Client Cases

New Opportunities for Pharmaceutical Companies to Cross Over into Functional Skincare | Shengwei Pharmaceutical & Leibo Cosmetics CDMO Enables Full-Chain Empowerment, Creating a Closed Loop for th

With the continuous upgrading of national skincare consumption, the functional skincare sector has entered a period of high-quality growth with a scale of hundreds of billions of yuan. Unlike traditional beauty products, skincare products that are co-created by medical research and development, supported by pharmaceutical scientific research, centered on clinical efficacy, and based on safety and compliance, have become the core driving force for industry growth. This has also allowed many pharmaceutical companies with strong R&D capabilities to see new growth opportunities through cross-industry expansion.

The 2026 Pharmaceutical Raw Materials, Technology, and Channels Empowering Innovation and Development of the Beauty Industry Exchange Conference successfully concluded at the CPHI exhibition in Shanghai New International Expo Centre, Pudong. The conference focused on the integration and innovation of the pharmaceutical and beauty industries, deeply exploring new trends, technologies, and pathways for cross-industry development. Li Chenliang, Chairman of Lebo Cosmetics and Dean of the Oriental Beauty Valley Functional Skincare Research Institute, was invited to attend the roundtable forum, where he discussed the new transformation of the "Pharmaceutical Empowering Beauty" industry with leading figures in the sector, deeply analyzing the opportunities, pain points, and breakthroughs for pharmaceutical companies crossing over into the skincare field.

Innovation in the pharmaceutical industry: From "skincare" to "skin health management," pharmaceutical companies are entering a golden period of strategic development.

The market for functional skincare continues to expand, with a consistently high compound annual growth rate, indicating a fundamental shift in the industry's development logic. Consumers' skincare needs are no longer limited to basic moisturizing and surface care, but have evolved into scientific, precise, and long-term skin health management. The explosive growth in demand for refined interventions for various skin problems such as inflamed skin, sensitive skin, damaged skin barrier, and skin aging has made the synergistic model of "medicine + beauty" the mainstream development trend in the industry.

At the forum, Dean Li Chengliang pointed out that functional skincare in the new era is essentially an important part of a healthy lifestyle. The diagnosis, treatment, and long-term care of various skin problems in the future will inevitably rely on a synergistic model of "clinical medical intervention + functional skincare product care," and this integrated approach holds enormous market growth potential.

For companies deeply rooted in the pharmaceutical field, venturing into the functional skincare sector is far more than a simple business diversification; it represents a secondary release of their core technological value. Pharmaceutical companies possess mature active ingredient R&D capabilities, rigorous safety and quality control systems, and a comprehensive clinical research approach, which are the core sources of technological barriers in the functional skincare industry. However, looking at the current state of the industry, most pharmaceutical companies facing cross-industry transformation generally encounter the development dilemma of "having the technology but struggling to implement it, having the raw materials but struggling to create products."

In-depth analysis: The three core barriers and misconceptions of pharmaceutical companies crossing over into the beauty industry.

In the public's perception, pharmaceutical companies venturing into skincare is often seen as a "game-changer." However, in practice, the differences in industry logic, R&D thinking, and product standards between pharmaceuticals and cosmetics are significant, becoming hidden barriers for pharmaceutical companies' transformation. In his roundtable discussion, Dean Li Chenliang precisely analyzed the industry pain points, bluntly stating that pharmaceutical companies entering the skincare market are like "boxers with their hands and feet tied"—possessing high-quality pharmaceutical raw materials and core technologies, yet limited by industry thinking and systems, making it difficult to commercialize them into cosmetic products.

Specifically, pharmaceutical companies facing cross-industry expansion mainly encounter three core barriers:

1. Differences in R&D thinking: From "single-target treatment" to "multi-dimensional skin care"

The core logic of pharmaceutical R&D is single-component, single-target, and symptom-specific treatment, focusing on precise intervention for a single disease. In contrast, the core of functional skincare is to solve consumers' comprehensive skin problems, requiring the simultaneous achievement of multiple dimensions of efficacy, including repair, moisturizing, anti-inflammation, anti-aging, and brightening. The rigid, singular R&D mindset of pharmaceutical companies is ill-suited to the market demands for complex formulas, diverse effects, and scenario-based applications in skincare products.

2. Differences in safety standards: Cosmetics have stricter safety thresholds and more complex application scenarios.

There is a common misconception in the industry that pharmaceutical safety standards are higher than those for cosmetics. This is not the case. Pharmaceuticals are designed for specific patient groups and are used for short periods under a doctor's guidance, allowing for manageable side effects. Cosmetics, on the other hand, are intended for healthy individuals of all ages and are used long-term, over large areas, and frequently. Therefore, the standards for gentleness, safety, and non-irritation are much stricter, and the margin for safety errors is much lower. This is the most common hidden pitfall for pharmaceutical companies venturing into this field.

