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WuXi PharmaTech (603259): Empowering global pharmaceutical innovation to expand outward

WuXi PharmaTech (603259): Empowering global pharmaceutical innovation to expand outward
The “water seller” of drug research and development, the track continues to be booming: innovative drug service providers continue to confirm revenue in the process of drug research and development, and achieve performance explosion before innovative drug companies.With the promotion of drug development and breakthrough penetration, the global market is expected to maintain a 10% growth rate.The domestic pharmaceutical industry is undergoing industrial upgrading from “generic-based” to “innovation-oriented”. The development of innovative drugs has entered a golden age, and the drug R & D outsourcing service industry has entered an explosive period, which is expected to achieve a growth rate of more than 20%. Integrated service platform, leading to enjoy the track dividend: the company’s business covers the entire drug R & D industry chain, using drug discovery as the flow port, accumulating a large number of customers and projects, and pushing forward with R & D to achieve business diversion in different departments for follow-upThe development and commercialization stages provide more business opportunities, and the industry continues to flourish.We expect overall revenue growth of 25% -30%. Laboratory services in China: mature development, leading global scale capabilities, continuous expansion of long-tail customers, and contribution to stable and continuous cash flow.Involving innovative drug prediction and sales consolidation through DDSU provides performance flexibility.At the same time, as a drug research and development flow port, it continues to divert investment services.We expect a three-year compound growth rate of 20% -25%. Clinical CRO service: It started relatively late and its service capacity is continuously expanding. Based on the integrated service platform, the order conversion rate at the pre- and post-clinical stages has gradually increased, providing growth flexibility. We expect revenue to grow at a compound annual growth rate of more than 50%. Small-molecule CMO / CDMO: A domestic leader, with sufficient pre-clinical project reserves, transforming research and development advancement, a large number of front-end retained projects are diverted to the later clinical stage and commercialization stage, and the scale of revenue has achieved multiple expansion.We expect revenue to grow at a compound annual growth rate of about 30%. Laboratory services in the United States: The initial layout of cell and gene therapy CDMO in the development of the industry is still in the continuous accumulation period, the 武汉夜网论坛 transfer of production capacity is released, the project increase is expected to grow rapidly, and the growth of medical device testing is relatively stable.We expect a three-year compound annual growth rate of 25% -30%. Layout of the medical and health ecosystem and continuous development of capabilities: The company invests in the medical and health field through joint ventures and venture capital funds, while increasing investment returns, it is able to respond and efficiently grasp industry development trends and cutting-edge science and technology to betterTo empower new drug research and development, while expanding the business to the entire medical and health ecosystem, to build a long-term growth engine. Earnings forecast and grade: It is expected that the company’s net profit attributable to the parent in 2019-20佛山桑拿网21 will be 21 respectively.500 million, 27.200 million, 34.7 ppm, a ten-year increase of -5.1%, 27.0%, 27.4%; corresponding PE is 67 times, 53 times, 42 times.The company is the world’s leading leader in drug R & D outsourcing services. The pre-clinical CRO business provides stable cash flow. CMO / CDMO and clinical CRO continue to develop high growth under an integrated service platform. The innovative model DDSU provides great performance flexibility and lays out a medical and health ecosystemThe circle provides a long-term development engine, and we are optimistic about the company’s development.Covered for the first time and given a “Buy” rating. Risk reminders: risks of changes in industry regulatory policies, risks of declining demand for pharmaceutical R & D services, risks of intensified market competition, risks of loss of core technical personnel, risks of exchange rate changes, and risks of overseas operations.