Accelerating the mass production and market launch of innovative drugs worldwide, Acloudear enjoys exceptional clients!

In recent times, the winds of change in the capital markets have once again swept through the innovative drug sector. Driven by a series of policy incentives and technological breakthroughs, the innovative drug segment has shaken off its previous stagnation and experienced a long-awaited strong rebound, once again placing the entire biopharmaceutical industry under the spotlight.

This surge is not without foundation; it reflects the genuine echoes of the global biotechnology revolution. Complex biopharmaceuticals such as antibody-drug conjugates (ADCs) and cell and gene therapy (CGT) are emerging, bringing new hope for conquering intractable diseases while also posing unprecedented challenges to their research, development, and production.

It is precisely in this innovative ‘gold rush’ that CDMO companies, as the ‘water sellers’ serving innovative pharmaceutical companies, are seeing their strategic value increasingly highlighted.

However, this ‘water’ is not easy to sell.

The CDMO industry is actually quite complex. It is not only a capital- and technology-intensive sector requiring companies to make sustained long-term investments in advanced production capacity and process iteration, but it is also project-driven and subject to fluctuating demand. Customer needs can fluctuate dramatically depending on the progress of research and development and clinical results, posing a significant challenge to a company’s resource planning and supply chain flexibility.

Most importantly, it operates under the world’s strictest GxP regulatory framework, where even minor deviations can lead to major setbacks in new drug projects. The technical and regulatory barriers are self-evident.

In such a sector where opportunities and challenges coexist, and where the pursuit of excellence is taken to the extreme, how can one stand out and go from local to global? Against this backdrop, a leading domestic biopharmaceutical CDMO company provides a model for high-quality development.

O1. 

Committed to becoming a global leading CDMO company  

This CDMO company, with R&D and production bases in both China and the United States, is dedicated to providing comprehensive end-to-end solutions for global innovative drug R&D institutions. However, on the path of rapid expansion, the company also encountered the common challenges faced by high-growth enterprises, with internal operational bottlenecks becoming evident.

The core challenge lies in the disconnect between its business operations and financial accounting systems, leading to significant delays in cost allocation and revenue recognition centred around projects. This not only prevents managers from accurately assessing project profitability in real time but also significantly reduces budget control and resource utilisation efficiency.

The root cause of this disconnect lies in the data silos created by multiple heterogeneous systems, which lack unified data standards, preventing information from flowing smoothly throughout the entire process. In essence, the company’s existing IT architecture is no longer capable of supporting efficient and compliant growth in the high-standard, fast-paced global market. 

02.

Choosing Acloudear to lay the foundation for the future

The company’s management team also recognised that what they needed was not a simple software upgrade, but a stable and flexible digital core that could support the company’s development over the next decade. After careful evaluation, they turned their attention to SAP, the global leader in enterprise management software, and its platinum partner Acloudear.

The Acloudear team deeply understood the company’s pain points and vision, leveraging SAP Cloud ERP to tailor an end-to-end digital solution centred on business-finance integration. This solution comprehensively enhances the company’s digital management capabilities across procurement, sales, small-batch production, project management, and finance, delivering significant benefits:

1) Business-finance integration on a unified platform

The new system has completely broken down the barriers between production, procurement, supply chain, and finance, establishing unified master data and business data standards. From a procurement request to final payment, and from a production order to detailed cost calculation, all business data flows seamlessly and in real-time into the financial system, truly achieving a closed-loop management system where ‘business drives finance.’

2) Real-time insights to drive precise decision-making

The unified platform provides timely, comprehensive, and multi-dimensional reporting systems and analytical tools. Managers can now gain real-time insights into the cost structure, budget execution status, and profitability of each project, enabling decisions based on precise data rather than intuition.

3) Global operations

SAP systems inherently support multi-company, multi-language, and multi-accounting standard capabilities, perfectly addressing the challenges of cross-border operations for this enterprise. Whether it is Chinese Generally Accepted Accounting Principles (China GAAP) or US Generally Accepted Accounting Principles (US GAAP), the system can process both in parallel, easily generating financial statements that meet different regulatory requirements, providing a solid financial compliance guarantee for the company’s ‘going global’ strategy. 

This case study of a leading CDMO company is a vivid example of how Chinese biopharmaceutical companies can drive global development through strategic digital transformation. Through collaboration with Acloudear, the company has built a robust operational engine that is agile, compliant, and capable of adapting to future market changes. 

For all CDMO companies with global ambitions, this practical example offers a clear insight: on the path to becoming world-class, digital capabilities are not an option but a necessity for building core competitiveness. 

This article "Accelerating the mass production and market launch of innovative drugs worldwide, Acloudear enjoys exceptional clients!" by AcloudEAR. We focus on business applications such as cloud ERP.

Scanning QR code for more information