At present, domestic CXO enterprises are mainly CRO/CMO, providing research and production services for pharmaceutical enterprises, including CDMO (D: Development /M: Manufacturing) and other comprehensive services. Among them, CRO can be divided into preclinical CRO and clinical CRO. The preclinical CRO business is mainly aimed at the preclinical research stage of drugs, including target determination, discovery and optimization of lead compounds, determination of candidate drugs, animal experiments and so on. Domestic A-share companies engaged in preclinical CRO business include WuXi PharmaTech, Kanglong Chenghua, Quantum Biology, Medici, Zhao Yan New Drugs, etc. Clinical CRO is mainly aimed at the clinical trial stage of drugs. Domestic A-share companies engaged in clinical CRO business include Tiger Medicine and Ji Bo Medicine. Domestic A-share companies engaged in CDMO/CMO business include Wuxi PharmaTech, Gloria, Boteng and some API companies. The core competence of CRO business is the number of employees, and the core competence of CDMO/CMO business is the number of fixed assets.
Generally speaking, CXO has solved the dilemma of R&D strength, limited marketing ability and high circulation cost of innovative drug enterprises.
CXO industry
CXO industry includes CRO (Contract R&D Service Organization) /CMO (Contract R&D and Production Business Organization), that is, through contract outsourcing, entrusted by pharmaceutical companies or biotechnology companies, it provides specialized R&D services in the process of drug R&D, and provides process development, raw materials and intermediates production and preparation production required for product production.
To develop a new drug, pharmaceutical companies have to go through four stages: drug discovery, preclinical research, clinical experiment and new drug listing, before they can complete the whole process.
CRO's business is mainly concentrated in three parts. One is preclinical research, including target determination, discovery and optimization of lead compounds, determination of candidate drugs, animal experiments and so on. The second is clinical experiment, that is, practical research on human body, to investigate the administration scheme, safe dose, curative effect and side effects of drugs. The third is to assist pharmaceutical companies to do a series of declaration work.
The core competence of CRO business is the number of employees, and the core competence of CDMO/CMO business is the number of fixed assets.
The prosperity of CXO industry continues to improve, mainly due to the sustained and rapid growth of global investment in new drug research and development and the impact of costs and other factors.
Overseas R&D outsourcing demand continues to shift to the Asia-Pacific region, and domestic medical policies force pharmaceutical companies to increase investment in innovative R&D.
First of all, the income of CXO industry comes from the research and development expenditure of pharmaceutical companies and biotechnology companies. In the past few years, the top 30 pharmaceutical companies in the world have all developed.
Investment continued to maintain a growth rate of around 5%. The willingness of biotechnology companies to invest in R&D mainly depends on their financing situation. 17- 19 years, the investment and financing amount of American medical industry reached177,224 and1980 million US dollars respectively, which was significantly higher than the average level of100-1200 million US dollars in previous years. Secondly, the value of CXO industry lies in helping pharmaceutical companies reduce the cost in the process of drug research and development and production, so the CXO industrial chain will inevitably gradually shift to low-cost areas. According to Jost Sullivan's data, with the rapid growth of the number of bachelor's degree graduates, it is estimated that the global share of CRO in North America will drop from 50% in 20 15 to 44.8% in 202 14, while the share in Asia-Pacific will increase from 12.9% in 20 18 to. Finally, since 15, the domestic pharmaceutical industry policy has been continuously reformed to encourage innovation. Driven by the policy, the R&D expenditure of domestic pharmaceutical companies continues to grow, gradually shifting from generic drugs to drugs that are difficult to imitate, and then to innovative drugs, from me to me. The prosperity of CXO industry is expected to continue to benefit from the research and development of innovative drugs.