufacturing services
.
In the development of new drugs, through pharmaceutical contract outsourcing, pharmaceutical companies or biotechnology companies entrust drug R&D and production companies to provide professional R&D services, providing technical process development, API and intermediate production, preparation production, etc.
required for the production of drugs
.
CRO focuses on the drug development of small batches of compounds in the experimental stage, and CDMO focuses on the optimization of the production process
.
CDMO requires companies to independently optimize drugs before mass production, while CMO is only responsible for mass production of drugs, not independent innovation
.
At present, the pharmaceutical CXO industry is in a period of rapid development, and most companies are facing business transformation.
By developing a one-stop platform, they can enrich their business
.
.
CDMO requires companies to independently optimize drugs before mass production, while CMO is only responsible for mass production of drugs, not independent innovation
.
At present, the pharmaceutical CXO industry is in a period of rapid development, and most companies are facing business transformation.
By developing a one-stop platform, they can enrich their business
.
In recent years, China's CXO market has been developing rapidly
.
According to relevant statistics, China's pharmaceutical CXO market has grown from US$70.
2 billion in 2013 to US$143.
9 billion in 2020, with a compound annual growth rate of 10.
80%
.
It is estimated that by 2025, the scale of China's CXO market is expected to reach US$244 billion
.
.
According to relevant statistics, China's pharmaceutical CXO market has grown from US$70.
2 billion in 2013 to US$143.
9 billion in 2020, with a compound annual growth rate of 10.
80%
.
It is estimated that by 2025, the scale of China's CXO market is expected to reach US$244 billion
.
Figure 1: Market scale of China's CXO industry (unit: US$100 million)
In 2020, the operating income, net profit attributable to the parent, and net profit attributable to the parent with deductions for major CXO companies in China will show an overall growth trend
.
From 2017 to 2020, the CAGR of the first-tier domestic CXO companies (WuXi AppTec, WuXi Biologics, Kanglong Chemical, Tigermed, Kailai Ying, Proton, etc.
) shall not be less than 20%
.
.
From 2017 to 2020, the CAGR of the first-tier domestic CXO companies (WuXi AppTec, WuXi Biologics, Kanglong Chemical, Tigermed, Kailai Ying, Proton, etc.
) shall not be less than 20%
.
Figure 2: Operating income and profit of major CXO companies in 2020
Figure 3: Revenue (100 million yuan) and growth rate of major CXO companies from 2017 to 2020
With the development of the pharmaceutical outsourcing industry, China has gradually accumulated advantages in CXO technology and broadened the scope of the industrial chain
.
Most companies have not yet conducted business penetration in the drug discovery stage, so they do not cover CRO, CMO, and CDMO.
However, because WuXi Biologics and WuXi AppTec belong to the same controlling shareholder, their business scopes are completely complementary and cover all new drug development stages
.
.
Most companies have not yet conducted business penetration in the drug discovery stage, so they do not cover CRO, CMO, and CDMO.
However, because WuXi Biologics and WuXi AppTec belong to the same controlling shareholder, their business scopes are completely complementary and cover all new drug development stages
.
At present, domestic CXO companies, WuXi AppTec and Gloriain are the leading small molecule CDMO companies, and WuXi Biologics is a macromolecular CDMO unicorn company, accounting for about 80% of the market share of the macromolecule market
.
.
CXO drivers in China
The MAH (Marketing Authorization Holder) system realizes the separation of drug ownership and production rights.
Drug listing and drug production can be carried out step by step.
It is a fundamental factor that promotes the development of the CXO industry and allows pharmaceutical companies, R&D institutions or scholars to become drug listings.
The license holder can entrust other pharmaceutical companies to produce drugs and assume the main legal responsibility for the quality of drug production and sales
.
Drug listing and drug production can be carried out step by step.
It is a fundamental factor that promotes the development of the CXO industry and allows pharmaceutical companies, R&D institutions or scholars to become drug listings.
The license holder can entrust other pharmaceutical companies to produce drugs and assume the main legal responsibility for the quality of drug production and sales
.
