New Chinese DrugsCMCGREAT WALL Forum
2022year11month3day-4On the day, the third China New DrugCMCThe Summit Forum was grandly held,600Several distinguished guests gathered at the Shanghai Marriott Hotel Yuyou to discuss major plans for new drugs and participate in an innovative event. Frost & SullivanFrost & SullivanMao Hua, Partner and Managing Director of Frost & Sullivan's Greater China Region, was invited to attend the conference and speak on Global and ChinaCDMO companyDeliver a speech on the current market situation and future development trends.
Partner and Managing Director of Frost & Sullivan Greater China Region fattening
According to Mao Hua, entrustmentCDMOhas become an important path for pharmaceutical companies to conduct drug research, development, and production. Both large pharmaceutical enterprises and startups canCDMO companyBenefited from the high-quality services provided. For pharmaceutical companies,CDMOIt can reduce enterprise costs, improve R&D production efficiency, and promote technology iteration.
Mao Hua said, Driven by factors such as global capacity shifting and the rise in demand for innovative drugs domestically, ChinaCDMOThe driving force for the industry's development is very strong, and the prospects for its development are broad:
1) Significant talent and cost advantages attract global production capacity shifts: CDMOFor technology-intensive industries, links such as optimizing drug production processes require professional technical talents. China provides an abundant source of talent for the industry with graduates from biomedical-related majors every year. On the other hand, China also has significant cost advantages in logistics, raw materials, and energy.
2The continuous injection of pharmaceutical R&D expenses will drive the enthusiasm for new drug research and development and production: In recent years, the scale of pharmaceutical R&D investment in China has shown a steady growth trend, which has shifted from2017year143USD billion to2021year290billion US dollars. It is expected to continue expanding at a rate higher than the global R&D investment in the future. The increasing R&D expenditure will provide more active and abundant financial resources for innovative drug research and development, thereby boostingCDMOMarket development.
3The technology platform is constantly innovating and iterating to empower users.CDMO companyEnterprise: In recent years, there has been an increasing numberCMOEnterprises are gradually becoming more involved in drug research and development, with strategic transformation asCDMOEnterprises and industry participants are also continuously upgrading their industries through the innovation of technology platforms and R&D capabilities.
4The promulgation of industry policies and the implementation of systems have created a favorable environment: The implementation of the Drug Administration Law marksMAHWith the formal establishment of the system, decoupling production from R&D is conducive to promoting R&D-oriented enterprises andCDMOInstitutional cooperation; national drug regulatory authorities have introduced pharmaceutical review reform measures, prioritizing the review and approval process to accelerate the launch of innovative drugs; volume-based procurement and medical insurance negotiations have expanded the pharmaceutical market. At the same time, price pressure has led to demands for cost control and production capacity flexibility, prompting pharmaceutical companies to prefer to entrust domestic operations.CDMOEnterprises implement outsourcing services.
"GlobalCDMOThe industry is in a trend of continuous expansion and development, maintaining a high market prosperity level. In ChinaCDMOThe market is leveraging its advantages in talent, capital, technology, etc., to go globalCDMOThe market is playing an increasingly important role." Mao Hua said.
Subsequently, Maohua thenCDMOA detailed analysis is conducted on the development characteristics of market segmentation areas.
According to the drug type, currentlyCDMOSub-sectors can be mainly divided into small moleculesCDMOBiopharmaceuticalCDMO(including peptides/antibody/protein/Vaccines, etc.) and cellular gene therapyCGT)CDMOThree major categories. He pointed out, small moleculesCDMO companyThe company has developed relatively mature R&D technologies and production capabilities, currently occupying a major share of the global and Chinese markets. In terms of biopharmaceuticalsCDMOThe market has been growing at a relatively fast pace in recent years. However, from the perspective of market structure, biopharmaceuticalsCDMOThe industry concentration ratio is significantly higher for smaller firms.
