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    Home > Active Ingredient News > Drugs Articles > Policy and market dividends continue, the pharmaceutical industry "water seller" business climate continues to improve

    Policy and market dividends continue, the pharmaceutical industry "water seller" business climate continues to improve

    • Last Update: 2020-06-16
    • Source: Internet
    • Author: User
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    Pharmaceutical Network Market Analysis: The pharmaceutical outsourcing service industry is known as the "water seller" in the pharmaceutical research and development and production process, and has now developed into a full process throughout the pharmaceutical life cycle, in which CRO, CMO and CSO serve the three major links of research and development, production and sales in the pharmaceutical industryWith the current policy and market dividends, the business climate of China's pharmaceutical outsourcing service industry is constantly improving.
    Policy, in recent years, the domestic policy for the pharmaceutical industry intensive introduction, especially for generic drugs "consistency evaluation", the release of the volume procurement policy, so that the profit margin of generic drugs continue to compress, traditional pharmaceutical companies began to move towards innovative drugs and high-end generics directionAs the market space for innovative medicines gradually opens up, the pharmaceutical outsourcing service industry continues to benefit.
    In addition, on May 14 this year, the State Drug Administration issued the "Announcement on the evaluation of the quality and efficacy of generic drugs for chemical injections", which further brought good opportunities for the pharmaceutical outsourcing service industry.
    The industry pointed out that in the consistency evaluation, many enterprises do not know the clinical declaration process, while the policy of new drug research and development support is very strong, so no research and development capacity of enterprises choose to entrust CRO enterprises;
    On the market, innovative pharmaceutical companies are forced by the rapid rise in the cost of new drug research and development and other factors, many pharmaceutical companies gradually will be small molecule drug research and development and production departments divested and outsourced, more focus on macromolecule drug research and developmentThis has been in the small molecule drug technology development, production field has accumulated technical advantages of domestic CDMO enterprises to bring development opportunities.
    It is understood that the cost of clinical trials in China is 30-60% lower than that of developed countries, which attracts overseas research and development ordersAt the international rule level, in June 2017, China's State Food and Drug Administration joined ICH, further facilitate the development of domestic research and development outsourcing enterprises for foreign enterprises.
    According to Forward-Looking Research Institute, in 2013-2017, China's CRO industry has a CAGR of 24.4% and a CAGR of 27.7% in 2017-2022By 2022, the penetration rate of the CRO industry is expected to reach more than 40%, the industry prospects are broad.
    At present, the A-share market has a representative of the four CRO enterprises for the drug Mingkang, Tyger Pharmaceuticals, ZhaoYan Pharmaceutical, Kanglong into.
    Among them, the drug Ming Kant because of the CRO industry chain of business, the total revenue scale is hugeIn 2019, revenue reached RMB12,872 million, up 33.89 percent Year-on-Year, and net profit was RMB1,855 millionThe company's ability to retain its old customers is good, with 91.2 percent of the company's revenue coming from its existing customers in 2019.
    The main source of revenue from Tiger Pharma is "Clinical Trial-Related Services and Laboratory Services", which will account for 51.8% of total revenue in 2019, at $1.45 billion.
    The business of ZhaoYan new drug is focused on safety assessment in preclinical research, and as of 2019, two clinical Phase I research centers have completed the construction of hardware, personnel, quality systems, and have begun to undertake clinical trial business ZhaoYan new drug in 2019 to achieve operating income of 639 million yuan, the return of the mother net profit of 1.78 yuan, an increase of 64.64 percent year-on-year.
    Kanglonghua is mainly engaged in pre-clinical CRO, the current business scale is small In 2019, operating income reached RMB3.757 billion, up 29.2% YoY, and net profit attributed to the parent was RMB547 million, up 64.3% YoY.
    However, at present, the concentration of China's pharmaceutical outsourcing service industry is still relatively low, the industry believes that, with the GRADUAL intensification of THE CRO market competition, the original business model needs to be changed, the drug research and development upstream and downstream of the entire industrial chain of efficient integration is the future direction of enterprises.
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