Data source: compilation of public information
According to public statistics, the clinical phase I CRO service has been reduced by 22 weeks, the clinical phase II has been reduced by 58 weeks, and the clinical phase III has been reduced by 52 weeks
.
CRO services help pharmaceutical companies reduce time costs during the clinical research period.
Pharmaceutical companies can focus on developing their own distinctive businesses, optimizing their own smile curve, and maximizing benefits
.
.
CRO services help pharmaceutical companies reduce time costs during the clinical research period.
Pharmaceutical companies can focus on developing their own distinctive businesses, optimizing their own smile curve, and maximizing benefits
.
The accelerated growth in the number of new drug INDs reflects the high demand for innovative drugs in China
.
Data shows that the number of domestic new drug INDs was 337 in 2019, an increase of 121 compared to 2018, maintaining rapid growth
.
Among them, the number of domestically produced drug INDs was 202, and the number of biological drugs was 135, both of which have increased significantly compared with 2018, indicating that domestic pharmaceutical companies have continued to increase their willingness and investment in new drug research and development in 2019, which has promoted the development of the domestic CXO industry
.
.
Data shows that the number of domestic new drug INDs was 337 in 2019, an increase of 121 compared to 2018, maintaining rapid growth
.
Among them, the number of domestically produced drug INDs was 202, and the number of biological drugs was 135, both of which have increased significantly compared with 2018, indicating that domestic pharmaceutical companies have continued to increase their willingness and investment in new drug research and development in 2019, which has promoted the development of the domestic CXO industry
.
Figure 4: Statistics on the number of domestic new drug INDs
The development trend of China's CXO industry
Small molecule drug R&D companies are facing business transformation
.
.
From the perspective of the composition of new drugs approved by the FDA, small molecule drugs still occupy the main market
.
In 2020, small molecules accounted for more than 70% of the drugs approved by the FDA, but the proportion has been declining year by year, while the proportion of macromolecular drugs is gradually increasing
.
.
In 2020, small molecules accounted for more than 70% of the drugs approved by the FDA, but the proportion has been declining year by year, while the proportion of macromolecular drugs is gradually increasing
.
However, from the perspective of sales scale, the sales scale of small molecule drugs will account for 46% in 2020.
Compared with 70% of the sales of small molecule drugs in 2015, the sales scale has shrunk and decreased year by year
.
Competition in the small molecule drug industry has intensified, and new drug varieties have increased, but the number of single drug sales has declined, indicating that pharmaceutical companies have reduced their willingness to sell small molecule drugs
.
This will lead to a reduction in the demand for outsourcing of R&D and production of small molecule drugs by pharmaceutical companies, which in turn restricts the development of small molecule drugs
.
Compared with 70% of the sales of small molecule drugs in 2015, the sales scale has shrunk and decreased year by year
.
Competition in the small molecule drug industry has intensified, and new drug varieties have increased, but the number of single drug sales has declined, indicating that pharmaceutical companies have reduced their willingness to sell small molecule drugs
.
This will lead to a reduction in the demand for outsourcing of R&D and production of small molecule drugs by pharmaceutical companies, which in turn restricts the development of small molecule drugs
.
From the perspective of TOP20 drugs by global drug sales in 2020, the advantages of the number of varieties and sales of macromolecules are more obvious
.
13 kinds are macromolecular drugs and 7 kinds are small molecule drugs
.
Small molecule drug revenue accounted for only 36.
21%, while macromolecular drug revenue accounted for a record high of 63.
79%
.
.
13 kinds are macromolecular drugs and 7 kinds are small molecule drugs
.
Small molecule drug revenue accounted for only 36.
21%, while macromolecular drug revenue accounted for a record high of 63.
79%
.
Figure 5: 2020 global drug sales TOP20 drugs
Therefore, small-molecule drug companies face the fiercely competitive small-molecule market and need to consider following the trend of large-molecule drugs and transforming their businesses to increase business revenue
.
.
It will become a new development trend for CXO enterprises to build a one-stop service platform
.
The one-stop service platform runs through the entire process of new drug R&D and production, forming a CRO+CDMO model, and expanding the business scope of the enterprise
.
.
