Zheng Quan Ri Bao·2025-11-03 15:48Core Insights - The CXO (Contract Research Organization) sector in A-shares shows strong growth, with 20 out of 29 listed companies reporting year-on-year revenue increases in the first three quarters [1] - In the third quarter alone, 21 companies achieved year-on-year revenue growth, driven by international demand for innovative drugs and a supportive policy environment [2] Industry Overview - The innovative drug industry is experiencing a dual boost from policy support and surging demand, which is activating new drug research and development needs, benefiting the CXO sector [2] - The National Healthcare Security Administration and the National Health Commission issued measures to support high-quality development of innovative drugs, proposing 16 policies to enhance the entire chain of support [2] Company Performance - Several CXO companies reported robust order backlogs for the first three quarters. For instance, WuXi AppTec reported a backlog of 59.88 billion yuan, a 41.2% increase year-on-year [2] - Innosilicon reported a nearly 20% increase in order amounts compared to the end of 2024, while Haoyuan reported a 50% year-on-year increase in its small molecule business orders [3] Market Trends - The first half of the year saw a surge in Chinese innovative drugs going global, with total foreign licensing transactions reaching $60 billion, accounting for 99% of global related transactions [3] - Morgan Stanley's healthcare research head in Greater China anticipates stable long-term growth in foreign licensing transactions for Chinese innovative drugs, with multinational companies likely to be more active in acquiring Chinese assets [3] Future Outlook - The CXO industry is expected to benefit from a combination of demand recovery and structural upgrades, with policies, capital, and technology contributing to a more certain industry development [3] - The industry is transitioning from "scale dividends" to "technology premiums," with technological iteration and process innovation becoming the core of competition [3]