Market Insight | Pharmaron's increase expands to 20%, biopharmaceutical investment and financing are expected to recover, the company's new signed order amount in the first half of the year increased by over 15%

Zhitong
2024.10.04 07:01
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Pharmaron's increase has expanded to 20%, as of the time of publication, it has risen by 19.5% to HKD 19, with a turnover of HKD 180 million. PuYin International pointed out that with the start of the US dollar interest rate cut cycle, overseas biopharmaceutical investment and financing are expected to further recover, and the recovery of investment and financing prosperity is expected to gradually translate into the performance of CXO companies (in the first half of the year, companies such as WuXi AppTec and Pharmaron have seen new orders increase by 25% and 15% respectively). In addition, after the US NDAA on September 19 did not include the biosecurity proposal, we believe that the probability of the biosecurity proposal becoming a standalone law has decreased compared to before, although there is still a possibility of it becoming a standalone law. Changjiang Securities previously pointed out that in the first half of the year, Pharmaron's global customer inquiries and visits have also shown signs of recovery compared to the same period in 2023, with new order amounts increasing by over 15% year-on-year. Among them, new orders for laboratory services have increased by over 10% year-on-year, and new orders for CMC (small molecule CDMO) services have increased by over 25% year-on-year. It is expected that the sector's revenue in the second half of 2024 will increase compared to the first half of the year

According to the Zhitong Finance and Economics APP, Pharmaron (03759) has expanded its increase to 20%, as of the time of publication, it has increased by 19.5% to HKD 19, with a turnover of HKD 180 million.

PuYin International pointed out that with the start of the US dollar interest rate cut cycle, overseas biopharmaceutical investment and financing are expected to further recover. The recovery of investment and financing prosperity is expected to gradually translate into the performance of CXO companies (in the first half of the year, new orders for companies such as WuXi AppTec and Pharmaron increased by 25% and 15% respectively). In addition, after the US NDAA did not include the biosecurity proposal on September 19, we believe that the probability of the biosecurity proposal becoming a standalone law has decreased compared to before, although there is still a possibility of it becoming a standalone law.

Changjiang Securities previously pointed out that in the first half of the year, Pharmaron's global customer inquiry volume and visit volume have also shown signs of recovery compared to the same period in 2023, with new order amounts increasing by over 15% year-on-year. Among them, the new orders for laboratory services increased by over 10% year-on-year, and the new orders for CMC (small molecule CDMO) services increased by over 25% year-on-year. It is expected that the sector's revenue in the second half of 2024 will see a sequential increase compared to the first half of the year

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