CXO in Pharma refers to a publicly traded company that deals with the outsourcing of pharmaceutical research and development and manufacturing.
The essence of a CXO company is outsourcing, i.e., giving professional things to professional people to do, which is a concrete embodiment of the social division of labor. Outsourcing R&D activities is a win-win situation for both pharmaceutical companies and CRO companies. Pharmaceutical companies can save time, money and energy to organize more meaningful activities, while CRO companies can earn profits while further accumulating experience and technology. But for pharmaceutical companies, you can't outsource all your business, you must have your own core competencies for survival and development.
2. What does CXO include?
CXO is the collective name of CRO (pharmaceutical contract research organization), CMO (pharmaceutical contract custom manufacturing enterprise), CDMO (pharmaceutical contract research and development production organization). These are originated in the United States in the 1980s, put together to explain is through the contract form for pharmaceutical companies, medical institutions, medical device agencies and other pharmaceutical subjects to provide specialized research and development services.
CRO is the abbreviation of English contract research organization, directly translated from the contract research organization. The main work is to accept the commission of pharmaceutical companies to carry out research and development. Because CROs have rich R&D experience and mature processes as well as good relationships with clinical organizations, the R&D efficiency of CROs is higher than that of pharmaceutical companies.
The letter X in the middle of the CXO company is equivalent to our Chinese word for certain, and you can substitute the initial letter of the specific word into X when applying it, such as CMO company means contract manufacturing (manufacturing) organization, and CSO means contract sales (sale) organization.
CSO company is to accept the commission for marketing, refers to stand in the enterprise's point of view, including strategy, planning, sales and other activities.CMO company is to accept the commission for production, to undertake the process has been determined by the production of the project, the technical content is relatively low. Some CMO companies have the ability to carry out process research and development, can intervene in the preclinical research stage of the project, accordingly in the middle of the CMO plus a D (development), that is, CDMO company.