New Visiongain report - Top 50 pharmaceutical CMO's market 2018: Financial Performances, Services, Capacities, Mergers & Acquisitions,SWOT Analysis

1. www.visiongain.com/pharma Page 218
Pharma Leader Series: Top 50 Pharmaceutical Contract
Manufacturing Organisations (CMOs) Market 2018
Financial Performances, Services, Capacities, Mergers & Acquisitions, SWOT
Analysis
Figure 3.37 Shandong Xinhua Revenue Share by Geographic Region:
Revenue Share (%), 1H 2017
3.40.3 Growing through Joint Ventures
Shandong Xinhua has collaborated with Royal DSM since the mid-1990s. In 1994, the two
companies established a joint venture in China. In 2001 they jointly opened a new manufacturing
facility in Zibo, China, for the production of bulk antibacterial products derived from 7-ADCA. The
new manufacturing facility was the second to be opened by the two companies and was
established to meet growing demand from the Chinese pharmaceutical industry. More recently, at
the end of 2009, DSM’s anti-infectives division signed a long-term cooperation agreement with
Shandong Xinhua for the supply of DSM PureActive products, as well as the transfer of certain
manufacturing technologies. Collaborations with companies such as DSM benefit Shandong
Xinhua as they provide funding for new manufacturing facilities, from which the Chinese CMO can
serve developed market clients, as well as offering a long-term stream of revenue.
3.40.4 Looking to Expand in the US and EU
Visiongain believes that Shandong Xinhua is among the leading manufacturers of APIs in China.
The company is also among the leading contract manufacturers for finished dosage forms in that
country. It has been able to partner with leading developed market pharmaceutical companies -
and CMOs - which have led to long-term supply agreements guaranteeing a source of revenue.
However, in recent years the company has become increasingly reliant on a small number of
pharmaceutical companies for a significant portion of its revenue. In the first half of 2012 three
companies accounted for more than a third of the company’s revenue.
China, 64.5%
Europe, 10.4%
Americas, 16.5%
Rest of World, 8.6%
Source: Shandong Xinhua, Visiongain 2018

2. www.visiongain.com/pharma Page 239
Pharma Leader Series: Top 50 Pharmaceutical Contract
Manufacturing Organisations (CMOs) Market 2018
Financial Performances, Services, Capacities, Mergers & Acquisitions, SWOT
Analysis
Table 3.133 Piramal Pharma Solutions: Revenue ($m), Annual
Growth Rate (%), CAGR (%), 2012-2017
2012 2013 2014 2015 2016 2017
Revenue ($m)
77.6 93.9 129.4 146.6 166.2 175.7
Annual Growth (%)
17.4% 27.4% 11.7% 11.8% 5.4%
CAGR (%)
17.8%
Figure 3.40 Piramal Pharma Solutions: Revenue ($m), 2012-2017
3.48.3 Investment in Technology based Delivery Platforms
The Company is increasingly delivering its products and services through user-centric technology
platforms. Its delivery modality has shifted dramatically from large, static research reports to
digitally delivered, modular content that enables clients to obtain ‘just in time’ answers. For
example, in FY2017, the Company combined 11 different legacy brands under a new, dynamic,
web-based ‘Ask DRG’ Insights and Content Platform. It provides clients with an easy-to-use portal
to access all of its expert forecasting, market sizing, and gold-standard epidemiology for over 140
diseases. This best-in-class technology gives its 9,000+ users both the ease of web browser-like
searching and the ability to drill deep into the Company’s proprietary data sets.
0
20
40
60
80
100
120
140
160
180
200
2012 2013 2014 2015 2016 2017
Revenue($Mn)
Year
Source: Piramal, Visiongain 2018
Source: Piramal, Visiongain 2018

3. www.visiongain.com/pharma Page 243
Pharma Leader Series: Top 50 Pharmaceutical Contract
Manufacturing Organisations (CMOs) Market 2018
Financial Performances, Services, Capacities, Mergers & Acquisitions, SWOT
Analysis
lucrative in the coming 10 years. Through a 2012 agreement with Enzon Pharmaceuticals,
Zhejiang Hisun gained access to pegylation technology, for example.
Growth for Zhejiang Hisun in the CMO market in the coming 10 years will be threatened by the
company’s desire to expand in drug manufacturing and marketing. As well as deals signed with big
pharma companies for generic product development in China, Zhejiang Hisun has licensed a
number of novel pharmaceutical products from smaller drug developers. Deals include an
agreement with Cleveland BioLabs, with Zhejiang Hisun gaining the exclusive rights to develop
and market the synthetic lipopeptide CBLB612 in China.
Table 3.135 Zhejiang Hisun Manufacturing: SWOT Analysis, 2017
Strengths Weaknesses
The company exports more than 90 APIs to
over 70 countries worldwide
Zhejiang Hisun has a smaller product portfolio
than developed market leaders
The company has partnered with a number of
leading big pharma clients
Zhejiang Hisun is the market leader in
antineoplastic and cardiovascular drug APIs;
two of China’s fastest growing segments
Opportunities Threats
Further expansion in the US and EU through
big pharma partnerships and new API
approvals
The company is increasingly focused on
becoming a drug developer
3.50 Zhejiang Huahai Pharmaceuticals
Zhejiang Huahai is much younger than the other companies discussed in this chapter. The
company was founded in 1989 as a manufacturer of APIs, intermediates and formulations for the
pharmaceutical industry. The company has 5,28,000 employees at eleven facilities in China and
the US. Its US subsidiary was established in 2004 in New Jersey in order to provide marketing
services for the North American market, as well as R&D, manufacturing and marketing for other
developed markets. Zhejiang Huahai exports its products to more than 50 countries worldwide. It
has a manufacturing presence in three provinces in China.
Source: Visiongain 2018