The success rate of developing new molecular entity drugs is low, and a product from clinicalIThe success rate from phase trials to market approval is only5.7%Market competition is becoming increasingly fierce, and pharmaceutical companies tend to engage withCDMO companyThe company collaborates to improve efficiency or develop high-tech barrier pharmaceutical formulations. The research and production of new, high-end complex formulations also pose new challenges to chemical pharmaceutical processes, small moleculesCDMO companyIn order to address these challenges, the industry has built a series of advanced process technology platforms and expanded its range of service capabilities.
In addition, in recent years, with the deepening research into disease mechanisms, drug development has gradually entered an era of precision therapy targeting specific targets. Correspondingly, there have been relatively significant changes in the nature of new drugs: drugs now have more accurate and selective targeted effects, with an increase in highly active pharmaceutical components; drug molecular weights have significantly increased and structures have become more complex; water solubility and permeability of drugs have decreased. A series of changes in the properties of new drugs have driven a growth in demand for corresponding emerging synthetic and formulation technologies, small moleculesCDMO companyThe market grew accordingly. Chinese small moleculeCDMO companyMarket scale has shifted from2017year103RMB 10 billion, an increase of2021year314RMB 10 billion, with an average annual compound growth rate of32.3%, is expected to arrive2025This number will grow to1,103RMB 10 billion, with an average annual compound growth rate of36.9%.
The Chinese biopharmaceutical market is growing rapidly, and its share in the global pharmaceutical market continues to climb, driving up demand for outsourcing services for biopharmaceutical research and development and production. In addition,CDEat2017reach2021Biopharmaceutical innovation drugs accepted during the yearINDThe number has surged, and the enthusiasm for innovative biopharmaceutical research and development is on the rise, targetingCDMOThe demand is growing. According to a study by Frost & Sullivan, Chinese biopharmaceuticalsCDMOMarket scale is from2017year29RMB 10 billion, an increase of2021year159RMB 10 billion, with an average annual compound growth rate of52.7%, is expected to arrive2025This number will grow to468RMB 10 billion, with an average annual compound growth rate of31.0%.
Cell gene therapyCGTIt has become a new generation of breakthrough precision treatment method with significant therapeutic advantages, and related clinical translation and commercialization are accelerating. Mao Hua pointed out,CGTIndustry characteristics with a high outsourcing rate, such asCGTThe R&D and production barriers of products are high, making them more dependent on outsourcing R&D process services to advance clinical progress than traditional drugs, as well asCGTR&D costs for product development are much higher than those for traditional drugs, making R&D companies more willing to cut costs and thus tend to outsource.CDMOCooperate.
chinaCGTIt has entered the early commercialization stage, and R & D enterprisesCDMOGrow together, driveCGTThe clinical progress of the product, reduced R&D costs, improvedCGTProduct accessibility. Data shows, ChinaCGT CDMOMarket scale is from2017year7RMB 10 billion, an increase of2021year18RMB 10 billion, with an average annual compound growth rate of28.9%, is expected to arrive2025This number will grow to96RMB 10 billion, with an average annual compound growth rate of50.8%.
Overall,CDMOThe industry will exhibit the following three development trends in the future: 1)CDMO companyLeading enterprises make fixed asset investments through capacity acquisition or self-construction to ensure capacity support and provide flexibility in capacity supply. At the same time, leading enterprises will accelerate their pace of globalization expansion, explore international market territories, and further attract orders from home and abroad.2The market potential in emerging fields is huge, and at the forefrontCXOEnterprises and R&D companies flocked inCGT CDMOCompete on the track;3small and medium-sizedCDMOEnterprises choose to deeply cultivate niche markets, committed to building distinctive and differentiated technological advantages. In terms of technological advantagesThe sector seeks development space.
Finally, Mao Huaing stated that the Frost & Sullivan healthcare team is atCDMOThe team has rich project experience in the industry, having served clients such as WuXi AppTec, CHERATech, Biotronics, Heyuan Biotech, Dongyao Pharmaceutical, and Kingsun Biotechnology. In addition, Frost & Sullivan has been continuously monitoring the ChineseCDMO companyIndustry market research, releasedCDMO"Research Report on the Current Development Status and Future Trends of the Industry", putting forward its own industry insights and viewpoints, hoping to serve asCDMOMarket observers provide an important perspective for reference.
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