The one-stop service platform runs through the entire process of new drug R&D and production, forming a CRO+CDMO model, and expanding the business scope of the enterprise
.
One-stop service platform refers to providing customers with integrated production services in the entire process of new drug R&D and production, meeting the production needs of customers throughout the drug life cycle, improving customer R&D efficiency, expanding business scope, reducing customer acquisition costs for CXO companies, and enhancing Customer stickiness
.
Enterprises can develop a one-stop service platform through two ways of investment, self-construction and enterprise mergers and acquisitions
.
For example, leaders in the CDMO industry such as WuXi AppTec have adopted the method of mergers and acquisitions to expand their business scope and extend to the CRO service field, further becoming the leader in the pharmaceutical CXO industry
.
.
Enterprises can develop a one-stop service platform through two ways of investment, self-construction and enterprise mergers and acquisitions
.
For example, leaders in the CDMO industry such as WuXi AppTec have adopted the method of mergers and acquisitions to expand their business scope and extend to the CRO service field, further becoming the leader in the pharmaceutical CXO industry
.
On the one hand, it can supplement its own business gaps by acquiring companies with technological advantages; on the other hand, it can expand its production capacity and enhance its production strength by acquiring idle production capacity of large pharmaceutical companies.
At the same time, it can enter new markets by acquiring local production capacity
.
For example, Avara has successively acquired the factories of large pharmaceutical companies such as AstraZeneca, Astellas, Utimes, Merck, Pfizer, GSK and other large pharmaceutical companies, and the market continues to expand
.
At the same time, it can enter new markets by acquiring local production capacity
.
For example, Avara has successively acquired the factories of large pharmaceutical companies such as AstraZeneca, Astellas, Utimes, Merck, Pfizer, GSK and other large pharmaceutical companies, and the market continues to expand
.
Building a one-stop drug R&D and production platform is an effective measure for CXO companies to improve efficiency, and it is also the development trend of the pharmaceutical CXO industry
.
Its advantage is to track the entire process of drug research and development, facilitate traceability, and improve efficiency.
At the same time, the cooperation between various sectors to expand the scale of advantages and enhance the profitability of the company
.
WuXi AppTec and WuXi Biologics are currently the world's leading companies in the platformization of small molecules and macromolecules
.
.
Its advantage is to track the entire process of drug research and development, facilitate traceability, and improve efficiency.
At the same time, the cooperation between various sectors to expand the scale of advantages and enhance the profitability of the company
.
WuXi AppTec and WuXi Biologics are currently the world's leading companies in the platformization of small molecules and macromolecules
.
AI technology will be applied to the entire process of new drug research and development
.
At present, large CXO companies have cooperated with AI companies.
AI technology has become an important part of the development of the pharmaceutical CXO industry.
AI technology can be used in five stages of drug discovery, preclinical research, clinical trials, drug production and sales promotion, and runs through the entire new drug research and development.
Production and sales links
.
Mainly used in nine scenarios of target discovery, compound synthesis, new indication discovery, compound screening, crystal form prediction, patient recruitment, optimization of clinical trial design, drug inspection, academic promotion, and AI through deep learning, machine learning, and image recognition Technology to improve the efficiency of drug R&D, production and sales.
WuXi AppTec and Insilico Medicine, Proton and Jingtai Technology have all cooperated, and the cooperation in the field of drug intelligent development has been at the forefront of the world
.
.
At present, large CXO companies have cooperated with AI companies.
AI technology has become an important part of the development of the pharmaceutical CXO industry.
AI technology can be used in five stages of drug discovery, preclinical research, clinical trials, drug production and sales promotion, and runs through the entire new drug research and development.
Production and sales links
.
Mainly used in nine scenarios of target discovery, compound synthesis, new indication discovery, compound screening, crystal form prediction, patient recruitment, optimization of clinical trial design, drug inspection, academic promotion, and AI through deep learning, machine learning, and image recognition Technology to improve the efficiency of drug R&D, production and sales.
WuXi AppTec and Insilico Medicine, Proton and Jingtai Technology have all cooperated, and the cooperation in the field of drug intelligent development has been at the forefront of the world
.
