The government announced that it will take the lead in investing in biotechnology CDMO (entrusted development and manufacturing service) companies, and at the same time strengthen international links. With the unstoppable trend of CDMO, in order to grab international orders, domestic CDMO factories actively expand production capacity and enter different fields of technology. In addition, through mergers and acquisitions and strategic cooperation, the operation has grown rapidly.
The global biopharmaceutical market maintains high growth, especially due to international factors such as the US-China trade war, which makes European and American pharmaceutical companies reluctant to produce biopharmaceuticals in China, and other Asian countries play an important role. The production capacity has jumped to the first place in the world.
There are two major areas of competition for CDMO factories, including mature products that need to be manufactured in large quantities, and advanced therapy products that master a niche. In terms of mature products, in addition to large factories and large capital investments, the main operating purpose of pharmaceutical factories is to produce large and multiple batches of products. In order to reduce production and reduce costs, although Taiwan’s CDMO factory has actively expanded its production capacity, it still cannot catch up with South Korea’s Samsung Pharmaceuticals.
However, in advanced therapy, Taiwanese companies have already established a firm foothold, possessing R&D and development capabilities in the front-end of pharmaceuticals, and with a moderate production scale, their operational goals are to develop a niche market, so as to seize international orders.
From the perspective of several domestic players, after Yongxin has transformed into a CDMO one-stop service platform, the proportion of revenue from overseas is as high as 80%, and mainly Japanese customers. In order to expand the European and American markets, in addition to actively increasing the scale of 2 GMP manufacturing plants, the service field has also expanded to emerging biopharmaceuticals, including immune cell therapy in allogeneic cell therapy, stem cell therapy, antibody drug complex (ADC), etc.
On the other hand, Baorui has strengthened its niche drug technology through mergers and acquisitions. This year, it has taken 16 approved drugs sold in the United States, thereby entering the field of special generic drugs and 505B2 new dosage form drugs, and at the same time taking advantage of its existing international sales. advantages, and rapidly enhance the Group’s process development and R&D capabilities.
Taikangsheng and Taibao Biomedical adopt a dual-track strategy. On the one hand, Taikangsheng uses CDMO to win production orders from domestic and foreign pharmaceutical and vaccine factories, and on the other hand, it develops a series of biosimilar drugs mainly for breast cancer HER2. As CDMO orders continue to grow, it plans to expand production capacity to start a three-phase large-scale plant expansion plan next year. After six years, the total production capacity will jump from 26,000 liters at the end of this year to 176,000 liters.
Taibao will operate with new allogeneic stem cell drugs and CDMO dual-track operation. In addition to the PIC/S GMP factory with new cell medical drugs, it also has new drug products for knee degenerative arthritis and diabetic foot into Phase II, aiming to become the world’s first allogeneic drug product Companies that bring genetically modified mesenchymal stem cells to market.