Chen Shaoxiong, Executive President and Secretary-General of the Shanghai Biopharmaceutical Industry Association
The 18th Frost & Sullivan China Growth, Innovation and Leadership Summit and the 3rd New Investment Conference Life Science New Investment Summit Forum were held in Shanghai from August 28th to 29th, 2024. The forum brought together more than 40 industry leaders, biopharmaceutical companies, medical device companies, investment institutions, and professional service providers. With the theme of "Responding to Changes and Opening New Horizons," all parties discussed new models of investment cooperation, aiming to build a closer, more efficient, and mutually beneficial cooperation network and jointly promote the vigorous development of the domestic and international life science industry.
At this forum, Chen Shaoxiong, Executive President and Secretary-General of the Shanghai Biopharmaceutical Industry Association, shared a keynote speech titled "Strengthening Policy Service Support to Accelerate the Development of the Biopharmaceutical Industry." The speech analyzed and elaborated on the vigorous development trend of Shanghai's biopharmaceutical industry from two dimensions: "Current Situation and Opportunities" and "Policies and Tracks."
Here are the key points of President Chen's speech:
Current Situation and Opportunities
In recent years, the scale of Shanghai's biopharmaceutical industry has continued to expand, showing a strong development momentum. According to reference materials, from 2019 to 2023, the scale of Shanghai's biopharmaceutical industry climbed year by year, with a significant growth rate. In 2019, the manufacturing output value of Shanghai's biopharmaceutical industry was 131 billion yuan, which had reached 186 billion yuan by 2023, with an average annual growth rate of over 4%. It is expected that by 2024, the industry scale will further expand to 960 billion yuan. This series of data fully demonstrates that Shanghai's biopharmaceutical industry is in a golden period of rapid development.
In terms of industrial structure, Shanghai's biopharmaceutical industry shows characteristics of diversified development. It not only covers traditional pharmaceutical and medical device fields but also continuously expands into cutting-edge areas such as cell therapy, gene therapy, and synthetic biology. At the same time, the proportion of service industry and commerce in the industrial scale has been increasing year by year, forming a development pattern where manufacturing and service industries develop side by side. Currently, Shanghai's biopharmaceutical industry faces unprecedented development opportunities. On one hand, the national level attaches great importance to the development of the biopharmaceutical industry and has introduced a series of supportive policies, providing strong guarantee for the development of the industry. On the other hand, with the acceleration of urbanization and increasing international exchanges, China is facing dual challenges from chronic and infectious diseases, which are continuously increasing the demand for biopharmaceutical products. This provides a broad market space and development potential for Shanghai's biopharmaceutical industry.
Policies and Tracks
In the journey of accelerating the development of the biopharmaceutical industry, the Shanghai Municipal Government has carefully laid out a comprehensive, multi-level, and highly coordinated policy support system from a far-sighted strategic perspective. This series of policy measures not only cover top-level planning and strategic guidance but also delve into the implementation and execution of specific action plans, aiming to promote the high-quality development of the biopharmaceutical industry in all aspects and dimensions.
The creation of a policy environment is the cornerstone of accelerating the development of the biopharmaceutical industry. The Shanghai Municipal Government has drawn a clear blueprint for the development of the industry through the release of key planning documents such as the "14th Five-Year Plan for the Development of Shanghai's Biopharmaceutical Industry," clarifying the future development direction and priorities. At the same time, it has also introduced a series of specific policy measures such as the "Several Opinions on Promoting the High-quality Development of Shanghai's Biopharmaceutical Industry" and the "Several Policies on Accelerating the Construction of a Global Biopharmaceutical R&D and Industrialization Highland," ensuring that strategic planning can take root.
Under the guidance of top-level planning and strategy, the Shanghai Municipal Government also focuses on strengthening forward-looking layout, concentrating on key areas and core technologies of the biopharmaceutical industry, and formulating and implementing a series of targeted action plans. For example, the "Action Plan for Promoting Cell Therapy Technological Innovation and Industrial Development in Shanghai (2022-2024)" and the "Action Plan for Accelerating the Innovation of Synthetic Biology and Building a High-end Biomanufacturing Industrial Cluster in Shanghai (2023-2025)," etc. These action plans not only provide strong policy support for the development of cutting-edge areas such as cell therapy and synthetic biology but also promote the optimization and improvement of the industrial ecosystem by promoting the coordinated development of upstream and downstream industries.
In addition, the Shanghai Municipal Government also focuses on breaking through obstacles in industrial development through institutional innovation. For example, the introduction of documents such as the "Regulations on Promoting the Construction of Zhangjiang Biopharmaceutical Innovation Highland in Pudong New Area" provides more flexible and efficient institutional guarantees for the innovation and development of the biopharmaceutical industry. At the same time, it also actively explores innovative measures such as establishing a "white list" system for imported research and development items by biopharmaceutical enterprises (R&D institutions), further improving the convenience and efficiency of industrial development.
In terms of optimizing the industrial ecosystem, the Shanghai Municipal Government also spares no effort. Through measures such as promoting the characteristic development of biopharmaceutical industrial parks, accelerating the construction of biopharmaceutical intelligent manufacturing spaces, and promoting the coordinated development of R&D and manufacturing, it provides a better development environment and service guarantee for biopharmaceutical enterprises. At the same time, it also reduces the operating costs and market risks of enterprises and enhances their innovation vitality and market competitiveness by setting up biopharmaceutical product registration guidance service stations and improving diversified payment mechanisms.
It is worth noting that the Shanghai Municipal Government also attaches great importance to enhancing innovation source capabilities. By targeting cutting-edge areas such as cell and gene therapy, mRNA, and synthetic biology, strengthening basic research and tackling key technologies, it continuously improves the core competitiveness of the industry. At the same time, it makes full use of advanced technologies such as artificial intelligence and deep learning to promote the intelligent development of links such as new drug target discovery, drug discovery and design, and new drug screening, injecting new impetus into the innovative development of the biopharmaceutical industry.
In terms of promoting the application and promotion of innovative products, the Shanghai Municipal Government also spares no effort. Through measures such as continuously updating the "New and Superior Drugs and Medical Devices" product catalog, opening a "green channel" for innovative drugs and medical devices online, and increasing medical insurance payment support, it provides strong guarantee for the market access and application promotion of innovative products. At the same time, it actively supports medical institutions and enterprises to cooperate on innovative drug and medical device application demonstration projects, promoting the clinical application and industrialization process of innovative products.
In terms of strengthening investment and financing support, the Shanghai Municipal Government gives full play to the role of government-guided funds. By setting up biopharmaceutical industry mother funds, equity investment funds, etc., it provides strategic investment support for potential enterprises and high-quality R&D pipelines. At the same time, it also encourages enterprises to carry out activities such as venture capital investment, mergers and acquisitions, and restructuring, diversifying financing channels in various forms, providing solid financial guarantee for the sustainable and healthy development of the biopharmaceutical industry.
Looking ahead, the Shanghai Municipal Government will continue to deepen policy support and service guarantee work for the biopharmaceutical industry with a high sense of responsibility and mission. Through continuous improvement of the policy system, optimization of the industrial ecosystem, enhancement of innovation source capabilities, promotion of the application and promotion of innovative products, and strengthening investment and financing support, it promotes the biopharmaceutical industry to achieve higher quality and more sustainable development. At the same time, it will also actively respond to the challenges and opportunities faced by industrial development, continuously improve the core competitiveness and international influence of the industry, and contribute more to building a globally influential biopharmaceutical industry innovation highland.