Concluding remarks
At present, the domestic "endogenous + outsourcing" continues to promote production capacity construction, and all CXO companies are accelerating production capacity deployment and rapidly improving their ability to accept orders
.
The number of projects and customers of WuXi AppTec, Kanglong Chemical and Jiuzhou Pharmaceutical have all grown rapidly
.
The production capacity is gradually increasing, and the performance is reflected in the continuous increase in the number of commercial projects
.
Compared with 2019, WuXi AppTec, Gloria, and Proton have all achieved an orderly increase in the number of commercialization in 2020
.
.
The number of projects and customers of WuXi AppTec, Kanglong Chemical and Jiuzhou Pharmaceutical have all grown rapidly
.
The production capacity is gradually increasing, and the performance is reflected in the continuous increase in the number of commercial projects
.
Compared with 2019, WuXi AppTec, Gloria, and Proton have all achieved an orderly increase in the number of commercialization in 2020
.
When pharmaceutical companies choose long-term partners, they will be more inclined to choose leading companies with good reputation, strong technology, and high-quality services.
Superimposed on the continuous high demand for CXO, it is expected that leading CXO companies will maintain a high base and high growth trend
.
Superimposed on the continuous high demand for CXO, it is expected that leading CXO companies will maintain a high base and high growth trend
.
In the future, macromolecules will become the main battlefield.
CXO companies need to follow the trend of macromolecular drugs and make transformations as soon as possible to maintain their sustainability and enhance their core competitiveness
.
CXO companies need to follow the trend of macromolecular drugs and make transformations as soon as possible to maintain their sustainability and enhance their core competitiveness
.
Medical Network News on June 4
Domestic CXO development enters a bright moment
Domestic CXO development enters a bright moment CXO is a medical contract outsourcing service, including three sub-sectors: CRO, CMO, and CDMO
.
Among them, CRO refers to medical contract research and development services, and CDMO and CMO refers to medical contract manufacturing services
.
In the development of new drugs, through pharmaceutical contract outsourcing, pharmaceutical companies or biotechnology companies entrust drug R&D and production companies to provide professional R&D services, providing technical process development, API and intermediate production, preparation production, etc.
required for the production of drugs
.
Pharmaceutical Pharmaceutical Pharmaceutical Enterprise Enterprise Enterprise.
Among them, CRO refers to medical contract research and development services, and CDMO and CMO refers to medical contract manufacturing services
.
In the development of new drugs, through pharmaceutical contract outsourcing, pharmaceutical companies or biotechnology companies entrust drug R&D and production companies to provide professional R&D services, providing technical process development, API and intermediate production, preparation production, etc.
required for the production of drugs
.
CRO focuses on the drug development of small batches of compounds in the experimental stage, and CDMO focuses on the optimization of the production process
.
CDMO requires companies to independently optimize drugs before mass production, while CMO is only responsible for mass production of drugs, not independent innovation
.
At present, the pharmaceutical CXO industry is in a period of rapid development, and most companies are facing business transformation.
By developing a one-stop platform, they can enrich their business
.
.
CDMO requires companies to independently optimize drugs before mass production, while CMO is only responsible for mass production of drugs, not independent innovation
.
At present, the pharmaceutical CXO industry is in a period of rapid development, and most companies are facing business transformation.
By developing a one-stop platform, they can enrich their business
.
In recent years, China's CXO market has been developing rapidly
.
According to relevant statistics, China's pharmaceutical CXO market has grown from US$70.
2 billion in 2013 to US$143.
9 billion in 2020, with a compound annual growth rate of 10.
80%
.
It is estimated that by 2025, the scale of China's CXO market is expected to reach US$244 billion
.
.
According to relevant statistics, China's pharmaceutical CXO market has grown from US$70.
2 billion in 2013 to US$143.
9 billion in 2020, with a compound annual growth rate of 10.
80%
.
It is estimated that by 2025, the scale of China's CXO market is expected to reach US$244 billion
.
Figure 1: Market scale of China's CXO industry (unit: US$100 million)
In 2020, the operating income, net profit attributable to the parent, and net profit attributable to the parent with deductions for major CXO companies in China will show an overall growth trend
.
