en.Wedoany.com Reported - Pharmaron announced plans to invest a total of 5 billion yuan to build pharmaceutical intermediates and API production projects, as well as CDMO R&D and manufacturing service bases, in Shaoxing and Hangzhou, Zhejiang Province.
According to the announcement, Pharmaron will construct a project with an annual output of 200 tons of pharmaceutical intermediates and APIs through its wholly-owned subsidiary, Pharmaron (Shaoxing) New Drug Manufacturing Co., Ltd., in the Hangzhou Bay Shangyu Economic and Technological Development Zone in Shangyu District, Shaoxing City. The project plans to acquire 253 mu of new land, with a total estimated investment of 3 billion yuan. The company has previously established mature production facilities in Shaoxing, and its Shaoxing plant passed the U.S. Food and Drug Administration (FDA) Pre-Approval Inspection (PAI) in June 2025. The new project can leverage the quality standard system of the existing plant, helping to shorten the project construction and certification cycle. Pharmaron stated that this investment aims to further expand the production capacity of high-end pharmaceutical intermediates and active pharmaceutical ingredients (APIs), including drugs for treating obesity and diabetes, as well as oncology therapeutics, thereby enhancing the company's CDMO service capabilities across the full cycle from preclinical to commercialization. From a business logic perspective, this investment is primarily intended to address the company's shortcomings in large-scale commercial production of intermediates and APIs. Pharmaron's business is divided into four segments: "Laboratory Services," "Small Molecule CDMO," "Clinical Research Services," and "Large Molecule and Cell & Gene Therapy Services." For a long time, the company has excelled in the front-end "Laboratory Services" segment of CRO, which contributed 8.159 billion yuan in revenue in 2025, accounting for 57.88% of total revenue; while the "CMC (Small Molecule CDMO) Services" segment, focusing on chemistry, formulation process development and manufacturing, contributed 3.483 billion yuan, accounting for 24.71% of total revenue, still showing a certain gap between the two.
Additionally, Pharmaron plans to invest approximately 2 billion yuan in the Qiantang District of Hangzhou to build a new commercial drug production and CDMO R&D and manufacturing service base, expected to be operational by 2029. The company intends to establish a wholly-owned subsidiary, Pharmaron (Hangzhou) New Drug Manufacturing Co., Ltd. (subject to final approval and registration name), to handle the investment, construction, and operation of the base. The company stated that this investment is aimed at further enhancing its capabilities in commercial production and CDMO R&D and manufacturing services for small molecule drugs and novel molecular drugs, supporting the efficient transition of CDMO service project pipelines to late-stage clinical and commercial phases.
Just three months ago, on March 11, Pharmaron entered into a production cooperation agreement with Eli Lilly and Company, involving Orforglipron, the first orally administered small molecule GLP-1 receptor agonist to be submitted for registration. Lilly expects to invest $200 million to support Pharmaron's technical capability building and plans to further expand the scale of cooperation based on subsequent developments.
In a recent institutional survey, Pharmaron disclosed that new orders in the first quarter of 2026 increased significantly. Among them, new orders in the small molecule CDMO segment grew by over 50% year-on-year, primarily driven by large-scale production orders in the late clinical stage.
Regarding the progress of subsequent projects, Pharmaron maintained a relatively cautious stance in the announcement, stating that the investment is based on the company's strategic development needs and its judgment of the industry market outlook. However, uncertainties remain regarding industry development trends, market conditions, and the business expansion capabilities of the management team. The project involves a large investment scale, and factors such as funding sources and usage arrangements, as well as construction progress, may be affected by macroeconomic conditions, financing, and changes in credit policies. The company stated that it will strengthen market research and resource coordination, actively promote project implementation, and take effective measures to prevent and control related risks.
In contrast to the capacity expansion of leading CRO companies like Pharmaron, many CRO enterprises are reducing their capacity. On May 25, Baicheng Pharmaceutical (301096.SZ), which primarily focuses on generic drug CRO, announced that its controlling shareholder is planning a major change in control. The company was listed on the ChiNext board in December 2021, and in 2025, it reported a net loss attributable to the parent company of 90.3955 million yuan, with cumulative losses of approximately 143 million yuan over two years. According to incomplete public information, this is the fourth generic drug CRO company to transfer equity in recent times. In March, Shanghai Zephyr Pharmaceutical Technology Co., Ltd., a CRO company specializing in improved new drugs and complex formulations, was acquired by the state-owned enterprise China Medicine Corporation for 525 million yuan for a 70% stake; in April, Baihua Pharmaceutical (600721.SH) was acquired by Jinhua City State-owned Assets for 890 million yuan to gain control.
This article is compiled by Wedoany. All AI citations must indicate the source as "Wedoany". If there is any infringement or other issues, please notify us promptly, and we will modify or delete it accordingly. Email: news@wedoany.com
