WuXi PharmaTech (603259): Benefiting from a new era of global innovation, expansion leaders are on the rise

WuXi PharmaTech (603259): Benefiting from a new era of global innovation, expansion leaders are on the rise
Recommended logic: The expanding pharmaceutical manufacturers in the new drug R & D industry are shifting to cooperate with R & D outsourcing companies, and the industry focus is shifting to the Asia-Pacific region; WuXi PharmaTech has deeply cultivated the pharmaceutical R & D market, has completed technology accumulation, and its R & D capabilities are at the forefront of the world.The company has a long-term strategic vision, completes the entire industrial chain layout, and has a clear future growth trend. The company is a leader in the industry and has broad prospects for development.The company is the earliest domestic pharmaceutical industry expansion research and development enterprise. It has the technological capabilities of international giants since its inception, especially in the preclinical 夜来香体验网 CRO and CDMO fields.At present, the company is one of the few pharmaceutical R & D outsourcing companies that can cover the entire industrial chain of new drug R & D.And among the 52 companies invested by the company, most of them are in the frontiers of the pharmaceutical industry, providing ample space for the company’s future development. The pharmaceutical outsourcing industry has brought the “optimized configuration revolution” to the pharmaceutical industry.The human pursuit of health has never stopped, and pharmaceutical companies need to continuously develop new drugs.The pharmaceutical outsourcing industry can help pharmaceutical companies overcome the development and transformation of new drug research and development costs that are too high, and promote the reintegration and optimization of social resources.In the future, more pharmaceutical companies will strengthen cooperation with pharmaceutical R & D outsourcing companies, and the industry has a promising future.At the same time, a series of policies are introduced at the beginning of each year to promote the development of innovative drugs, which also further ushers in the development of China’s pharmaceutical R & D and expansion market. The company’s main business development is stable, and the future profit growth rate is guaranteed.The company’s preclinical CRO business has achieved a compound growth rate of 25 in the past three years.0%, as global pharmaceutical research and development activities are being transferred to China and other countries, we believe that this segment’s revenue will continue to maintain rapid growth in the next three years.The growth rate of laboratory revenue (device, cell and gene therapy expansion services) in the United States declined in 2018, but with the re-registration of European devices and the rapid growth of global cell and gene therapy, this segment’s revenue growth trend in 2019Speed up.The company’s CDMO sector has a compound growth rate of 28 in the past three years.4%, the company’s orders and production capacity are still on the rise, we believe that the sector is expected to achieve growth of more than 30%. Earnings forecasts and investment advice.We expect EPS to be 2 in 2019-2021.15 yuan, 2.77 yuan, 3.48 yuan, corresponding to PE is 37 times, 29 times, 23 times.The pharmaceutical outsourcing industry is currently rising rapidly. WuXi PharmaTech is a leader in the global pharmaceutical R & D outsourcing industry. It has fully benefited from the global wave of innovative drugs and maintained a “Buy” rating. Risk reminder: the risk of laboratory equipment testing services in the United States still failing to meet expectations; the risk of overcapacity of newly-built CMO pipelines; the risk of exchange rate changes; the outsourcing service industry’s growth rate may be lower than expected.