From 2017 to 2020, the CAGR of the first-tier domestic CXO companies (WuXi AppTec, WuXi Biologics, Kanglong Chemical, Tigermed, Kailai Ying, Proton, etc.
) shall not be less than 20%
.
.
From 2017 to 2020, the CAGR of the first-tier domestic CXO companies (WuXi AppTec, WuXi Biologics, Kanglong Chemical, Tigermed, Kailai Ying, Proton, etc.
) shall not be less than 20%
.
Figure 2: Operating income and profit of major CXO companies in 2020
Figure 3: Revenue (100 million yuan) and growth rate of major CXO companies from 2017 to 2020
With the development of the pharmaceutical outsourcing industry, China has gradually accumulated advantages in CXO technology and broadened the scope of the industrial chain
.
Most companies have not yet conducted business penetration in the drug discovery stage, so they do not cover CRO, CMO, and CDMO.
However, because WuXi Biologics and WuXi AppTec belong to the same controlling shareholder, their business scopes are completely complementary and cover all new drug development stages
.
.
Most companies have not yet conducted business penetration in the drug discovery stage, so they do not cover CRO, CMO, and CDMO.
However, because WuXi Biologics and WuXi AppTec belong to the same controlling shareholder, their business scopes are completely complementary and cover all new drug development stages
.
At present, domestic CXO companies, WuXi AppTec and Gloriain are the leading small molecule CDMO companies, and WuXi Biologics is a macromolecular CDMO unicorn company, accounting for about 80% of the market share of the macromolecule market
.
.
CXO drivers in China
CXO drivers in China The MAH (Marketing Authorization Holder) system realizes the separation of drug ownership and production rights.
Drug listing and drug production can be carried out step by step.
It is a fundamental factor that promotes the development of the CXO industry and allows pharmaceutical companies, R&D institutions or scholars to become drug listings.
The license holder can entrust other pharmaceutical companies to produce drugs and assume the main legal responsibility for the quality of drug production and sales
.
Drug listing and drug production can be carried out step by step.
It is a fundamental factor that promotes the development of the CXO industry and allows pharmaceutical companies, R&D institutions or scholars to become drug listings.
The license holder can entrust other pharmaceutical companies to produce drugs and assume the main legal responsibility for the quality of drug production and sales
.
Data source: compilation of public information
According to public statistics, the clinical phase I CRO service has been reduced by 22 weeks, the clinical phase II has been reduced by 58 weeks, and the clinical phase III has been reduced by 52 weeks
.
CRO services help pharmaceutical companies reduce time costs during the clinical research period.
Pharmaceutical companies can focus on developing their own distinctive businesses, optimizing their own smile curve, and maximizing benefits
.
.
CRO services help pharmaceutical companies reduce time costs during the clinical research period.
Pharmaceutical companies can focus on developing their own distinctive businesses, optimizing their own smile curve, and maximizing benefits
.
The accelerated growth in the number of new drug INDs reflects the high demand for innovative drugs in China
.
Data shows that the number of domestic new drug INDs was 337 in 2019, an increase of 121 compared to 2018, maintaining rapid growth
.
Among them, the number of domestically produced drug INDs was 202, and the number of biological drugs was 135, both of which have increased significantly compared with 2018, indicating that domestic pharmaceutical companies have continued to increase their willingness and investment in new drug research and development in 2019, which has promoted the development of the domestic CXO industry
.
.
Data shows that the number of domestic new drug INDs was 337 in 2019, an increase of 121 compared to 2018, maintaining rapid growth
.
Among them, the number of domestically produced drug INDs was 202, and the number of biological drugs was 135, both of which have increased significantly compared with 2018, indicating that domestic pharmaceutical companies have continued to increase their willingness and investment in new drug research and development in 2019, which has promoted the development of the domestic CXO industry
.
Figure 4: Statistics on the number of domestic new drug INDs
The development trend of China's CXO industry
Small molecule drug R&D companies are facing business transformation
.
.
From the perspective of the composition of new drugs approved by the FDA, small molecule drugs still occupy the main market
.
