Latest news with #ShanghaiTitanScientific
Yahoo
6 days ago
- Business
- Yahoo
China pharma firms turn to local reagent suppliers to cut costs and delivery times
By Andrew Silver SHANGHAI (Reuters) -Pharmaceutical research and development firms in China are increasingly interested in procuring critical supplies known as reagents from local manufacturers, industry executives and managers said, as they seek to cut costs and delivery times. Western reagent suppliers including U.S.-based Thermo Fisher Scientific and Germany's Merck have profited in the world's second-largest pharmaceutical market from the compounds used in lab tests for analysis and quality control. But rising Chinese import tariffs due to the trade war with the U.S. and longer-term concerns about costs or access are spurring Chinese companies to request products from local rivals like Shanghai Titan Scientific and Nanjing Vazyme Biotech instead, the executives and managers said. The five who spoke to Reuters work at Chinese firms involved in the purchase or supply of reagents and their comments are an early sign of an expected industry shift toward more Chinese purchases. China's reagent market for lab and diagnostic use has been to some extent supplied by imports, which were valued at $5.76 billion in 2024, down slightly from $5.83 billion in 2023, according to U.N. Comtrade data. "It is actually more advantageous (for reagents to be local) because the timeliness requirement is high," said Ma Xingquan, co-president of pharmaceutical research firm ChemPartner PharmaTech. Most reagents it uses in its pre-clinical work are products that are made in China by firms including Titan and Shanghai Aladdin Biochemical Technology, he said. ChemPartner's usage of locally made reagents would probably increase further as new products become available, Ma added. TARIFF BUMP The rush to use domestically made reagents has accelerated since April, the month China raised duties on U.S. goods to 125%, a manager at Titan and an executive at Vazyme said, though the levies have since been lowered as Beijing and Washington continue trade talks. Some Chinese drugmakers were worried about tariff policy uncertainty, Titan product manager Yang Dong said. Since April, more than 90% of Vazyme's customers have discussed replacing imported reagents with its products, Vazyme Senior Vice President Xu Xiaoyu said. "Before April, customers were only saying long term, they hope to be able to replace (reagents) with those locally made, it would be better," Xu said. "But to customers these tariffs are like a shock in a short period of time. They clearly felt this type of direct impact... their impetus (for replacement) will be stronger." Titan and Vazyme are both forecast to report strong sales growth this year, according to brokers. China International Capital Corp expects Titan's annual revenue to grow 22% to 3.52 billion yuan ($490.39 million) this year, while Vazyme's revenue is set to rise 15% to 1.59 billion yuan over the same period, according to Soochow Securities. "There is still a lot of room for substitution of imported biological reagent enzymes, clients are strongly interested in locally-made replacements," Soochow said in a recent note. Shares in Titan and Vazyme have risen about 54% and 18% respectively since the start of the year. Merck and Thermo Fisher shares have fallen about 21% and 8% respectively over the same period. CHINA CHALLENGES Morningstar analyst Max Jousma expects China's reagents market to grow more than 10% annually over the next five years, driven by government support for the biotech and pharmaceutical sectors and growth in research and development activity and in-vitro diagnostic testing. Merck and Swiss diagnostics group Roche Holding are moving some of their reagent production closer to their Chinese customers. In 2023, Merck announced plans to invest 70 million euros ($81.35 million) in a reagents facility in Nantong that is on track to begin operations next year. Merck declined to comment on any short-term shifts in ordering patterns from Chinese customers. "The decision to invest in reagent manufacturing in Nantong reflects our commitment to supporting the growing needs of life science and biopharma customers in China and the broader Asia-Pacific region," it said in a statement. Roche is expanding production, laboratory and logistics facilities from 2028 in Suzhou, where it produces reagents for diagnostic systems, the company said in a statement. The expansion will help it meet increasing demand for diagnostic solutions in China and parts of Asia-Pacific, it said. Thermo Fisher declined to comment on its reagent sales and strategy to compete against local manufacturers in China, citing a policy of not providing details of its business by product line or country. Chinese drugmakers that use reagents from Western companies and are looking to purchase substitutes from local firms will face some challenges given the products are difficult to switch during or after the regulatory approval process because of a need for material consistency, industry experts said. "Switching reagents will cause significant disruption and delay for drug development," said Huang Linfeng, a scientist specialising in RNA biology at Duke Kunshan University. Another hurdle is manufacturer access to technology or processes, some of which could still be protected under patent or not disclosed, said Cheng Shaojun, a vice-general manager at supplier Fu Chen (Tianjin) Chemical Reagents Co. "(Reagent) production equipment is also not necessarily able to be bought," he added. ($1 = 0.8605 euros) ($1 = 7.1779 Chinese yuan renminbi)
