enterprises to break the situation-the "danger" and "machine" under the epidemic"

With the outbreak of the new coronary pneumonia epidemic on a global scale, the global demand for new coronary drugs, vaccines, diagnostic reagents and other related products is increasing day by day. In the short term, the research and development and production of products related to the epidemic will continue to increase. Resources such as corporate funds and production equipment will shift to the field of new coronary pneumonia prevention and treatment, especially large-scale pharmaceutical companies with strong comprehensive strength, such as Pfizer, GSK, MSD, kexing, Consino and other leading enterprises. At the same time, for CDMO/CRO companies, the rapid increase in projects related to the new crown has led to new business growth points.

In addition, the epidemic has increased the national government's attention to the pharmaceutical industry and capital investment, in the government work report also stressed the epidemic prevention and control as the focus, the need to speed up the research and development of new vaccines and special drugs. At this time, companies related to new crown drugs or vaccines are on the cusp and are more likely to be favored by investors for financial support.

new coronary pneumonia epidemic has posed significant challenges to the supply chain procurement of biopharmaceutical companies around the world, especially upstream suppliers, which are facing manpower shortages, increased costs, cash flow constraints and increased supply chain uncertainty, and prolonged delivery of consumables and reagents. In addition, as of December 29, 2021, nearly 3 billion doses of the new crown vaccine were vaccinated in China and nearly 2.5 billion doses were exported, and the use of a large number of new crown vaccines has led to a surge in demand for upstream raw materials and equipment for the production of new crown products, further stimulating the contradiction between supply and demand.

for biopharmaceutical companies, it is necessary to optimize the supply chain, find alternate suppliers as soon as possible, identify secondary and tertiary suppliers, and increase the inventory of production raw materials to solve the problem of supply chain stability.

According to reports, the global limit of vaccination doses for the new crown vaccine is 12.8 billion doses, and as of September 2021, 7.51 billion doses of the new crown vaccine are needed worldwide to achieve universal immunization against the new crown pneumonia virus. Global (excluding China) new crown vaccine revenues exceeded $30 billion in the first half of 2021, with global limit revenues of $192 billion, compared with a global vaccine market of only $40 billion before the new crown pneumonia epidemic. The current revenue ratio of the new crown vaccine to the traditional vaccine in China is about 3.32:1. Therefore, holding the new crown vaccine vaccine enterprises, is bound to be in the capital, brand, research and development and talent and other aspects of the gap with other enterprises.

, in addition to the size of the market, the development of the new crown vaccine is not a one-time income, with the possibility of vaccine failure due to virus mutation, vaccination rates in low-income countries around the world are extremely low, so in the long run, the development of the new crown vaccine can generate sustainable income for enterprises.

new crown pneumonia vaccine is different from the past, with the support of the government, the progress of drug development has been accelerated, from decades to less than two years, while also accelerating the development of new treatments such as mRNA vaccines. In order to speed up the development of the new crown vaccine, pharmaceutical companies have also begun to establish extensive cooperation to speed up the product development process.

, for example, Junshi Bio has entered into a strategic partnership with Eli Lilly to accelerate the development of therapeutic antibody JS016 at the global level in response to the global epidemic crisis.

there is an oligopoly competition pattern in the global vaccine market, in which GlaxoSmithKline, Sanofi, Mercadon and Pfizer together occupy more than 90% of the vaccine market. GlaxoSmithKline's vaccine business ranks first, with an annual production of about 1 billion doses, while the global demand for the new crown vaccine exceeds 10 billion doses, and the global new crown vaccine is facing a capacity crisis. Therefore, vaccine companies that have developed the new crown vaccine business must quickly expand production capacity or work with global manufacturers through technology licensing to spread the pressure on production capacity.

in China, the production of vaccine companies must be carried out in-house, so there is a need to quickly start a specific production line for the new crown vaccine, build a P3 production plant, and increase capital investment in production capacity.

the production and packaging of the new crown vaccine involves a large number of equipment supplies and packaging materials, such as fillers, media, trypsin, medium borosilicate glass bottles, etc., the high demand downstream is bound to drive the business growth of upstream suppliers.

, and more than 100 percent in 2021 after the new crown vaccine was launched at the end of 2020. Whether it is a multinational company or a local company, the performance is outstanding, and the growth rate of most local companies is higher than the average market growth. Continued demand for vaccination has led to a continued increase in upstream demand.

epidemic, biopharmaceutical companies are subject to supply chain constraints, in order to ensure the rapid and large-scale production of the new crown vaccine, the supply stability and timeliness of upstream suppliers put forward higher requirements, and suppliers should also actively consider giving priority to ensuring the supply of products related to the new crown, improve their own supply capacity, in order to cope with the supply crisis related to the new crown epidemic.

the outbreak of the new crown epidemic has seriously affected the production and transportation of overseas suppliers, the cycle of domestic biopharmaceutical enterprises to purchase imported products has been lengthened, coupled with the surge in domestic demand for research and development and production of new crown vaccines, drugs, etc., resulting in an imbalance between supply and demand, so domestic biopharmaceutical enterprises began to use domestic upstream products.

the country has now incubated a number of high-quality upstream suppliers, in the long run, the outbreak also provides domestic suppliers with the opportunity to enter the global market. Therefore, a solid foundation, improve the level of product quality and guarantee supply, which is also the epidemic under the change of local enterprises to break the situation.