In 2020, small molecules accounted for more than 70% of the drugs approved by the FDA, but the proportion has been declining year by year, while the proportion of macromolecular drugs is gradually increasing
.
.
In 2020, small molecules accounted for more than 70% of the drugs approved by the FDA, but the proportion has been declining year by year, while the proportion of macromolecular drugs is gradually increasing
.
However, from the perspective of sales scale, the sales scale of small molecule drugs will account for 46% in 2020.
Compared with 70% of the sales of small molecule drugs in 2015, the sales scale has shrunk and decreased year by year
.
Competition in the small molecule drug industry has intensified, and new drug varieties have increased, but the number of single drug sales has declined, indicating that pharmaceutical companies have reduced their willingness to sell small molecule drugs
.
This will lead to a reduction in the demand for outsourcing of R&D and production of small molecule drugs by pharmaceutical companies, which in turn restricts the development of small molecule drugs
.
Compared with 70% of the sales of small molecule drugs in 2015, the sales scale has shrunk and decreased year by year
.
Competition in the small molecule drug industry has intensified, and new drug varieties have increased, but the number of single drug sales has declined, indicating that pharmaceutical companies have reduced their willingness to sell small molecule drugs
.
This will lead to a reduction in the demand for outsourcing of R&D and production of small molecule drugs by pharmaceutical companies, which in turn restricts the development of small molecule drugs
.
From the perspective of TOP20 drugs by global drug sales in 2020, the advantages of the number of varieties and sales of macromolecules are more obvious
.
13 kinds are macromolecular drugs and 7 kinds are small molecule drugs
.
Small molecule drug revenue accounted for only 36.
21%, while macromolecular drug revenue accounted for a record high of 63.
79%
.
.
13 kinds are macromolecular drugs and 7 kinds are small molecule drugs
.
Small molecule drug revenue accounted for only 36.
21%, while macromolecular drug revenue accounted for a record high of 63.
79%
.
Figure 5: 2020 global drug sales TOP20 drugs
Therefore, small-molecule drug companies face the fiercely competitive small-molecule market and need to consider following the trend of large-molecule drugs and transforming their businesses to increase business revenue
.
.
It will become a new development trend for CXO enterprises to build a one-stop service platform
.
The one-stop service platform runs through the entire process of new drug R&D and production, forming a CRO+CDMO model, and expanding the business scope of the enterprise
.
.
The one-stop service platform runs through the entire process of new drug R&D and production, forming a CRO+CDMO model, and expanding the business scope of the enterprise
.
One-stop service platform refers to providing customers with integrated production services in the entire process of new drug R&D and production, meeting the production needs of customers throughout the drug life cycle, improving customer R&D efficiency, expanding business scope, reducing customer acquisition costs for CXO companies, and enhancing Customer stickiness
.
Enterprises can develop a one-stop service platform through two ways of investment, self-construction and enterprise mergers and acquisitions
.
For example, leaders in the CDMO industry such as WuXi AppTec have adopted the method of mergers and acquisitions to expand their business scope and extend to the CRO service field, further becoming the leader in the pharmaceutical CXO industry
.
.
Enterprises can develop a one-stop service platform through two ways of investment, self-construction and enterprise mergers and acquisitions
.
For example, leaders in the CDMO industry such as WuXi AppTec have adopted the method of mergers and acquisitions to expand their business scope and extend to the CRO service field, further becoming the leader in the pharmaceutical CXO industry
.
On the one hand, it can supplement its own business gaps by acquiring companies with technological advantages; on the other hand, it can expand its production capacity and enhance its production strength by acquiring idle production capacity of large pharmaceutical companies.
At the same time, it can enter new markets by acquiring local production capacity
.
For example, Avara has successively acquired the factories of large pharmaceutical companies such as AstraZeneca, Astellas, Utimes, Merck, Pfizer, GSK and other large pharmaceutical companies, and the market continues to expand
.
At the same time, it can enter new markets by acquiring local production capacity
.
For example, Avara has successively acquired the factories of large pharmaceutical companies such as AstraZeneca, Astellas, Utimes, Merck, Pfizer, GSK and other large pharmaceutical companies, and the market continues to expand
.