Reuters
6 days ago
- Business
- Reuters
Focus: China pharma firms turn to local reagent suppliers to cut costs and delivery times
SHANGHAI, Aug 14 (Reuters) - Pharmaceutical research and development firms in China are increasingly interested in procuring critical supplies known as reagents from local manufacturers, industry executives and managers said, as they seek to cut costs and delivery times. Western reagent suppliers including U.S.-based Thermo Fisher Scientific and Germany's Merck ( opens new tab have profited in the world's second-largest pharmaceutical market from the compounds used in lab tests for analysis and quality control. But rising Chinese import tariffs due to the trade war with the U.S. and longer-term concerns about costs or access are spurring Chinese companies to request products from local rivals like Shanghai Titan Scientific ( opens new tab and Nanjing Vazyme Biotech ( opens new tab instead, the executives and managers said. The five who spoke to Reuters work at Chinese firms involved in the purchase or supply of reagents and their comments are an early sign of an expected industry shift toward more Chinese purchases. China's reagent market for lab and diagnostic use has been to some extent supplied by imports, which were valued at $5.76 billion in 2024, down slightly from $5.83 billion in 2023, according to U.N. Comtrade data. "It is actually more advantageous (for reagents to be local) because the timeliness requirement is high," said Ma Xingquan, co-president of pharmaceutical research firm ChemPartner PharmaTech ( opens new tab. Most reagents it uses in its pre-clinical work are products that are made in China by firms including Titan and Shanghai Aladdin Biochemical Technology ( opens new tab, he said. ChemPartner's usage of locally made reagents would probably increase further as new products become available, Ma added. The rush to use domestically made reagents has accelerated since April, the month China raised duties on U.S. goods to 125%, a manager at Titan and an executive at Vazyme said, though the levies have since been lowered as Beijing and Washington continue trade talks. Some Chinese drugmakers were worried about tariff policy uncertainty, Titan product manager Yang Dong said. Since April, more than 90% of Vazyme's customers have discussed replacing imported reagents with its products, Vazyme Senior Vice President Xu Xiaoyu said. "Before April, customers were only saying long term, they hope to be able to replace (reagents) with those locally made, it would be better," Xu said. "But to customers these tariffs are like a shock in a short period of time. They clearly felt this type of direct impact... their impetus (for replacement) will be stronger." Titan and Vazyme are both forecast to report strong sales growth this year, according to brokers. China International Capital Corp expects Titan's annual revenue to grow 22% to 3.52 billion yuan ($490.39 million) this year, while Vazyme's revenue is set to rise 15% to 1.59 billion yuan over the same period, according to Soochow Securities. "There is still a lot of room for substitution of imported biological reagent enzymes, clients are strongly interested in locally-made replacements," Soochow said in a recent note. Shares in Titan and Vazyme have risen about 54% and 18% respectively since the start of the year. Merck and Thermo Fisher shares have fallen about 21% and 8% respectively over the same period. Morningstar analyst Max Jousma expects China's reagents market to grow more than 10% annually over the next five years, driven by government support for the biotech and pharmaceutical sectors and growth in research and development activity and in-vitro diagnostic testing. Merck and Swiss diagnostics group Roche Holding (ROG.S), opens new tab are moving some of their reagent production closer to their Chinese customers. In 2023, Merck announced plans to invest 70 million euros ($81.35 million) in a reagents facility in Nantong that is on track to begin operations next year. Merck declined to comment on any short-term shifts in ordering patterns from Chinese customers. "The decision to invest in reagent manufacturing in Nantong reflects our commitment to supporting the growing needs of life science and biopharma customers in China and the broader Asia-Pacific region," it said in a statement. Roche is expanding production, laboratory and logistics facilities from 2028 in Suzhou, where it produces reagents for diagnostic systems, the company said in a statement. The expansion will help it meet increasing demand for diagnostic solutions in China and parts of Asia-Pacific, it said. Thermo Fisher declined to comment on its reagent sales and strategy to compete against local manufacturers in China, citing a policy of not providing details of its business by product line or country. Chinese drugmakers that use reagents from Western companies and are looking to purchase substitutes from local firms will face some challenges given the products are difficult to switch during or after the regulatory approval process because of a need for material consistency, industry experts said. "Switching reagents will cause significant disruption and delay for drug development," said Huang Linfeng, a scientist specialising in RNA biology at Duke Kunshan University. Another hurdle is manufacturer access to technology or processes, some of which could still be protected under patent or not disclosed, said Cheng Shaojun, a vice-general manager at supplier Fu Chen (Tianjin) Chemical Reagents Co. "(Reagent) production equipment is also not necessarily able to be bought," he added. ($1 = 0.8605 euros) ($1 = 7.1779 Chinese yuan renminbi)
