Research On Profit Model Of CRO Enterprises

In recent years,the pharmaceutical industry has gradually become an area of concern.With the revision and improvement of FDA's new drug approval system,the state's new drug approval is more stringent.With the development of science and technology,new drug R&D is becoming more and more complex.Pharmaceutical enterprises begin to outsource more R&D work to CRO enterprises to reduce costs.In recent years,a large number of large international CRO enterprises have entered China,which has obviously stimulated the growth of new drug R&D activities in China,and also led to the development of the local CRO industry.With the listing of domestic CRO enterprises such as Wuxi AppTec,China's CRO industry has further developed rapidly with the support of the capital market.But CRO as a new industry,people in China don't know it very well,and the related research in China is also very insufficient.As the leader of CRO enterprises in China,Wuxi AppTec passed the IPO rapidly in March 2018,and performed very well after its listing.Profit model,as the basis of creating value for enterprises,is the best entry point to study the profitability and profitability quality of enterprises.Does Wuxi AppTec's excellent performance in the stock market show that its profit model is superior to other enterprises in the industry?Firstly,the author reviews the literature and defines the concept of profit model,which is the theoretical background of the study.Secondly,the author summarizes the basic situation of CRO industry and the basic situation and business scope of Wuxi AppTec,which is the practical background of the study.After combining the theoretical and practical background the author formally starts to carry out the research.In this part,the author finds that there are two prominent characteristics of Wuxi AppTec's profit model: the layout of the whole industry chain,and the internationalization of Wuxi AppTec's profit model through mergers and acquisitions and the establishment of branch offices.In view of these characteristics,the author analyzed the dynamic layout of Wuxi AppTec's profit model combined with its development trajectory.In order to assist in explaining the more abstract profit model,the author also analyzed the elements of Wuxi AppTec's profit model combined with Wuxi AppTec's situation.Finally,the author preliminarily analyzed the possible impact of this profit model on Wuxi AppTec.In order to further study the impact ofprofit model on Wuxi AppTec,the author also carries out further analysis from the perspective of financial impact.Finally,it is found that the layout of the whole industry chain can make CRO enterprises better adjust their business layout,thereby enhancing their profitability.Continuous mergers and acquisitions of foreign excellent scientific research enterprises and opening international offices have a positive impact on the profitability of CRO in the long run.In this study,we have a general understanding of the profit model of CRO industry.At the same time,taking Wuxi AppTec as the research object,we deeply explore and analyze its profit model.We can not only analyze the factors that may affect Wuxi AppTec's profit level,but also bring some inspiration to the profit model of domestic CRO enterprises through the research of excellent CRO enterprises.This study is of great practical significance.