"China's Pharmaceutical CDMO Industry Map in 2021" is Coming-Echelon Ranking and Distribution

As an essential part of the new drug research and development industry, the company provides services throughout the entire life cycle of the drug, from preclinical research to clinical phase I and before the drug patent expires. It can benefit from the long-term large The increase in business volume brought about by the investment in research and development can also share the dividends after the launch of innovative drugs, and there is a lot of room for sustainable development.

CDMO Market Size at Home and Abroad

CDMO is not a simple production capacity transfer or service outsourcing. Still, it can provide pharmaceutical companies with high-tech value-added research and development and production services, improve the efficiency of new drug research and development, reduce the cost of drug production after commercialization, and ensure the stability of the supply chain. According to Frost & Sullivan data, the outsourcing ratio of global pharmaceutical R&D investment in 2019 is about 39.7%, and it is expected to reach 49.1% in 2023. The global CDMO market will get more than 50 billion US dollars in 2023, with a compound annual growth rate of about 14.2%.

According to data, domestic CDMO service costs are less than 30% of that in the European and American markets, and my country's continuously improving cGMP raw material drug supply system and MAH (drug marketing authorization holder system), consistency evaluation, and accelerated review and approval policies are beneficial. My country's CDMO industry has ushered in an opportunity for rapid development. According to Frost & Sullivan data, by 2023, my country's CDMO market space will exceed 8 billion US dollars.

Judging from the European, American, and domestic pharmaceutical investment and financing data, the CDMO industry will maintain a high degree of prosperity in the future. The COVID-19 epidemic in 2020 has driven a rapid increase in the demand for biomedical R&D. According to the 2020 investment and financing report of Silicon Valley Bank, the investment completed by venture capital institutions in the US and European medical and health fields increased by 47% in 2020, reaching approximately US$51 billion. Set a historical record. In the Chinese market, the total number of medical and health venture capital transactions reached a new high of about US$12.1 billion, a growth rate of more than 100% compared to 2019. The growth of global pharmaceutical investment and financing data is expected to accelerate the development of innovative drug R&D investment led by Biotech and accelerate the expansion of the CDMO industry.

European and American pharmaceutical investment and financing data picture Source: Silicon Valley Bank Figure 

China Pharmaceutical Investment and Financing Data

The Basic Situation of CDMO Domestic Listed Companies

According to public data, most domestic listed companies are engaged in small-molecule CDMOs. Major macro-molecule CDMOs in different subdivisions include WuXi Biologics, Hepalink, and GenScript. Other companies are also actively deploying large-molecule CDMOs. From the perspective of future development prospects, the space for large-molecule CDMOs is enormous, and the market value of WuXi Biologics exceeds that of WuXi AppTec, which can be confirmed from the side.

Gradient Ranking of Domestic CDMO Listed Companies

Ranking the listed companies in the CDMO sector in terms of revenue scale, orders, and market value, WuXi is at the top, Pharmaron and Asymchem are in the second echelon, Porton, Kyushu, Viva Biotech, and ProPharm are In the third echelon, Hepalink, Wisdom Chemical, and GenScript are in the fourth echelon. Other unlisted companies are not included in the ranking due to a lack of public financial data.

From the perspective of market value, there are currently three domestic CXO companies that have exceeded 100 billion, WuXi (WuXi AppTec and WuXi Biologics), Tigermed, and Pharmaron; CDMO companies that have exceeded 100 billion are WuXi and Pharmaron, the capital market gave the CDMO industry a high valuation, with an average price-earnings ratio of more than 120 times.

Currently, the CR5 market share of global CDMO companies is less than 30%, and the CR5 market share of domestic CDMO companies is less than 20%. The investment and financing data of the pharmaceutical industry is one of the leading indicators reflecting CXO's prosperity. Its continuous and rapid growth will drive the entire industry to maintain a high level of wealth, providing certainty for the short-to-medium-term rapid development of the CDMO industry and leading companies.

It is expected that the concentration of the pharmaceutical outsourcing industry will further increase, and those companies with forward-looking business layouts, international vision, excellent management, and a large reserve of talents and technologies will win.