Investment Rating - The industry rating is "Recommended (Maintain)" for the CXO sector, indicating an upward trend in the supply-demand balance and a potential recovery phase [52]. Core Insights - The CXO industry is experiencing a recovery phase, with supply clearing and improving demand conditions expected to catalyze a new upward cycle [52][56]. - The demand for large molecule CDMO services is robust, driven by the increasing commercialization of ADCs, bispecific antibodies, and other new molecular entities [2][115]. - The global small molecule CDMO market is projected to grow significantly, with a CAGR of 15.5%, reaching 106.7billionby2028[77].−ThecompetitivelandscapeforlargemoleculeCDMOisbecomingincreasinglyconcentrated,withmajorplayerslikeLonza,WuXiBiologics,andSamsungBiologicscapturingsignificantmarketshares[139][140].SummarybySectionsCXOIndustryOverview−TheCXOsector′srevenueforthefirstthreequartersof2024was67.06billionyuan,ayear−on−yeardecreaseof851.9 billion in 2023, with expectations of significant growth driven by stable R&D investments from large pharmaceutical companies [77]. Clinical and Preclinical CRO - The clinical CRO sector is facing challenges due to high project cancellation rates, but there are signs of recovery as demand from large pharmaceutical companies remains stable [15][30]. - The clinical and preclinical CRO markets are expected to see improvements as the demand environment stabilizes and funding for biotech companies begins to recover [30][47]. Supply Chain and Capacity Expansion - The industry is focusing on building a global production network to enhance supply chain security, with companies like WuXi Biologics and Fujifilm expanding their facilities in Europe and North America [42]. - The CXO industry is transitioning from a phase of rapid capacity expansion to a more stable development phase, with capital expenditures declining significantly [72][154].
