Jinwu Financial News | According to China Merchants Securities Research Report, Yao Ming Biotech (02269) announced the launch of PawBio's one-stop solution for animal health biopharmaceuticals in early November. The bank believes that as a leader in the human biopharmaceutical CDMO industry, the company has rich project experience, leading service quality, and high customer recognition. Currently expanding its business into the field of animal biopharmaceuticals, it is expected to bring new business growth to the company.

The bank said that with changes in the population and family structure, pets have become an important partner for emotional sustenance and daily companionship for more and more people. Mars recently released the largest pet research report with global coverage and sample data. The report shows that “the current number of pets in the world has exceeded 1 billion.” As the number of pets continues to rise, demand for animal drugs continues to grow. The global animal drug market is about 48 billion US dollars in 2023, and is expected to reach 75-90 billion US dollars (CAGR of 4-6%) by 2033. Similar to human medicine, animal drug research and development also requires high R&D investment. Take Zoetis, the world's largest animal drug company, as an example. In 2023, it achieved revenue of 8.544 billion US dollars (yoy +5.74%) and R&D expenditure of 0.613 billion US dollars (yoy +13.94%).

The bank is optimistic about Pharmaceutical Biotech's CRDMO business model and occupies a leading position in the global biopharmaceutical CDMO field with its leading technical platform and high-quality service capabilities. The company has now launched a one-stop solution for animal health biopharmaceuticals, which is expected to bring new performance increases to the company. The bank expects to achieve revenue of 17.9, 19.9, and 22.3 billion yuan and net profit of 3.2, 3.6, and 4.1 billion yuan in 2024-2026, corresponding to PE of 17, 15, and 13 times, maintaining an “increase in holdings” investment rating.