The development of the domestic pharmaceutical outsourcing industry continues to be prosperous, and a large number of companies will benefit

In recent years, with the growth of labor and environmental protection costs in overseas markets, global innovative drug outsourcing services are shifting to emerging Asian markets such as China; and the industrial chain of new drug R&D and production has continued to become more complex and refined, resulting in increased costs and increased R&D difficulties.
The boom of the domestic pharmaceutical outsourcing industry is constantly improving, and related companies are beginning to welcome more benefits
.
It is reported that on November 30th, the domestic pharmaceutical outsourcing giant Boton issued an announcement stating that the company received a new batch of "Purchase Orders" from a large US pharmaceutical company, which was a CDMO order related to a small molecule innovative drug from a customer , The total order size is about 217 million U.
S.
dollars, more than 50% of the company's operating income last year
.
It is understood that Proton is a custom-made pharmaceutical contract R&D and manufacturing (CDMO) company, which mainly provides global pharmaceutical companies and new drug R&D institutions with chemical drugs, biological drugs, and drugs needed for the entire life cycle from clinical early research to drug listing.
Customized formulation R&D and production services
.
In addition, Kailaiying also stated in its recent prospectus that as of the third quarter of 2021, the company has cooperated with 15 of the world's top 20 pharmaceutical factories, of which 8 have been cooperating continuously for more than ten years
.
It is worth mentioning that, according to Kailaiying, the company's various data have also been increasing steadily in the past three years
.
In terms of revenue, it reached 1.
82 billion yuan in 2018, 2.
45 billion yuan in 2019, and 3.
14 billion yuan in 2020
.
In the past three years, most of the revenue was occupied by the US market, which once accounted for 83%
.
The industry believes that more and more local pharmaceutical manufacturing outsourcing companies continue to improve their performance, which actually benefits from two aspects
.
First of all, from the perspective of demand, the global CMO/CDMO market is mainly concentrated in developed markets such as Europe, the United States, and Japan.
However, with the increase in labor and environmental costs in these countries, global innovative drug outsourcing services have gradually begun to expand to Asia such as China.
Emerging markets are shifting, and this brings more opportunities to the domestic pharmaceutical outsourcing industry
.
In addition, with the intensification of aging and the upgrading of consumption levels, the domestic pharmaceutical market demand has also begun to show an explosive trend.
Under a series of policies that encourage pharmaceutical innovation such as the speeding up of new drug approvals, local innovative drugs continue to rise, and they are also serving the domestic pharmaceutical outsourcing market.
Bring more room for development
.
Industry insiders predict that benefiting from multiple benefits, the market size of China's pharmaceutical outsourcing industry may reach US$244 billion in 2025
.
In this context, the performance of related companies will also have more room for development
.
In general, China's pharmaceutical industry is entering a golden age.
Knowledge and data are integrated, technology and medical are integrated.
The future new drug research and development model will usher in a new definition and far-reaching change, and the pharmaceutical outsourcing service industry will also usher in a new era.
Development opportunities
.
At present, many pharmaceutical outsourcing service companies in China have stated that they will continue to invest heavily to strengthen their service capabilities
.
Among them, it is worth noting that the expansion of production capacity is clearly becoming the main choice of pharmaceutical outsourcing service companies
.
It is reported that in August of this year, Boten said it planned to acquire Yuyang Pharmaceutical for 172 million yuan to expand its production capacity
.
After the transaction is completed, the company will have 3 chemical raw material drug CDMO production bases, and the production capacity will be further expanded to 2000m³
.