CXO sentiment funds are good, and in 2023 it is recommended to pay attention to pharmaceutical companies with improved endogenous growth rates

【Pharmaceutical Network Market Analysis】 CXO, or pharmaceutical outsourcing, is a process entrusted by pharmaceutical companies or biotechnology companies to provide them with drug research and development, production process
development, drug production, drug sales and other services.
CXO mainly includes CRO (R&D registration outsourcing), CMO/CDMO (production process outsourcing), and CSO (sales outsourcing).

Looking forward to 2023, the industry said that the CXO sector, emotional funds are good, investment and financing are expected to bottom out, valuation is cost-effective, it is recommended to pay attention to companies with improved endogenous growth rate in 2023 and clinical CROs with repair logic, recommend Kanglong Chemical, Tigermed Pharmaceutical, Novonovo Sunshine, Kaileying, Jiuzhou Pharmaceutical, etc
。 Since its establishment in 2004, Kanglong Chemical has been committed to talent training and facility construction, creating a R&D and production service system
that runs through the whole process of drug discovery, preclinical and clinical development for the research and development of multi-therapy drugs including small molecules, large molecules, and cell and gene therapy drugs.
Currently, Kanglong Chemical has nearly 17,000 employees operating in China, the United States, and the United Kingdom, while providing R&D solutions and maintaining good cooperation
with partners in North America, Europe, Japan and China.
Recently, Kanglong Chemical said in response to investors' questions, 1.
Up to now, the company's domestic small molecule CDMO production capacity is distributed in Beijing, Tianjin, Ningbo, Shaoxing and other parks, and the total reactor volume is about 800 cubic meters
.
2.
The company's macromolecular services include macromolecular drug discovery and development and manufacturing services (CDMO), of which macromolecular drug discovery services include macromolecular drug plasmid design, cell screening, target macromolecule expression and purification, development of target macromolecule analysis methods and their analysis and identification of products, mainly serving the various needs
of cells and proteins, including monoclonal antibodies, in the early stage of research and development.
The company is accelerating the construction of the macromolecule drug CDMO platform and expects that nearly 70,000 square meters of macromolecule drug development and manufacturing service capacity will be put into use
in 2023.
After the capacity is put into use, it will be able to provide cell line and cell culture processes, upstream and downstream production processes, formulation prescription and filling production processes, and analytical method development services, as well as 200L to 2000L scale of pilot to commercial stage of stock solution and formulation production services
。 3.
Cell and gene therapy services include cell and gene therapy laboratory services and gene therapy drug development and manufacturing services (CDMO), of which cell and gene therapy laboratory services include the development and verification of various proteins and cell analysis methods, the development and verification of various DNA and RNA analysis methods, the activity, toxicity, tissue distribution, virus spread analysis of cell and gene products, and the quantitative analysis of cell and gene products.
Meet the special requirements for analytical methods (including compliance with GLP/GCP/GMP regulations)
for cell and gene products in preclinical and clinical development and marketing 。 Gene therapy drug development and manufacturing services (CDMO) include plasmid synthesis containing therapeutic genes, cell line development, cell bank establishment, production process development and optimization, preparation process optimization, mass production of products, analytical method development and verification, identification and analysis of product-related impurities, stability evaluation, product analysis and identification and GMP batch release, etc.
, covering the whole process of gene therapy product process development and its cGMP production CDMO services to support the preclinical safety evaluation of gene products, The need
for Phase I, II, III and post-market product lifecycle management in clinical trials.
Tigermed Tigermed The main business of Tigermed is a contract research organization (CRO) focusing on providing professional services for the whole clinical trial process of new drug research and development, providing comprehensive and integrated clinical research solutions
for global pharmaceutical and medical device innovators.
The company is committed to reducing R&D risks for customers, saving R&D costs, and promoting the process of product marketization
.
It can be seen from the results of recent years that the company's revenue scale continues to expand, and in the first half of 2022, it achieved revenue of 3.
594 billion yuan, a year-on-year increase of 74.
78%.

