Contract research organization rose at the beginning of 1980s. The rise of the Chinese CRO industry was more than a decade later than the Europe and America: it gradually rose in 2000-2004 with the founding of Chinese CROs including WuXi AppTec, ShangPharma, Tigermed, and Boji Pharmaceutical, etc.
CROs seemed to usher in a small climax in 2017, with frequent listings and M&As to hit nerves of the industry. According to incomplete statistics of Sinohealth.com, there were at least 7 enterprises that applied for IPO in 2017: CROs including WuXi AppTec and Pharmaron, etc. successively filed IPO applications, and JOINN Laboratories completed listing on the main board (of Shanghai Stock Exchange); Sinocro and SMO ClinPlus were listed on the NEEQ.
Financing Situation of Some Enterprises in 2017
|
Time |
Enterprise |
2016 revenue (RMB 10,000) |
Financing situation |
|
January |
Sinocro |
- |
NEEQ |
|
March |
SMO ClinPlus |
6,292 |
NEEQ |
|
June |
Pharmaron |
163,423 |
Shenzhen Stock Exchange |
|
June |
WuXi Biologics |
98,903 |
Hong Kong, S.A.R., China Stock Exchange |
|
July |
WuXi AppTec |
611,613 |
Shanghai Stock Exchange |
|
July |
Medicilon |
23,240 |
Shenzhen Stock Exchange |
|
August |
JOINN Laboratories |
24,181 |
Shanghai Stock Exchange |
|
November |
ChemPartner |
86,386 |
Proposed to be acquired by Quantum Hi-Tech |
|
December |
CrownBio |
42,615 |
Proposed to be acquired by Japan JSR Corporation |
In addition, two CROs were acquired: ChemPartner was acquired by Quantum Hi-Tech in November, to rapidly improve service ability and expand capacity scale with the strength of capital; in December, CrownBio was acquired by Japan JSR for TWD 2 billion (about RMB 2.64 billion) through reverse triangular merger, and CrownBio planned to expand towards toxicology and production, etc. besides the original oncology and metabolic disease pharmacodynamics business.
With massive funds flooding into the CRO industry, the M&A and integration may be accelerated, and the industry will develop towards higher concentration.
The win...










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