The CRO market continues to expand, and the "involution" of local companies is also continuing to intensify

[Pharmaceutical Network Market Analysis] CRO mainly serves the biopharmaceutical industry.
Therefore, the growth of the CRO sector is inseparable from the development of innovative drugs.
Benefiting from favorable policies and capital, China's innovative drugs have entered the fast lane since 2017, and the CRO industry has It also developed rapidly
.

According to data, the scale of China's CRO industry has grown from 13.
6 billion yuan in 2011 to 67.
8 billion yuan in 2018, with an average annual compound growth rate (CAGR) of more than 20%, and the CAGR will probably remain at 20% to 25% in the next three years.
%
.

According to industry estimates, by 2023, China's CRO market is expected to reach $17.
2 billion
.

With the continuous expansion of the market scale, domestic CRO companies have naturally ushered in good news
.

It is understood that as of now, among the CRO pharmaceutical companies that have disclosed their semi-annual reports, many of them have achieved outstanding performance, such as Asymchem, Proton, etc.
, and their performance growth has exceeded 100%
.

Among them, Proton shares is expected to achieve a net profit of 1.
191 billion yuan to 1.
212 billion yuan in the first half of the year, a year-on-year increase of 455%-465%
.

Asymchem's semi-annual performance forecast released on the evening of July 14 shows that it is expected to achieve a net profit of 1.
644 billion yuan to 1.
743 billion yuan, a year-on-year increase of 282.
99% to 305.
97%
.

WuXi PharmaTech's performance in the first half of the year also exceeded expectations, with profit growth exceeding 68%
.

 　　In addition, the performance of Haite Bio, Zhaoyan New Drug, and Kyushu Pharmaceuticals are also expected to increase, and the performance growth in the first half of the year all exceeded 20%
.

It can be seen from the above that the overall performance of the interim report of the leading companies in the CXO sector is relatively good, and there is still the certainty of continuous high-speed growth in the future with sufficient orders in hand
.

The industry predicts that with the rapid development of China's emerging pharmaceutical market and more and more multinational pharmaceutical companies entering China's pharmaceutical market, CRO head companies may have more development opportunities
.

 　　However, compared with developed countries, the development of China's CRO industry is still in its infancy.
There is a huge space for development, but it also faces many challenges
.

For example, the CRO industry currently has problems such as high technical barriers, lack of professional talents, and intensified market competition
.

 　　It is understood that in recent years, the number of domestic CRO companies has been increasing, and the market "involution" has been increasing
.
According
to incomplete statistics, the total number of domestic CRO companies has exceeded 500.

Among
them, except for some companies in the pharmaceutical field, Many companies are still trying to explore across borders
.

 　　For example, Canaan Technology has invested tens of millions of yuan in the improvement of CRO R&D capabilities and the upgrading of testing equipment
.

On December 17, 2021, Canaan Technology released a new research report.
The Chinese reply agency stated that the company's pharmaceutical R&D service business operation carrier is the wholly-owned subsidiary company Bison Pharmaceuticals
.

At present, the company has initially formed a relatively complete pharmaceutical R&D and testing system
.

 　　Disclaimer: In any case, in this article The information or opinions expressed do not constitute investment advice to anyone
.