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What is CXO service?

What is CXO service?

  • Time of issue:2023-03-08
  • Views:

(Summary description)CXO is a general term for the pharmaceutical outsourcing track.

What is CXO service?

(Summary description)CXO is a general term for the pharmaceutical outsourcing track.

  • Categories:Blogs
  • Author:AIVD
  • Origin:
  • Time of issue:2023-03-08 09:28
  • Views:
Information

1. What is CXO, CRO, CDMO?


CXO is a general term for the pharmaceutical outsourcing track. The so-called pharmaceutical outsourcing refers to the various outsourcing services provided by CXO companies for pharmaceutical companies from new drug development to production, which plays the role of cost reduction and efficiency enhancement.


The CXO track can be subdivided into several branches according to different outsourcing links, mainly including CRO, CDMO, etc.


CRO refers to contract research organizations, which mainly outsource clinical research, including the screening of potential drug-forming compounds until the completion of clinical trials. CDMO, on the other hand, focuses on manufacturing services, providing process development, API production, intermediate manufacturing, formulation production and packaging services for new drugs.


Flush related board (code 885927) is called CRO concept, but to be precise, this industry should be collectively called CXO.

 

 

2. What are the core CXO companies?


According to the outsourcing services provided in different segments, CXO companies can be mainly divided into three categories: full process, CRO and CDMO.


(1) Core CXO companies that provide the whole process of new drug outsourcing services from R&D to production - WuXi AppTec and Kanglong Huacheng, which are the leading companies in the industry with business covering the whole stage of new drug development.


(2) Core CRO companies focusing on research outsourcing - Tigermed, Zhaoyan, Medicilon and Chengdu Pilot. Among them, Tigermed provides full-stage research outsourcing, while Medicilon, Zhaoyan and Chengdu Pioneer mainly provide R&D services for new drugs before entering clinical trials.


(3) Core CDMO companies that focus on production-side outsourcing - Kalaying, Boten, Jiuzhou Pharmaceutical, Pharmastone and Haoyuan Pharma (among which Pharmastone and Haoyuan Pharma provide specialty molecular blocks that can be applied in all stages of R&D to production, but in terms of revenue share, Pharmastone and Haoyuan Pharma are currently focused on CDMO. (Therefore, they are not included in the first category).

 


3. What is the reason for the continuous rise of CXO industry?


CXO industry can continue to rise due to the high certainty of the track boom. The three main factors influencing the high boom of the pharmaceutical outsourcing industry will continue: accelerated new drug applications (domestic market expansion), overseas industry chain transfer to domestic, and policy support.


(1) Accelerated new drug applications and hot demand for innovative drug development. The number of domestic clinical applications for new drugs is growing rapidly, with 1,448 new clinical applications for innovative drugs in 2020, an increase of over 70% year-on-year, and these applications are expected to enter the clinical stage in the future, which will translate into pharmaceutical outsourcing orders.


(2) Overseas industry chain transfer to domestic. The trend of industry chain transfer to domestic continues under the influence of the epidemic. Innovative pharmaceutical companies are more willing to reduce costs and increase efficiency through R&D outsourcing under the pressure of R&D investment; and foreign pharmaceutical outsourcing companies stop working under the influence of overseas epidemic, which helps domestic companies increase their share.


(3) The country encourages the development of the pharmaceutical outsourcing industry at the policy level. 2018 promulgated the "Notice on the Organization and Implementation of the Special Project for the Construction of Biomedical Contract R&D and Production Service Platforms", which proposes to focus on supporting a number of high-level, internationalized and comprehensive pharmaceutical outsourcing service platforms. The priority review of innovative drugs (speeding up the listing process), the trial implementation of the MAH system (separation of drug marketing and manufacturing licenses), and health insurance cost control (generic drug collection) have increased the demand for pharmaceutical outsourcing.

 

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