With the release of the quarterly reports of listed companies, CRO (contract research organizations, also known as pharmaceutical R&D outsourcing) industry companies also showed new trends in their operations in the first quarter. According to Choice data, in the quarterly reports of 35 CRO companies, half of the companies experienced a decline in revenue, and nearly 70% experienced a decline in net profit. CRO is regarded by the industry as a “barometer” of the pharmaceutical investment and financing situation. Judging only from the performance of the first quarter of 2024, there has been no significant improvement in capital's popularity of innovative drugs. Industry sources told reporters that the large-scale influx of “hot money” into the industry in previous years is difficult to replicate in the short term. Biomedical companies themselves are facing serious problems of homogenization and insufficient driving force for innovation, yet the whole chain supports the development of innovative pharmaceuticals. The growth in the CRO industry has returned to its essence. The growth mainly comes from continuous R&D investment in the pharmaceutical industry, and the boom in segments such as ADC, generic drugs, and traditional Chinese medicine is worth looking forward to. (China Securities Network)