Building a one-stop drug R&D and production platform is an effective measure for CXO companies to improve efficiency, and it is also the development trend of the pharmaceutical CXO industry
.
Its advantage is to track the entire process of drug research and development, facilitate traceability, and improve efficiency.
At the same time, the cooperation between various sectors to expand the scale of advantages and enhance the profitability of the company
.
WuXi AppTec and WuXi Biologics are currently the world's leading companies in the platformization of small molecules and macromolecules
.
.
Its advantage is to track the entire process of drug research and development, facilitate traceability, and improve efficiency.
At the same time, the cooperation between various sectors to expand the scale of advantages and enhance the profitability of the company
.
WuXi AppTec and WuXi Biologics are currently the world's leading companies in the platformization of small molecules and macromolecules
.
AI technology will be applied to the entire process of new drug research and development
.
At present, large CXO companies have cooperated with AI companies.
AI technology has become an important part of the development of the pharmaceutical CXO industry.
AI technology can be used in five stages of drug discovery, preclinical research, clinical trials, drug production and sales promotion, and runs through the entire new drug research and development.
Production and sales links
.
Mainly used in nine scenarios of target discovery, compound synthesis, new indication discovery, compound screening, crystal form prediction, patient recruitment, optimization of clinical trial design, drug inspection, academic promotion, and AI through deep learning, machine learning, and image recognition Technology to improve the efficiency of drug R&D, production and sales.
WuXi AppTec and Insilico Medicine, Proton and Jingtai Technology have all cooperated, and the cooperation in the field of drug intelligent development has been at the forefront of the world
.
.
At present, large CXO companies have cooperated with AI companies.
AI technology has become an important part of the development of the pharmaceutical CXO industry.
AI technology can be used in five stages of drug discovery, preclinical research, clinical trials, drug production and sales promotion, and runs through the entire new drug research and development.
Production and sales links
.
Mainly used in nine scenarios of target discovery, compound synthesis, new indication discovery, compound screening, crystal form prediction, patient recruitment, optimization of clinical trial design, drug inspection, academic promotion, and AI through deep learning, machine learning, and image recognition Technology to improve the efficiency of drug R&D, production and sales.
WuXi AppTec and Insilico Medicine, Proton and Jingtai Technology have all cooperated, and the cooperation in the field of drug intelligent development has been at the forefront of the world
.
Concluding remarks
Concluding remarks At present, the domestic "endogenous + outsourcing" continues to promote production capacity construction, and all CXO companies are accelerating production capacity deployment and rapidly improving their ability to accept orders
.
The number of projects and customers of WuXi AppTec, Kanglong Chemical and Jiuzhou Pharmaceutical have all grown rapidly
.
The production capacity is gradually increasing, and the performance is reflected in the continuous increase in the number of commercial projects
.
Compared with 2019, WuXi AppTec, Gloria, and Proton have all achieved an orderly increase in the number of commercialization in 2020
.
.
The number of projects and customers of WuXi AppTec, Kanglong Chemical and Jiuzhou Pharmaceutical have all grown rapidly
.
The production capacity is gradually increasing, and the performance is reflected in the continuous increase in the number of commercial projects
.
Compared with 2019, WuXi AppTec, Gloria, and Proton have all achieved an orderly increase in the number of commercialization in 2020
.
When pharmaceutical companies choose long-term partners, they will be more inclined to choose leading companies with good reputation, strong technology, and high-quality services.
Superimposed on the continuous high demand for CXO, it is expected that leading CXO companies will maintain a high base and high growth trend
.
Superimposed on the continuous high demand for CXO, it is expected that leading CXO companies will maintain a high base and high growth trend
.
In the future, macromolecules will become the main battlefield.
CXO companies need to follow the trend of macromolecular drugs and make transformations as soon as possible to maintain their sustainability and enhance their core competitiveness
.
Medicine, medicine, medicine CXO companies need to follow the trend of macromolecular drugs and make transformations as soon as possible to maintain their sustainability and enhance their core competitiveness
.
