Huachen Testing announced on the afternoon of November 30 that the company plans to invest 90 million yuan (funds with a balance of 50 million + government discount loans of 40 million) for the construction of preclinical CRO research base projects. This is a key step for the company in the field of pharmaceutical testing, further highlighting the company's ability to expand into new areas and opening up new competition for the company.
China’s 2014 CRO market will reach US$33 billion. In 2005, the global CRO market has reached US$6.3 billion and is expected to reach US$36 billion in 2010. The domestic CRO started relatively late. At present, 25% of domestic R&D expenses for biopharmaceuticals have been market-based. We expect that with the increase in the demand for CROs by domestic pharmaceutical companies, the proportion of outsourcing will gradually increase, and the domestic CRO market will face huge room for development. It is expected to reach a scale of RMB 10 billion in the future.
Huachen Preclinical CRO Research Base is built in Kunshan, Jiangsu Province. It is planned to cover an area of ​​approximately 65,000 square meters. The development goal is to become the nation's largest and most technologically advanced pharmaceutical safety evaluation center, and to enter the world’s first echelon of the CRO industry. The first-phase construction investment was 90 million yuan, of which Shenzhen Huachen Testing Technology Co., Ltd. listed raised capital of 0.5 billion yuan, loans and external investment of 40 million yuan, the project average testing service average annual profit of 1,304,470 yuan, investment profit margin It is 15.66% and the payback period is 4.75 years (static, including construction period).
China’s 2014 CRO market will reach US$33 billion. In 2005, the global CRO market has reached US$6.3 billion and is expected to reach US$36 billion in 2010. The domestic CRO started relatively late. At present, 25% of domestic R&D expenses for biopharmaceuticals have been market-based. We expect that with the increase in the demand for CROs by domestic pharmaceutical companies, the proportion of outsourcing will gradually increase, and the domestic CRO market will face huge room for development. It is expected to reach a scale of RMB 10 billion in the future.
Huachen Preclinical CRO Research Base is built in Kunshan, Jiangsu Province. It is planned to cover an area of ​​approximately 65,000 square meters. The development goal is to become the nation's largest and most technologically advanced pharmaceutical safety evaluation center, and to enter the world’s first echelon of the CRO industry. The first-phase construction investment was 90 million yuan, of which Shenzhen Huachen Testing Technology Co., Ltd. listed raised capital of 0.5 billion yuan, loans and external investment of 40 million yuan, the project average testing service average annual profit of 1,304,470 yuan, investment profit margin It is 15.66% and the payback period is 4.75 years (static, including construction period).
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