A new path to a healthier city

The Jinshan district government is building a biomedical and pharmaceutical manufacturing base to foster the innovation needed to compete in one of the world's fastest-growing industries.

The Jinshan Biomedical and Pharmaceutical Industry Base is being promoted by the Shanghai Jinshan Industrial Zone as its leading industry. The base was established in 2003 and focuses on the manufacture of new drugs, pharmaceutical preparation, the bulk drug industry, medical devices, medical packaging materials and pharmaceutical logistics. The Jinshan base is accredited by the National Development and Reformation Committee as a National Biopharmaceutical Industry Base.

"With rising life expectancy and an aging population, China has seen greater demand on its medical system," said Yan Jie, president of the Shanghai New Jinshan Investment Development Company.

"The additional demand for medical care and ancillary industries boosts the development of the pharmaceutical and biotechnology sectors in the country. Shanghai has targeted it as a key development industry over the next few years," he said. "We want to take these new opportunities and create a top-level biomedical and pharmaceutical manufacturing base in Shanghai."

According to The Action Plan on Biomedical Industry Development by the Shanghai government this year, the city aims to develop a manufacturing industry for biomedical products, while placing an emphasis on finding breakthroughs in related technologies.

In light of the indications that China will need increase its new drug production by up to 20 percent by 2014, the Jinshan Biomedical and Pharmaceutical Industry Base is building a major drug manufacturing base in Shanghai.

So far, three national highest-level new drugs, developed by Shanghai Genomics, Henlius Biopharmaceuticals and Meggle China, have been brought on stream at the Jinshan base.

Shanghai Pharma Group and Fosunpharma Group are also planning to establish a comprehensive system that integrates new drug research, development and manufacturing at the Jinshan base.

Earlier this year, the central government announced that it would invest about 850 billion yuan into the new round of its Medicare Reform Plan, a way to improve health care in the country through to 2011. The reform plan promises to provide health care for more than 90 percent of the country's population over the next three years. Meanwhile, it will establish a basic medical service system by significantly improving medical care facilities and expanding health-related infrastructure, especially in rural areas. More community health centers and clinics, as well as new county and village clinics will be developed.

"The Jinshan base has great potential in the medical devices industry. As the biomedical and pharmaceutical sector becomes much larger, the market for medical devices and packaging materials will rise rapidly," Yan said.

Under the new Medicare Reform Plan, the country will increase spending on the construction of basic medical facilities in communities and rural areas. Insiders expect that by 2014, the total value of medical-device market in China will reach $28 billion, more than twice the 2006 figure.

Seizing the opportunity, Jinshan Biomedical and Pharmaceutical Industry Base is speeding up the construction of the medical-devices industry and medical packaging materials manufacturing.

"In the past, high growth was seen in the sector because there was an increasing portion of the population who could afford high-quality medical equipment or home-use health-care facilities, especially under the government's growing emphasis on health coverage in rural areas," Yan said.

"The medical-devices industry is a knowledge-intensive, highly value added, and a competitive hi-tech industry. So we are looking ways to co-operate with more health-care equipment companies," he said.

Yan said talks were underway with GE, Siemens and Philips. Shanghai Kindly Enterprises Development Group, which specializes in producing and distributing disposable medical devices, is planning to establish a medical equipment manufacturing base at the Jinshan Industrial Zone.

The Jinshan Biomedical and Pharmaceutical Industry Base has also taken an innovative step to build a modern pharmaceutical logistics center, which integrates information, transportation, storage, delivery and other service facilities. So far, eight pharmaceutical distributing enterprises have been established at the base.

The Shanghai municipal government has been offering Jinshan Industrial Zone extensive support. In July and August, the city government and Jinshan district government announced regulations and policies to encourage sustainable development of the biopharmaceutical industry. Since then, every biopharmaceutical company listed in the industry development catalogue and which sets up their base in Jinshan is given a municipal fund of up to 10 percent of the investment, as well as another 10 percent from a district fund. At the same time, such enterprises will be given financial aid, tax breaks, technical help and human resources support.

"That means if a company invested 20 million yuan in biomedical and pharmaceutical industries in the Jinshan Industrial Zone, they will receive at most 2 million yuan in financial aid," said Ni Xiangjun, the director of Jinshan Industrial Zone Management Committee.

"The opportunities in the biomedical and pharmaceutical industry in the country are enormous," Ni said. "Under the new round of health-care reform, we are committed to innovation, numerous preferential policies, and tax and financial incentives so as to promote the industry's development in China.

"We are also implementing a series of recruitment and training policies to increase manpower capital in the industry," she said.

Xiao Hong

(China Daily 12/19/2009 page14)