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    Home > Active Ingredient News > Drugs Articles > The R&D of pharmaceutical companies has accelerated the promotion of R&D outsourcing, and the business model of "pharmaceutical outsourcing services" has changed!

    The R&D of pharmaceutical companies has accelerated the promotion of R&D outsourcing, and the business model of "pharmaceutical outsourcing services" has changed!

    • Last Update: 2021-05-09
    • Source: Internet
    • Author: User
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    Increased demand for R&D outsourcing of medium and large pharmaceutical companies

    From the perspective of the whole society, the cost of drug research and development has increased, the research and development cycle has been lengthened, and the difficulty has increased, the rate of return on drug research and development has continued to decline, coupled with the concentrated outbreak of patent cliffs.


    At the same time, for small and medium-sized biotechnology companies with light assets, CXO can better take advantage of engineer dividends and complete industrial chain advantages to undertake industrial transfer business, reducing the financial pressure that small and medium-sized enterprises face in the process of growth.


    From the perspective of China's development, benefiting from the rigid demand of the pharmaceutical industry, the increasing aging of the population, and the increasing demand for medicines from patients, as the Chinese government increasingly attaches importance to the standardized and high-quality development of the pharmaceutical industry.


    On the one hand, domestic drug review reforms have improved audit speed and consistency evaluation, and policies such as volume procurement, DRGs, and MAH have been continuously promulgated, prompting domestic pharmaceutical companies to shift from the era of generic drugs to the era of local innovative drugs.


    On the other hand, due to China's accession to ICH, domestic enterprises have been continuously in line with international standards in terms of technology and quality systems, and regulatory and policy changes have encouraged imported drugs.


    In short, the emergence of CXO is to solve the contradiction between the high clinical demand for new drugs and the increasing R&D costs.


    In order to solve the problems of long R&D investment cycle, high cost and low success rate faced by pharmaceutical companies, as well as an industrial environment with stricter management and fierce competition, medium and large pharmaceutical companies and emerging innovative drug R&D institutions are gradually improving the efficiency of new drug R&D.


    02

    Vertical integration of domestic CXO industry, iterative innovation of business model

    my country's CXO industry started late, and companies mostly focus on pre-clinical research services with fierce market competition.


    Other companies that focus on a certain segment are also expanding to other links in the industry chain.


    As pharmaceutical companies are upstream customers of CXO, CXO often crosses business with them in the process of integrated development.


    In the traditional model, represented by "one-off orders", one-handed payment and one-handed delivery, mainly to provide functional services, CXO companies bear low risks, but at the same time, the benefits are also low.


    In recent years, as the enthusiasm for pharmaceutical research and development has increased, CXO has begun to explore innovative cooperation models and gradually shift to long-term strategic cooperation.


    Under the strategic cooperation model, on the one hand, the R&D costs and failure risks of pharmaceutical companies are reduced, and on the other hand, CXO companies are deeply involved in drug research and development.


    At the same time, because CRO companies have accumulated valuable R&D experience and the latest developments in subdivisions at home and abroad through in-depth cooperation with pharmaceutical companies during the completion of their own projects, a column of pharmaceutical investment has appeared in the CXO corporate expense list in recent years.
    .

    Leading domestic CXO companies participate in equity investment in innovative drugs, preface technology platforms, etc.
    through their own funds or cooperative industrial funds and other models.
    WuXi AppTec and Tigermed are the most active.
    The two companies gradually penetrated into the country through M&A fund models.
    In cutting-edge technologies such as the CXO industry chain, innovative drugs/medical devices, and other cutting-edge technologies, such as Tigermed Pharmaceuticals announced on March 30, 2021, it has won five new fund LPs with 520 million yuan, and continues to deploy the development of the entire biomedical industry.





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