Core Viewpoint - The CDMO (Contract Development and Manufacturing Organization) business of multinational companies in China is not just shrinking but appears to be disappearing, with only a few remaining players like Boehringer Ingelheim still operating in the market [2][10]. Group 1: Current State of CDMO in China - The CDMO business in China has seen a significant decline, with major players like Lonza and Thermo Fisher Scientific facing operational challenges and even selling their facilities [5][6][8]. - Boehringer Ingelheim remains one of the few foreign CDMO companies still active in China, primarily due to securing a contract for the production of BeiGene's PD-1 drug [10]. - The CDMO market in China is experiencing a transformation, with many foreign companies exiting or downsizing their operations due to insufficient orders and market conditions [7][10]. Group 2: Market Dynamics and Trends - The implementation of the 2019 Drug Administration Law in China marked a turning point for the CDMO market, allowing for a separation of production and marketing licenses, thus lowering barriers for research-focused pharmaceutical companies [12]. - Despite the advantages of a large workforce and lower costs in China, many foreign CDMO companies have struggled to establish a foothold due to high pricing models that do not align with local market conditions [13][14]. - The Chinese CDMO market has grown significantly, with a compound annual growth rate of 39.9% from 2018 to 2023, increasing from 16 billion RMB to 85.9 billion RMB, and is expected to reach 208.4 billion RMB by 2028 [16]. Group 3: Future Outlook - Domestic CDMO companies are increasingly matching or surpassing the capabilities of foreign counterparts, offering higher efficiency and lower prices, which positions them favorably in the market [16][17]. - The evolution of the Chinese CDMO industry has transitioned from reliance on foreign technology and policy support to a focus on technological development and global capacity expansion [16].