The CRO sector continues to rise! Kailai Ying rose to the limit, and many stocks rose more than 8%

【Pharmaceutical Network Pharmaceutical Stock Market】On January 16, the CRO sector continued to rise, as of 14:35 on the 16th, Kailaiying's A shares rose to the limit, H shares once rose by more than 15%, Viva Biologics rose by more than 14%, WuXi AppTec rose by more than 8%, and Zhaoyan New Drug rose by more than 5%.

Specifically, as of 14:35 on January 16, Kailaiying's A shares rose to the limit, with a quotation of 167.
75 yuan, a turnover of 1.
512 billion, a turnover rate of 2.
83%, and a price-earnings (TTM) of 20.
05
.
At the same time, Kailaiying's H shares once rose by more than 15%, achieving AH shares to fly
.
For the reasons for the change in the stock, the analysis believes that it is mainly affected
by the API CDMO+ innovative drug.
The company is a one-stop comprehensive service provider of CDMO serving the R&D and production of new drugs, mainly providing efficient and high-quality R&D and production services for large and medium-sized pharmaceutical enterprises and biotechnology companies at home and abroad, and promoting the clinical research and commercial application
of innovative drugs.
At present, it has realized the coordinated development
of multi-sector business such as small molecule CDMO, chemical macromolecule CDMO, preparation, CRO, biological drug CDMO, polymer and high-end excipients.
Zheshang Securities said in a recently released research report that looking forward to 2023-2025, the proportion of revenue from commercial projects of the company is still expected to remain at a high proportion (benefiting from the continuous entry of commercialized 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
.
Moreover, the company's small molecule CDMO business is still expected to enter a new round of accelerated development under the continuous commercialization and the rapid development of emerging businesses
.
As of 14:35 on January 16, Viva Biotech rose 14.
97%, with a quotation of HK $2.
150, a turnover of 131 million, a turnover rate of 3.
17%, and a price-to-earnings (TTM) of 31.
96
.
According to the data, Viva Biotech is a domestic drug discovery outsourcing service company, providing structure-based drug discovery services for biopharmaceutical customers, including the expression and structure study of target proteins, drug screening, lead compound optimization and identification of clinical candidates
.
As of 14:35 on January 16, WuXi AppTec rose 8.
05%, quoted 98.
33 yuan, with a turnover of 4.
620 billion, a turnover rate of 1.
87%, and a price-to-earnings (TTM) of 32.
66
.
A few days ago, Zheshang Securities said in the report that WuXi AppTec, as a local CXO head enterprise with global expansion, is expected to exceed expectations
.
Supporting factors include globally scarce integrated business models, the funnel effect has been verified; The global production capacity layout of small molecules, new business development is expected to continue to improve the development ceiling
.
As of 14:35 on January 16, Zhaoyan New Drug rose 5.
29%, with a quotation of 67.
48 yuan, a turnover of 618 million, a turnover rate of 2.
05%, and a price-to-earnings (TTM) of 38.
39
.
According to the data, Zhaoyan New Drug is a leading enterprise in the preclinical evaluation of domestic drugs, and West China Securities has judged that in the next 3-5 years, the company will benefit from the prosperity of domestic innovative drug research and development and the expansion of market space brought by internationalization to maintain rapid growth
.
China Post Securities recently pointed out that from the perspective of CXO market performance, on December 21, 2022, the CXO index began to bottom out
.
At the same time, since July 2022, Hong Kong IPO pharmaceutical companies have not broken on the first day of listing, and if CRO companies can usher in demand-side recovery in the next quarter, it is believed that the market will usher in the second phase of linkage, and the attention and excess income of the sector will also increase
rapidly.
In the medium and long term, with the hot research and development of new drugs, and the challenges faced by pharmaceutical companies such as reducing R&D costs, improving R&D efficiency, and shortening R&D time, the domestic CRO industry as a whole will usher in a
stage of rapid development.
According to the data, in China, the drug discovery outsourcing market reached $137.
3 million in 2017 and will increase to $484.
8 million in 2022, with a compound annual growth rate of 28.
7%, and is expected to maintain growth
in the future.
Disclaimer: Under no circumstances does the information or opinions expressed herein constitute investment advice
to anyone.