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CXO refers to a series of outsourcing activities in the process of drug research and development, clinical trials, production and marketing
.
According to the upstream and downstream logic of the industrial chain, it is mainly divided into CRO, CDMO/CMO and CSO, which serve the three links of R&D outsourcing, production outsourcing and sales outsourcing in the pharmaceutical industry respectively
.
In recent years, the global innovative drug industry has developed rapidly, but new drug R&D has the characteristics of high risk, high investment, and long return period.
In order to speed up the efficiency of new drug R&D, more and more pharmaceutical companies choose to outsource, and the domestic CXO industry has ushered in rapid development.
period
.
The prosperity of the domestic CXO industry will continue, but there are still two major challenges
.
The Chinese CRO market has benefited from the rise of innovative drugs and the transfer of demand for international orders.
The growth rate has become more obvious in recent years.
It is estimated that the domestic CRO market share will account for about 14% of the global CRO market in 2024.
Another example is the CDMO field, the current global CDMO market in China The share has been higher than that of India and other emerging markets, making it the third exporter of CDMO capacity
.
With the accelerated transfer of global production capacity to emerging countries, it is expected that China's CDMO market share is expected to further increase
.
In addition to the transfer of overseas production capacity, looking at domestic factors, under the background of the general trend of pharmaceutical innovation, the prosperity of the domestic CXO industry is also continuously improving
.
Some analysts said that the R&D capabilities of traditional pharmaceutical companies that started with generic drugs are relatively weak, and there will be further demand for CXO in the future
.
In addition, innovative small and medium-sized enterprises such as Biotech have rigid demand for CXO, which will bring incremental market to CXO enterprises
.
The industry predicts that the prosperity of the domestic CXO industry is expected to continue in the next few years
.
Facing the booming CXO market, a large number of domestic pharmaceutical companies including WuXi Biologics, WuXi AppTec, and Asymchem are actively deploying
.
However, not all companies in the CXO field can get a share of the market "cake", and they need to face at least two challenges
.
Among them, production capacity is an important factor that determines the scale of business development of CXO enterprises, and it has become a major bottleneck that cannot be ignored in the process of accelerated expansion of domestic CXO enterprises
.
At present, capacity construction has also been put on the agenda by various companies, including WuXi AppTec, Pharmaron and other CXO giants are accelerating capacity expansion to ensure that they can gain more market share in the future
.
For example, WuXi PharmaTech, a subsidiary of WuXi PharmaTech, has started construction of a R&D and production base for cell therapy and gene products in Lingang, Shanghai.
The base has a designed production capacity of 15,300 square meters.
After completion, it will become the company's second cell and gene product in China.
Production site for gene therapy; subsidiary Hequan Pharma acquired BMS’s production site in Kuwait, Switzerland, to enable mass production of capsules and tablets
.
In the context of domestic CXO companies accelerating capacity expansion, the industry believes that the upstream pharmaceutical equipment market in the biopharmaceutical industry will also usher in new opportunities and have a large space for development
.
In addition to production capacity challenges, the lack of professional talents is also a problem faced by domestic CXO companies
.
Since CXO is a labor-intensive industry, there is a greater demand for manpower
.
However, according to survey data, more than 30% of CXO companies are facing the bottleneck of lack of qualified professionals
.
According to the 2021 interim reports of major companies, the top CXO companies in terms of employees include WuXi, Pharmaron, Tigermed and Asymchem, with 36,000, 12,000, 7,208, and 5,600 employees respectively
.
In addition, the number of employees is around 1,000 to 3,000, including Proton, Zhaoyan New Drug and Medicil
.
From the perspective of the ratio of R&D personnel to total employees, WuXi AppTec has a relatively high proportion of R&D personnel, reaching 95.
63%, followed by Tigermed, accounting for 91.
15%
.
Disclaimer: Under no circumstances does the information or opinions expressed in this article constitute investment advice to anyone
.
.
According to the upstream and downstream logic of the industrial chain, it is mainly divided into CRO, CDMO/CMO and CSO, which serve the three links of R&D outsourcing, production outsourcing and sales outsourcing in the pharmaceutical industry respectively
.
In recent years, the global innovative drug industry has developed rapidly, but new drug R&D has the characteristics of high risk, high investment, and long return period.
In order to speed up the efficiency of new drug R&D, more and more pharmaceutical companies choose to outsource, and the domestic CXO industry has ushered in rapid development.
period
.
The prosperity of the domestic CXO industry will continue, but there are still two major challenges
.
The Chinese CRO market has benefited from the rise of innovative drugs and the transfer of demand for international orders.
The growth rate has become more obvious in recent years.
It is estimated that the domestic CRO market share will account for about 14% of the global CRO market in 2024.
Another example is the CDMO field, the current global CDMO market in China The share has been higher than that of India and other emerging markets, making it the third exporter of CDMO capacity
.
With the accelerated transfer of global production capacity to emerging countries, it is expected that China's CDMO market share is expected to further increase
.
In addition to the transfer of overseas production capacity, looking at domestic factors, under the background of the general trend of pharmaceutical innovation, the prosperity of the domestic CXO industry is also continuously improving
.
Some analysts said that the R&D capabilities of traditional pharmaceutical companies that started with generic drugs are relatively weak, and there will be further demand for CXO in the future
.
In addition, innovative small and medium-sized enterprises such as Biotech have rigid demand for CXO, which will bring incremental market to CXO enterprises
.
The industry predicts that the prosperity of the domestic CXO industry is expected to continue in the next few years
.
Facing the booming CXO market, a large number of domestic pharmaceutical companies including WuXi Biologics, WuXi AppTec, and Asymchem are actively deploying
.
However, not all companies in the CXO field can get a share of the market "cake", and they need to face at least two challenges
.
Among them, production capacity is an important factor that determines the scale of business development of CXO enterprises, and it has become a major bottleneck that cannot be ignored in the process of accelerated expansion of domestic CXO enterprises
.
At present, capacity construction has also been put on the agenda by various companies, including WuXi AppTec, Pharmaron and other CXO giants are accelerating capacity expansion to ensure that they can gain more market share in the future
.
For example, WuXi PharmaTech, a subsidiary of WuXi PharmaTech, has started construction of a R&D and production base for cell therapy and gene products in Lingang, Shanghai.
The base has a designed production capacity of 15,300 square meters.
After completion, it will become the company's second cell and gene product in China.
Production site for gene therapy; subsidiary Hequan Pharma acquired BMS’s production site in Kuwait, Switzerland, to enable mass production of capsules and tablets
.
In the context of domestic CXO companies accelerating capacity expansion, the industry believes that the upstream pharmaceutical equipment market in the biopharmaceutical industry will also usher in new opportunities and have a large space for development
.
In addition to production capacity challenges, the lack of professional talents is also a problem faced by domestic CXO companies
.
Since CXO is a labor-intensive industry, there is a greater demand for manpower
.
However, according to survey data, more than 30% of CXO companies are facing the bottleneck of lack of qualified professionals
.
According to the 2021 interim reports of major companies, the top CXO companies in terms of employees include WuXi, Pharmaron, Tigermed and Asymchem, with 36,000, 12,000, 7,208, and 5,600 employees respectively
.
In addition, the number of employees is around 1,000 to 3,000, including Proton, Zhaoyan New Drug and Medicil
.
From the perspective of the ratio of R&D personnel to total employees, WuXi AppTec has a relatively high proportion of R&D personnel, reaching 95.
63%, followed by Tigermed, accounting for 91.
15%
.
Disclaimer: Under no circumstances does the information or opinions expressed in this article constitute investment advice to anyone
.
