Cro company will benefit from the growth background of the whole industry, and the development space is promising

[pharmaceutical network market analysis] in recent years, the medium and long-term trend of pharmaceutical stocks has become the focus of market attention In the long run, with the aging of the population, medicine is just needed, and with the upgrading of people's consumption level and the strengthening of health care awareness, the demand for medicine will continue to grow steadily However, industry insiders also said that there are many subdivisions of medicine, including innovative medicine, traditional Chinese medicine, biological products, medical services, etc., and the fundamentals of individual pharmaceutical stocks are also uneven, which cannot be generalized At present, CrO (medical service) segment is a promising industry in the industry, which is mainly based on the end of the era of high profit growth of generic drugs, and innovative drugs become the development direction of the industry, while domestic innovative drugs cannot do without the support of cro business From the perspective of the gradual normalization of centralized procurement, the acceleration of drug approval and review, and the encouragement of innovative drug development, the current state supports innovative drugs, and the future innovative drugs and their research and development will be a long-term trend In addition, the reform and innovation of science and technology innovation board bring great resources and development assistance to science and technology innovation enterprises, which can make the company really calm down to do scientific research and promote the development of innovative drugs However, at present, most of the enterprises making innovative drugs are small-scale enterprises with limited capital and weak technology However, the production of innovative drugs needs more complicated steps such as clinical experiments, with long cycle, high cost and high risk The industry believes that if small enterprises do not have the energy to do clinical experiments and other work, they will choose a more professional cro company to do it, so cro companies will benefit from the growth background of the whole industry According to the forecast of Frost & Sullivan report, it is predicted that by 2022, the cro market size in China will reach 23.3 billion US dollars, with an average compound growth rate of about 20.4% in 2018-2022 It can be seen that China's cro industry is ushering in a "golden age" At present, domestic cro companies include nearly 40 listed companies engaged in medical service sector, such as Wuxi apptec, KANGLONG Huacheng, medesi and boten With the continuous improvement of industry concentration, leading companies with advantages are emerging, including Wuxi apptec, tag pharmaceutical, KANGLONG Huacheng, Zhaoyan new drug, etc Among them, Wuxi apptec's main business includes four parts: laboratory services in China, contract production R & D / contract production services (cdmo / CMO), laboratory services in the United States, clinical research and other cro services, which run through the whole industrial chain of drug discovery, pre clinical development, clinical research and commercial production In 2018, the company's revenue reached 9.314 billion yuan From 2016 to 2018, the compound growth rate of Wuxi apptec's revenue and deducting non attributable net profit was 25.3% and 105.4% respectively The company's business has completely covered the whole industry chain of clinical research and participated in more than 100 clinical trials of innovative drugs in China The company expects that the net profit attributable to shareholders of Listed Companies in 2019 will be 800-900 million yuan, up 68.45% - 91.13% year on year At present, KANGLONG chemical has become a cro + CMO company based on China and serving the whole world According to the 2019 performance forecast issued by the company, it is estimated that the net profit attributable to the parent (after the adjustment of the new accounting standards) in 2019 will be 523-556 million yuan, up 57-67% year on year Zhaoyan new drug Co., Ltd is a leading enterprise of safety evaluation service of preclinical cro in China Its main business includes preclinical research service of drugs and reproduction and sales of experimental animals, among which preclinical research service of drugs is the core business of the company The company expects a net profit of 152-173 million yuan in 2019, an increase of 43.33-65 million yuan over the same period of last year, a year-on-year increase of 40% - 60%.