3. Product System Differences: From "Efficacy First" to "Dual Standard of Efficacy + Experience"

Pharmaceutical formulation development focuses solely on the stability, bioavailability, and therapeutic effects of active ingredients; however, commercial skincare products, in addition to core efficacy, must also consider multiple consumer attributes such as skin feel, scent, texture, appearance, and user experience. High-quality pharmaceutical active ingredients may not be suitable for the needs of skincare products. Balancing core efficacy with an optimal user experience is a crucial formulation gap that pharmaceutical companies must overcome in their transformation.

23 years of dedicated development: A four-dimensional integrated industrial closed loop, empowered by the dual platforms of Shengwei Pharmaceutical and Leibo Cosmetics, solidifying the foundation for medical research and translation.

With 23 years of experience in the functional skincare field, Lebo Cosmetics has always adhered to the core philosophy of "taking market competition as the end point and defining the starting point of medical research and development," deeply cultivating the transformation of pharmaceutical technology achievements and breaking down the barriers between scientific research and the market. Relying on the specialized technology and intelligent manufacturing capabilities of its wholly-owned subsidiary , Shengwei Pharmaceutical (Shanghai) Co., Ltd. , the two parties have formed the Shengwei Pharmaceutical·Lebo Cosmetics dual-industry platform. They have now built a four-dimensional integrated closed-loop industrial chain encompassing raw material innovation, formula development, efficacy verification, and intelligent manufacturing, creating a complete service system from upstream raw material research and development, midstream product customization, and downstream brand incubation, forming a group-based, professional, and differentiated cosmeceutical technology service matrix.

As the group's core technology manufacturing platform, Shengwei Pharmaceutical is a Shanghai high-tech enterprise and a specialized and innovative SME. It focuses on the research and development of plant-based active ingredients, innovative dosage form development, and customized intelligent manufacturing services, possessing over fifty national invention patents. Its core expertise lies in areas such as topical skin preparations, natural plant extracts, and active ingredient stabilization technology. The deep collaboration and complementary technologies between Shengwei Pharmaceutical and Leibo Cosmetics platforms completely break away from the traditional OEM industry's extensive model of "passively accepting orders and simply producing." This deeply adapts to the transformation needs of pharmaceutical companies, specifically addressing a series of pain points encountered by pharmaceutical companies during cross-industry transitions, such as disconnected thinking, unsuitable formulations, dosage form limitations, compliance difficulties, and slow implementation. It helps pharmaceutical companies efficiently transform their core pharmaceutical technologies into market-ready, compliant, safe, and differentiated skincare products.

In the fields of core dosage forms and innovative technologies, Shengwei Pharmaceutical's Leibo Cosmetics has built a dual-core technological barrier, precisely matching the technological advantages of pharmaceutical companies in high-activity ingredients and high-precision R&D: relying on its core freeze-drying technology to cover nine major skincare categories, it has innovatively broken through the limitations of traditional freeze-drying technology, extending to diverse application scenarios such as freeze-dried makeup, with an annual production capacity of up to 305 million sets; its unique BFS aseptic blow-fill-seal technology perfectly solves the industry pain points of easy inactivation and instability of high-activity ingredients; its self-developed Scopid-Lc biomimetic emulsification technology accurately simulates the structure of the stratum corneum of human skin, with inherent repair, moisturizing, and sustained-release advantages, resulting in a smooth and delicate skin feel; and its innovative microbead suspension system achieves a breakthrough in water-oil isomorphic formulations. Meanwhile, Shengwei Pharmaceutical is deeply involved in specialized technologies such as natural plant active ingredients, histamine release inhibition, and skin microecological regulation, with multiple core patents enabling the long-lasting efficacy of its products, adapting to the diversified development of high-end skincare products and the technology transformation needs of pharmaceutical companies.

A comprehensive CDMO service matrix | Shengwei Pharmaceutical & Leibo Cosmetics: One-stop empowerment for pharmaceutical companies to enter the new skincare market.

For pharmaceutical companies with different stages and needs, Lebo Pharmacy has created a tiered, full-chain, and customized CDMO service system, covering the entire process from raw material innovation, product development, intelligent manufacturing, compliance filing, and brand incubation, comprehensively reducing the barriers for pharmaceutical companies to cross over into the industry.