In recent years, Tigermed has continued to carry out large-scale mergers and acquisitions and expansion
.
Since 2008, the company has successively acquired many domestic and foreign companies such as Mestar, Beijing Kanglihua, Shanghai Shengtong, American Fangda Holdings, Beiyi Renzhi, South Korea's Dream CIS, and Jitong Tairui, which has promoted its performance
.
From 2019 to 2021, the goodwill of Tigermed was 1.
158 billion yuan, 1.
445 billion yuan and 1.
779 billion yuan, respectively, with a year-on-year increase of 12.
09%, 24.
76% and 23.
15%, and 2.
348 billion yuan
in the first half of 2022.
The rapid expansion has also led to a rapid increase
in the number of the company's projects.
The number of ongoing drug clinical programs increased to 607 from 567 at the end of 2021
.
Of these, 207 projects are being carried out
abroad.
The number of single-regional clinical trial projects underway overseas increased from 132 at the end of 2021 to 149; The number of MRCT projects increased from 50 at the end of 2021 to 58
.
Novo Novo is a comprehensive CRO company
focusing on generic and innovative drug research, committed to promoting the development of China's pharmaceutical industry with technical services as the core, and providing customers with "preclinical + clinical" full-process drug research and development services.
From drug discovery, to pharmacological efficacy, pharmaceutical research, to the integration of clinical research resources, Sunnovo has found a convergence point in the construction of the biological sample testing team and successfully created a whole-process CRO service model
.
The company's industry experience involves cardiovascular and cerebrovascular, tumor, digestion, urology, gynecology, endocrinology, nervous system, intrakidney, infection and other fields
.
The company actively develops characteristic core technologies, and has formed a number of characteristic core technology clusters
in difficult research and development fields including special dosage forms, special routes of administration, new compound preparation drug development, peptide and oligonucleotide drug development, complex injection development, pediatric drug and rare disease drug development 。 In terms of innovative drugs, the company's products are mainly used in analgesia, nephropathy and dialysis, tumor assistance, cardiovascular and cerebrovascular, antibacterial drugs and other indications; In terms of improved new drugs, the company carries out technology research and development and industrial transformation research on drug delivery systems, focusing on long-acting microsphere preparations and slow-release preparations; In terms of generic drugs, the company's research products include complex injections, peptide preparations, topical delivery and transdermal absorption drugs, pediatric drugs, rare disease drugs and other special preparations
.
The data shows that in the first half of 2022, 40 drug registration applications were accepted in the projects in which the company participated in research and development; After the implementation of the new drug registration classification regulations, the company has obtained a total of 9 generic drugs with drug registration approval or passed the consistency evaluation
.
As a one-stop integrated solution provider of CDMO, Gloria continues to grow orders, project delivery advances on schedule, and the accelerated growth momentum of emerging business segments is further evident
while maintaining the steady development of small molecule business.
In the first three quarters of 2022, the company's operating income and net profit attributable to shareholders of listed companies both achieved substantial growth
.
Data show that the company is expected to achieve a cumulative operating income of about 7.
8 billion yuan in the first three quarters of 2022, a year-on-year increase of more than 165%; The net profit attributable to shareholders of the listed company was about 2.
7 billion yuan, a year-on-year increase of about 290%.

A new report from an institution said that from the perspective of capacity changes, the company's compound growth rate of revenue is expected to further accelerate to 30%-34%
from 2021 to 2025.
The bank is optimistic about the breakthrough of the market value ceiling under the acceleration of the company's small molecule CDMO and emerging business
.
The agency said that the company's CDMO and emerging business continued to be realized, and the proportion of emerging business in revenue increased rapidly, and the proportion of commercialization remained 50%+
.
The continuous realization of commercialization drives the high growth of small molecule CDMO, the supply is accelerating, and the strong demand is driving the high growth
of emerging businesses.
Looking forward to 2023-2025, the agency believes that the proportion of revenue from commercial projects is still expected to remain at a high proportion (benefiting from the continued entry of commercial projects into the cashing period).

With more production capacity put into use and the continuous explosive growth of the demand side, the proportion of the company's emerging business is expected to continue to increase
.
Jiuzhou Pharmaceutical Recently, Jiuzhou Pharmaceutical said in an institutional survey that the company is currently a strategic supplier of Novartis, and the company undertakes a large number of innovative drug projects at different stages of Novartis every year, of which the API supply of Novartis project accounts for a large proportion, and Nuoxinto is also a product
with a large amount of API delivery in recent years.
With the terminal volume of drugs for the treatment of breast cancer, the production and transfer of APIs for other therapeutic drugs such as leukemia has been completed, and it is expected to enter normal commercial production
next year.
According to the company's semi-annual report, the company has a rich reserve of clinical phase III projects, including many varieties with large expected terminal sales, and as these varieties shift from clinical phase III to commercial listing, the proportion of other non-Novartis projects will increase
year by year in the future.
At present, Jiuzhou Pharmaceutical has completed the construction of peptide R&D platform and team building, and at the same time carried out the construction of peptide commercialization workshop in Ribo Suzhou, the company's future peptide business is mainly overseas large customers, and has undertaken a number of new drug research and innovation companies custom peptide and peptide new drug IND commissioned research and development business, a single variety revenue of tens of millions of levels
.
With the completion of the technical transformation of some workshops and the completion of product registration application next year, the overall capacity utilization rate of drug technology will be further improvedIt will remain between
50% and 60% in the future.
Disclaimer: Under no circumstances does the information or opinions expressed herein constitute investment advice
to anyone.