Zheng Quan Ri Bao·2025-11-03 16:18Core Insights - The CXO (Contract Research Organization) sector in A-shares has shown strong growth, with 20 out of 29 listed companies reporting year-on-year revenue increases in the first three quarters [1] - The third quarter alone saw 21 companies achieving revenue growth compared to the same period last year, driven by international demand for innovative drugs [1] - The sector is benefiting from both policy support and a surge in demand, which is enhancing new drug development needs and positively impacting the CXO industry [1] Policy Support - The National Healthcare Security Administration and the National Health Commission issued measures on July 1 to support the high-quality development of innovative drugs, outlining 16 policies to enhance the entire chain of support for innovative drug development [1] Demand Growth - 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 [1] - Kanglong Chemical indicated a more than 13% year-on-year growth in new orders, with acceleration in growth compared to the first half of the year [1] - Yino Science reported a nearly 20% increase in order amounts compared to the end of 2024 [2] - Haoyuan Pharmaceutical noted a 50% year-on-year increase in its small molecule business orders, marking four consecutive quarters of growth [2] Internationalization and Market Trends - The first half of the year saw a significant increase in the internationalization of Chinese innovative drugs, with total external authorization transactions reaching 60 billion USD, accounting for 99% of global related transactions [2] - Morgan Stanley's healthcare research head for Greater China anticipates stable long-term growth in external authorization transactions, with multinational companies likely to be more active in acquiring Chinese innovative drug assets [2] - The CXO industry is transitioning from a "scale dividend" to a "technology premium," with technological iteration and process innovation becoming the core of industry competition [2]