Yahoo
11-04-2025
- Business
- Yahoo
April 2025's Global Insider Favorites For Growth
As global markets grapple with heightened trade tensions and economic uncertainty, investors are closely monitoring the impact of new tariffs on growth prospects. Amid this volatility, insider ownership in growth companies can signal confidence from those who know the business best, offering a potential anchor of stability for investors seeking opportunities in turbulent times. Name Insider Ownership Earnings Growth Zhejiang Jolly PharmaceuticalLTD (SZSE:300181) 23.3% 26% Arctech Solar Holding (SHSE:688408) 37.9% 24.7% AcrelLtd (SZSE:300286) 40% 32% Shanghai Huace Navigation Technology (SZSE:300627) 24.7% 24.3% Seojin SystemLtd (KOSDAQ:A178320) 32.1% 39.3% Vow (OB:VOW) 13.1% 111.2% Laopu Gold (SEHK:6181) 36.4% 39.9% Global Tax Free (KOSDAQ:A204620) 20.8% 35.1% Synspective (TSE:290A) 13.2% 44.5% Fulin Precision (SZSE:300432) 13.6% 74.7% Click here to see the full list of 868 stocks from our Fast Growing Global Companies With High Insider Ownership screener. Let's take a closer look at a couple of our picks from the screened companies. Simply Wall St Growth Rating: ★★★★☆☆ Overview: Seegene, Inc. is a company that manufactures and sells molecular diagnostics products globally, with a market cap of approximately ₩1.09 trillion. Operations: Revenue Segments (in millions of ₩): Insider Ownership: 33.1% Earnings Growth Forecast: 100.5% p.a. Seegene is forecast to become profitable over the next three years, with earnings expected to grow significantly at 100.53% per year, although its Return on Equity is projected to remain low at 7.5%. Trading below estimated fair value and offering good relative value compared to peers, it faces challenges with unsustainable dividends. Recent advancements include the development of CURECA™, a system aimed at automating PCR testing workflows, potentially enhancing laboratory efficiency and reducing human error risks. Delve into the full analysis future growth report here for a deeper understanding of Seegene. Insights from our recent valuation report point to the potential undervaluation of Seegene shares in the market. Simply Wall St Growth Rating: ★★★★☆☆ Overview: Shanghai Titan Scientific Co., Ltd. offers laboratory products and supporting services for scientific researchers and quality control personnel, with a market cap of CN¥3.88 billion. Operations: The company generates revenue of CN¥2.88 billion from its research services segment. Insider Ownership: 28.2% Earnings Growth Forecast: 73.9% p.a. Shanghai Titan Scientific is set for significant earnings growth at 73.89% annually, outpacing the Chinese market's 23.9%. Despite this, revenue growth remains moderate at 13.9%, slightly above the market average of 12.7%. Recent financials show sales increasing to CNY 2.88 billion, yet net income dropped to CNY 12.93 million from CNY 72.57 million last year, reflecting margin pressures with a decline in profit margins from 2.6% to just 0.4%. Take a closer look at Shanghai Titan Scientific's potential here in our earnings growth report. The analysis detailed in our Shanghai Titan Scientific valuation report hints at an inflated share price compared to its estimated value. Simply Wall St Growth Rating: ★★★★★☆ Overview: Medley, Inc. operates recruitment and medical business platforms in Japan and the United States, with a market cap of ¥100.38 billion. Operations: The company generates revenue through its platforms in the recruitment and medical sectors across Japan and the United States. Insider Ownership: 34.5% Earnings Growth Forecast: 23% p.a. Medley is poised for substantial earnings growth, forecasted at 23.03% annually, surpassing the Japanese market's 7.8%. Revenue is expected to grow at 17.5%, outpacing the market's 4.3%. Despite high volatility in share price recently, Medley trades at a significant discount to its estimated fair value. The company has initiated a buyback program worth ¥1 billion to enhance shareholder returns and adapt to share price fluctuations, reflecting strategic insider confidence in its growth trajectory. Get an in-depth perspective on Medley's performance by reading our analyst estimates report here. Our expertly prepared valuation report Medley implies its share price may be too high. Access the full spectrum of 868 Fast Growing Global Companies With High Insider Ownership by clicking on this link. Seeking Other Investments? Find companies with promising cash flow potential yet trading below their fair value. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks analysis only considers stock directly held by insiders. It does not include indirectly owned stock through other vehicles such as corporate and/or trust entities. All forecast revenue and earnings growth rates quoted are in terms of annualised (per annum) growth rates over 1-3 years. Companies discussed in this article include KOSDAQ:A096530 SHSE:688133 and TSE:4480. Have feedback on this article? Concerned about the content? with us directly. Alternatively, email editorial-team@ Sign in to access your portfolio
