Today Sundia Meditech Company, Ltd. celebrated its recent strong growth at the company's third anniversary party in Shanghai. The main business of this company is to provide contracted research (CRO) services to pharmaceutical and biotech company clients worldwide. Earlier this week, the company announced a merger in process with United Pharmatech Company, another CRO company in Shanghai.
The centerpiece of the event was a speech by Sundia CEO Dr. Wang Xioachuan. Her presentation laid out Sundia's past and stressed the need for continued expansion. Last year, Sundia's revenue grew more than 5 times over the year before, and became profitable the whole year, recovering all losses from the company's initial stage. This year the company is expecting to more than double its revenue and profit (excluding merger impact) and will keep the same growth pace for the next three years. This fast development pace excited all shareholders, including the famous venture capital investment company IDG VC, who made an investment into Sundia in the very early stages of the company in 2005.
Sundia has more than doubled its lab and office space each year for all three years of its history, and Dr. Wang presented a plan for the construction of new buildings, including a pilot plant for API (Active Pharmaceutical Ingredient) manufacturing at one of five possible new locations. These proposed expansions for Sundia could take the company as far away as Nanjing, about 400 km away from Shanghai, or remain as close as the newly-developed east section of Zhangjiang HiTech Park, where the company was established three years ago.
"We're happy to see what progress Sundia has made from when we started with just three employees," said Dr. Wang. In her presentation, she stressed that Sundia would succeed based on the trust they had built with their clients, over 80% of whom work with Sundia on a full time equivalent (FTE) basis, a good indicator for the operating stability and quality of a CRO company.
Mr. Ye Qianjun, Vice President of Zhangjiang Group Company, the government-backed entity which developed Zhangjiang HiTech Park into China's best high-tech park and the number one high-tech company incubator, called on Sundia shareholders and employees to seriously consider his invitation to stay in Zhangjiang, although other development areas in the country offered Sundia more incentives in land usage, tax benefits and such. "We will try our best to help Sundia in many ways. We saw your start-up in Zhangjiang, we saw your growing up in Zhangjiang, and we want to see your growing into a giant and we want to succeed together with you in Zhangjiang," Mr. Ye said emotionally.
Dr. Chen Liqing, a faculty member of University of Alabama in Huntsville, who came to Shanghai specifically for the event, told the audience the story about how he mortgaged his house in America to invest in Sundia when the company was just half a year old and with an unclear future ahead. "This may be the best decision I made in my lifetime. Thank God I don't have to worry about living in the street now, he joked.