FRONTAGE (1521.HK) Covering both China and the US markets, Professional Advantages of “Two Countries, One System” February 17, 2020 288

PSR Recommendation: ACCUMULATE Status: Maintained
Target Price: HKDHKD5.00

The market for CRO is growing rapidly

The global pharmaceutical CRO market size in 2018 was US$55.2 billion and is expected to increase to US$91.4 billion in 2023, with a compound annual growth rate of 10.6%. Market penetration of outsourcing services for global R&D expenditure by a total of 33.7% in 2014 sustained growth to 37.7% in 2018, it is expected to increase to 49.3% in 2023.

Business covers China and the US, taking advantages of “Two Countries, One System”

The company is a fast-growing CRO that provides integrated, science-driven research, analysis, and development services throughout the pharmaceutical discovery and development process to assist pharmaceutical companies in achieving drug development goals. The company has business in both China and the United States, and can effectively capture the growth opportunities in both markets. The company implements the “Two Countries, One System” approach to ensure that customers enjoy the same quality standards, operating procedures and systems in both markets. At the same time, the company can also provide customers with detailed and experienced interpretation of drug development regulations and requirements in both countries. The company serves customers’ drug discovery and development goals by sharing technical expertise and personnel in two countries and leveraging familiarity with the two regulatory systems.

About the author

Profile photo of Leon Duan

Leon Duan
Investment Analyst

Bachelor Degree in Shandong University of Science, and Master Degrees in Chinese University of Hong Kong Faculty of Science and City University of Hong Kong College of Business. Currently cover Pharmaceuticals and Environmental Protection sectors, good at combining analysis with industry prospects and company fundamentals.

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