The Effects of Transforming the CDMO Strategy on the Business Performance of Porton Based on Financial Statement Analysis

Contract Development and Manufacturing Organization (CDMO) refers to customization, development, and production in the medical field and is a newly emerging research and development (R&D) outsourcing model in the medical field. The target of this paper was to explore how the CDMO strategy transformation of Porton Fine Chemicals Ltd. (Porton) will affect the company’s business performance. This paper employed the method of financial statement analysis to investigate the operating performance of Porton. In order to better utilize the CDMO strategy to improve business performance, this paper concluded that enterprises should vigorously develop their Contract Research Organization (CRO) businesses, strive to increase production capacity, and improve their credit policies so as to control the proportion of accounts receivable. The contribution of this paper was to analyze the impact of Porton’s CDMO transformation strategy on the business performance of the company and provide ideas for the development of other companies, especially those in the pharmaceutical industry, to accomplish CDMO transformation and improve business performance.