Biden signed a new administrative order to "expand American biological manufacturing" and then lead the domestic CXO sector diving risk "preview" or forced industrial development

Today (September 13) opened, the concept sector of the CXO (pharmaceutical outsourcing) continued to decline, of which the stock price of several leading companies with higher overseas revenue was obvious.

As of the close of the day, Yaoming Bio (HK02269, HK $ 53.4, market value of HK $ 227.751 billion) fell 19.94%, Kang Longcheng (HK03759, HK $ 42.15, market value of HK $ 50.204 billion) fell 14.68%, Tiger Pharmaceutical (HK03347, 69.1 stock price, 69.1 Hong Kong dollar, a market value of HK $ 60.285 billion) fell 9.67%.

On the news, according to Global Network reports, the US Broadcasting Corporation (ABC) said that US President Bayeng signed an administrative order to encourage American biotechnology production and research on the 12th local time. It is reported that the order aims to promote the American manufacturing of the pharmaceutical industry and agriculture, plastics and energy industries. Global Network quoted media reports that the move was "responding to China's challenges in biotechnology."

It is worth noting that this is not the first time that the CXO sector's stock price has changed. Whether it is the UVL (unattended list) or the industrial chain policy that affects difficulty, most of the CXO company revenue is more dependent on overseas regions, and the shortcomings that have not been fully replaced by the upstream of the industrial chain.

Fighting Biomedical Industry: Biden signed relevant administrative orders twice

The documents released by the White House on September 12 revealed more details. According to interface news reports, the White House official website information shows that the administrative order signed by Biden on the 12th was to launch the "National Biotechnology and Biological Manufacturing Initiative".

It is worth noting that this is not the first time that Biden "moves" to the biomedical industry. In February last year, Biden signed an administrative order to conduct a 100 -day review of the supply chain of four key products including medicines and a deeper one -year review, and in the 100 -day report released later It is clearly proposed to further strengthen the pharmaceutical supply chain measures.

The interface news reported that the White House statement pointed out that the United States "excessive dependence" of foreign materials and biological manufacturing has threatened the ability of the United States to obtain key materials to obtain key materials for many years.

In recent years, Chinese CXO companies, which have made strong breakthroughs in the international market in recent years, have been considered by many people in the industry to be one of the targets of the new administrative orders in the United States.

For the development of the biological industry, in May this year, the my country National Development and Reform Commission also issued the first five -year planning of the biological economy. The "Fourteenth Five -Year Plan" Biological Economic Development Plan clearly states that it is necessary to "accelerate the bottleneck of the biological economic development, realize the self -reliance of science and technology, and improve the level of security and stability of the industrial chain supply chain."

Photo source: Photo Network-501514500

Thunder does not necessarily rain: the influence before the implementation of the rules is still unclear

"Yesterday the news was turning in the circle yesterday. Everyone is worried about the relevant impact. You see that today it has fallen much. Most of them are companies with a high proportion of overseas income. An unnamed industry insider told the Daily Economic News.

According to the "Daily Economic News" reporter, in 2021, the overseas business income of domestic head CXO companies Yaoming Kangde, Kang Longcheng, and Tiger Medicine accounted for 75%, 83%, and 47%, respectively. Revenue has different degrees of dependence on overseas regions.

On September 13th, Wang Wenhua, a CIC Burning Consultation partner, said in an interview with the reporter of the Daily Economic News that the impact of the administrative order on Chinese CXO companies is unclear. Outsourcing services for pharmaceutical research and development.

From Wang Wenhua's view, from the perspective of industrial development, if the CXO industry chain is transferred from China to the United States, it is not an optimal decision for many American pharmaceutical companies. This is because compared with the American CXO company, the Chinese CXO industry has lower labor costs and faster clinical patients recruitment speed, which can provide high cost -effective solutions in clinical and clinical stages. Give up these ideal service outsourcing objects and allow local pharmaceutical companies to face huge growth in R & D costs and slower clinical progress, obviously violated Biden's original intention to sign the relevant administrative order.

The above -mentioned industry insiders also hold a similar point of view. Development composition has a significant impact.

Multiple risks "exercise": Forced domestic CXO companies to make up for shortcomings

It is not the first time that the stock price of the domestic CXO sector has been "wronged" by emotions is not the first time. Although industry insiders generally believe that the possibility of comprehensive decoupling of the Chinese and foreign pharmaceutical industry chain is very small, the domestic CXO industry chain has not fully achieved domestic alternatives, and the objective gap between the volume and level of Sino -US innovation biopharmaceuticals, or CXO enterprise investors The fundamental reason is easy to become the "bird of shocking".

In the risks "exercise" again and again, the shortcomings of the domestic CXO industry have repeatedly appeared, and they also forced the CXO industry chain to accelerate the development of domestic alternatives and break through the technology of card neck. For example, many domestic CXO companies have launched biological manufacturing infrastructure layout overseas.

Taking the fastest internationally as an example, it has more than 10,000 employees in China, the United States, Ireland, Germany and Singapore. In July this year, the company announced the plan to invest $ 1.4 billion in the next ten years to build an integrated CRDMO service center in Singapore to expand the capabilities and scale of biopharmaceutical discovery, development and large -scale raw liquid and preparation. Professional positions and will add 120,000 liters of biopharmaceutical capacity to the company in 2026. In 2021, Kang Longhua's capital expenditure for internal construction and extension mergers and acquisitions was 2.093 billion yuan and 1.437 billion yuan, respectively. Following the acquisition of ABSORPTION gene cell therapy and ABL biological preparation business last year, January and July this year acquired British Cramlington and the American Coventry Materials Pharmaceutical Base to further deploy global small molecular production service capabilities.

It is foreseeable that in the future, the domestic CXO industry will continue to grow, but it will also need to appease investor emotions in a timely manner.

Wang Wenhua said that this round of CXO companies' stock prices have fallen to a certain extent excessive excessive response from investors in the market. On the one hand, domestic companies can continue to carry out business and minimize changes from the perspective of the company's operations. On the one hand, try to be as fast and detailed in the face of investor related questions to eliminate the relevant doubts of investors.

Daily Economic News

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