ShangPharma beats IPO forecast and plans Fengxian facility

By Gareth Macdonald

- Last updated on GMT

Related tags: Active pharmaceutical ingredients, U.s. securities and exchange commission, Active ingredient

ShangPharma has raised $87m through an IPO on the New York Stock Exchange according to a Bloomberg report, beating the $46m to $53m the Chinese CRO forecast.

In a US Securities and Exchange Commission (SEC)​filing the Shanghai firm said it will spend some $15m of the proceeds on construction of a new facility in neighbouring Fengxian.

The contract research organisation (CRO) added that the 460,000 sqft building will produce drug intermediates and active pharmaceutical ingredients (APIs) for both preclinical development and clinical trials

The project is expected to take two years with, according to ShangPharma, the first 200,000 sq ft of manufacturing space due to be operational sometime in 2011.

Growing competition

ShangPharma, which lists Wuxi PharmaTech, Albany Molecular Research, Cerep and Covance as key rivals in its IPO prospectus, also predicted that competition in the contracting sector will increase.

We face competition based on several factors, including the quality and scope of services, the ability to protect confidential information and intellectual property, the ability to be responsive and efficient with respect to customers’ requests, depth of customer relationship and pricing​.”

ShangPharma also suggested that, in China, it is likely to compete more directly with pharmaceutical firms that have invested significant capital in building R&D capacity in the country.

These in-house investments may result in increased competition for qualified personnel. Some of our larger competitors may have greater financial, research and other resources, broader scope of services, greater pricing flexibility, more extensive technical capabilities and greater name recognition than we do.

Furthermore, consolidation within the global pharmaceutical and biotechnology R&D outsourcing markets may create stronger competitors than those we are facing today.

Related news

Show more

Related products

show more

Using SDTM, ADaM, and SEND

Using SDTM, ADaM, and SEND

Formedix | 09-Nov-2022 | Technical / White Paper

This article gives an overview of SDTM, ADaM, SEND and ARM, and discusses how these CDISC standards fit in with the wider clinical trial process, and how...

How to design an effective CRF

How to design an effective CRF

Formedix | 10-Oct-2022 | Technical / White Paper

CRFs and eCRFs are used for gathering patient data during clinical trials. They play a crucial role in helping to assess the safety and efficacy of clinical...

The Complexities of Ophthalmic Drug Development

The Complexities of Ophthalmic Drug Development

Altasciences | 04-Oct-2022 | Technical / White Paper

Ophthalmic drug development comes with a unique set of challenges that can be mitigated by working with an end-to-end solution provider with regulatory...

Because When It's On the Line... Capability Matters.

Because When It's On the Line... Capability Matters.

Baxter BioPharma Solutions | 01-Oct-2022 | Product Brochure

Baxter’s BioPharma Solutions business supports leading pharmaceutical companies in meeting their commercialization objectives by providing scientific expertise,...

Related suppliers

Follow us

Products

View more

Webinars