The Research On WuXi App Tec’s Profit Model

At present,the introduction of a number of national policies encourages pharmaceutical companies to transform from generic drugs to innovative drugs.As a "water seller" in the pharmaceutical industry,CXO has become more and more important in the pharmaceutical manufacturing industry chain.However,the domestic CXO industry started late,most companies in the industry have incomplete value chains,or adopt a lean profit model in a certain link,making their core competitiveness not obvious.In this context,Wu Xi App Tec,which has an integrated profit model of pharmaceutical R&D and production outsourcing value chain,is far ahead in market competition,ranking first in the industry in terms of asset size and profit level.Taking Wu Xi App Tec Group,a leading enterprise in the pharmaceutical CXO industry as an example,this paper adopts case study method and comparative study method,and summarize the existing research results and give the theoretical basis of the full text,including value chain theory,profit model theory,synergy effect theory and core competitiveness theory,and on this basis,study the composition of Wu Xi App Tec’s profit model and the influence on its formation.First,based on the value chain perspective,the layer-by-layer construction of Wu Xi App Tec’s value chain is divided according to time periods,to understand the dynamic layout of its value chain,and use it to the value chains of other companies to intuitively reflect its integrated layout by comparison.Secondly,according to the five-element theory of profit model,the profit model of Wu Xi App Tec is specifically split,and the measures taken are deeply analyzed in combination with the industry environment.Then,from a financial point of view,by comparing with the indicators of enterprises in the same industry,the effect of their profit model can be directly reflected;on this basis,combined with some non-financial indicators with industry characteristics,a more comprehensive and objective evaluation is carried out;and according to the effect analysis,summarize the advantages and disadvantages of the profit model.Finally,according to the above-mentioned analysis,the essay would give some advice to Wu Xi App Tec for better development,and the parts of Wu Xi App Tec’s profit model that can be used for reference are summarized for reference by other CXO companies.After the overall analysis,this paper finds that Wu Xi App Tec’s profit model has brought obvious advantages to the company: obvious revenue growth,stronger customer stickiness,and stable industry position.But in the meanwhile,there is still something to pay attention to,such as synergistic reaction and merger risk.The research on Wu Xi App Tec in this paper also has a draw lesson for other CXO companies,and has certain practical significance.