In recent years, under the catalysis of consistent evaluation, centralized procurement, MAH system and other factors, China's generic drug industry has experienced significant development, and its huge stock market occupies an important position in the pharmaceutical industry. Based on the domestic trillion generic drug market, for many generic CXO companies, strong autonomy is a strong "reassurance" to maintain performance stability.

In addition to the original stable market foundation, according to the statistics of Evaluate Pharma, from 2023 to 2028, a total of about 138 billion US dollars of sales of drugs will expire their patents, including many blockbuster varieties. The arrival of the "patent cliff" of innovative drugs will release a lot of space for generic drug research and development. Generic drug companies need to improve research and development efficiency in order to compete for the first imitation to grab market share, and commissioning CXO for drug research and development or production outsourcing has become a better solution, and generic CXO companies are expected to take this market outlet and usher in a large number of orders.

At the same time, the arrival of the innovative drug "patent cliff" also means that the original research drug companies need to lay out innovative products as soon as possible to make up for the loss of the market, and generic CXO companies can also rely on their increasing research and development capabilities to enter the innovative drug track, so in the long run, generic CXO companies have both business stability and growth, worth long-term prospects.

However, the CXO industry is welcoming opportunities, but also accompanied by pain. The recent experience of CXO companies' setbacks in overseas markets also reminds Chinese pharmaceutical companies to continue to strengthen their research and development strength and technical level, and constantly improve the degree of localization of the supply chain, so as to drive domestic CXO companies to increase domestic revenue and achieve win-win development.

In order to help CXO enterprises seize market opportunities and explore more potential cooperation opportunities in the industrial chain, the "22nd World Pharmaceutical Raw Materials China Exhibition - Contract Customized Service Exhibition Area" will be opened in Hall E2/E7 of Shanghai New International Expo Center on June 19-21, 2024. At that time, a number of high-potential generic CXO enterprises such as Wanbang Pharmaceutical, Chaorui Chemical, Daohe Pharmaceutical, Huachuan Biological, and Fiz Biological will come to the exhibition site to focus on showing the preclinical research, clinical trials, production and other technologies and services related to generic drugs, jointly meeting the major opportunities brought by the "patent cliff" and promoting the rapid development of the generic CXO industry.

Source: CPHI World Pharmaceutical Raw Materials China Exhibition