1. Joint Services for Raw Material Innovation: Activating the Core Technological Advantages of Pharmaceutical Companies

For pharmaceutical companies with unique raw materials and active pharmaceutical ingredients, Lebo Cosmetics offers in-depth cooperation in areas such as customized raw material development, joint technical research, and patent co-creation. This helps pharmaceutical companies transform their own pharmaceutical raw material advantages into exclusive formula barriers and core product competitiveness, enabling them to achieve technological differentiation and breakthrough.

2. ODM full-service customization: Rapidly launch market-leading products

For pharmaceutical companies looking to quickly establish themselves in the skincare market and build their own product portfolio, Lebo Pharmacy offers a complete closed-loop service, from product concept co-creation and blockbuster product logic development to formula R&D and prototyping, packaging design and integration, and intelligent production and delivery. Leveraging a reserve of over 10,000 mature formulas, a flexible production system, and mature supply chain resources, Lebo helps pharmaceutical companies quickly launch products from scratch and seize market opportunities.

3. OBM Brand Incubation Services: Long-term strategy for brand development

For pharmaceutical companies that are deeply involved in the pharmaceutical field but lack experience in operating beauty brands, Lebo Cosmetics provides comprehensive brand empowerment, covering one-stop services such as brand positioning, visual system construction, product line planning, content marketing planning, and market channel promotion. This helps pharmaceutical companies complete the full upgrade from "product production" to "brand operation" and achieve a long-term, branded layout.

4. Efficacy testing and compliance filing services: Strengthening the bottom line of compliant operation.

Leveraging its proprietary Meigu Labs testing platform, we provide pharmaceutical companies with independent R&D and production capabilities with a full range of compliance services, including professional efficacy testing, formula compliance screening, product registration and application, label review, and risk assessment. We provide comprehensive support for the compliant launch of our products, ensuring that the pharmaceutical companies' professional technical advantages become a core endorsement of their market credibility.

Proven track record: 23 years of dedicated service, empowering over 30 brands with sales exceeding 100 million RMB.

For many years, Lebo Cosmetics has successfully served hundreds of well-known domestic and international skincare brands, creating numerous phenomenal best-selling products and winning multiple authoritative industry awards both domestically and internationally. Many of its products have been featured in top livestreaming platforms, mainstream e-commerce channels, and offline cinemas. To date, among the brands incubated and operated by Lebo, over 30 have achieved annual sales exceeding 100 million yuan, demonstrating its proven market penetration and best-selling product creation capabilities.

Mutual empowerment and win-win cooperation will usher in a new future for the integration of cosmeceuticals and pharmaceuticals.

"For pharmaceutical companies to venture into functional skincare, the core is to combine the rigorous technology of pharmaceutical manufacturing with the market-oriented mindset of cosmetics." This is the core insight of Dean Li Chenliang, who has been deeply involved in the industry for many years, and it is also the core mission of Lebo Cosmetics in serving pharmaceutical clients.

Leveraging its comprehensive CDMO full-chain service system, Lebo Pharmacy brings multiple core values to cross-industry pharmaceutical companies: lower trial-and-error costs, eliminating the need to build R&D, production, compliance, and operations systems from scratch, and enabling rapid market entry through a mature platform; faster time to market, with integrated end-to-end services shortening the product launch cycle by more than 40%, allowing for precise capture of market opportunities; stronger technological barriers, utilizing medical research co-creation technologies, exclusive dosage form patents, and unique raw material systems to avoid homogeneous price wars; more stable compliance guarantees, with full-process compliance screening and filing services to solidify brand trust; and more comprehensive growth opportunities, with tiered services tailored to different stages of enterprise development, accompanying clients on long-term growth and continuous iteration.

With pharmaceuticals as its foundation and skincare as its wings, and with the integration of cosmeceuticals becoming an industry trend, Shengwei Pharmaceutical·Laibo Cosmetics will continue to leverage its 23 years of medical research and development, specialized patented technologies, and intelligent manufacturing advantages to further cultivate the efficacy skincare CDMO sector. It will connect the core technologies of the pharmaceutical industry with the consumer demands of the beauty market, continuously empowering pharmaceutical companies to cross-industry ventures, exploring the unlimited potential of the skin health industry, and contributing to the high-quality and standardized development of China's efficacy skincare industry through scientific skincare principles.

Business inquiries: Ms. Cheng

Contact number: 19916566860 (WeChat ID is the same)

Official email: [email protected]

Official website: www.laibo.com.cn

Company Address: Building 4, No. 1979 Chenqiao Road, Fengxian District, Shanghai