Shining exemplar is a world center for biomedical excellence

The Shanghai Zhangjiang National Innovation Demonstration Zone is widely seen as an exemplar for building a science and innovation center with global influence.

As such, it has taken responsibility for building world-class science and technology parks, and accelerating a number of major science and tech infrastructure projects.

Many research institutes and regional innovation networks in the Yangtze River Delta have been concentrated in the zone.

That's where a mature industrial chain has been built - especially in the fields of biomedicine and in the pharmaceutical sectors.

In recent years, Zhangjiang has maintained its leading position in the country with the biomedical industry thanks to its research facilities, development strengths and efficient output.

The biomedical industry is a technology and knowledge-intensive sector which involves high inputs, high risk, potentially high profit and long-cycles of financial returns.

Industry insiders say the development of the biopharmaceutical industry requires cooperation and an open environment.

Globally, most international biopharma industries develop in geographical clusters. Biotechnology parks have proved to be major nubs for the development of the biopharmaceutical industry.

They can not only promote innovative cooperation among universities, research institutes, companies and governments, but also accelerate the conversion of life sciences and medical technologies from academic research into commercial applications.

Research

Biotechnology parks also promote the development of new medicines and treatment methods.

The zone has been a core area in the development of the bioengineering and pharmaceutical industry in eastern China, and it has seen great achievements.

According to statistics, last year total sales of Shanghai's pharmaceutical industry accounted for 3.4 percent of the national total, and total profits accounted for 4.7 percent, both increasing 0.5 percent from the previous year.

In addition, the value of industrial output of Zhangjiang zone's biomedical industry accounted for 69.6 percent of the industry's total value in Shanghai, an increase of 3.6 percentage points on 2015.

The main operating income of the biomedical industry in the zone accounted for 70.6 percent of that of Shanghai last year.

In 2016, Zhangjiang demonstration zone was home to 202 biological medicine industrial companies, an increase of 35 compared with 2015.

Among them, the individual operation revenue of 16 groups was more than 1 billion yuan ($151.4 million), four groups more than the number of the previous year.

The operation revenues of 113 enterprises were more than 100 million yuan, up 15 compared with 2015.

The number of pharmaceutical manufacturing enterprises was 126 in 2016 in Zhangjiang, of which 11 had operating revenue more than 1 billion yuan.

In addition, the number of medical device manufacturing enterprises was 45, of which two had operating revenue of more than 1 billion yuan.

The statistics also showed that 18 listed companies in the demonstration zone were focusing on biopharmaceutical research, manufacturing and sales in 2016.

Their revenue totaled more than 126.2 billion yuan, increasing 14.3 percent compared with that in 2015. However, total profits were 10.79 billion yuan, down 9.7 percent year-on-year.

The 18 businesses invested 2.41 billion yuan in research and development, up 19.9 percent year-on-year.

Pharmaceutical drugs, traditional Chinese medicines, biopharmaceuticals and medical device manufacturing were the four biggest segments in the zone.

In terms of total industrial output value, drugs occupied the largest market share, accounting for more than 40 percent of the total market share of the biopharmaceutical industry in the Zhangjiang demonstration zone.

Pharmaceutical or chemically synthesized drugs - as opposed to biopharmaceutical drugs extracted from, or semi-synthesized from living biological sources - accounted for the biggest share of the drug market.

The cost of pharmaceutical drugs is continuously rising, and operating revenue increased last year but there was a slight decrease in total profit.

In addition, revenues for the biopharmaceutical segments reached 10 billion yuan in 2016, but profits are slightly lower compared with the previous year.

The industrial output value and profits from medical devices maintained steady growth last year.

The devices are employed in such fields as medical diagnosis, monitoring and treatment equipment manufacturing, equipment and apparatus for stomatological manufacturing, the manufacture of medical, surgical and veterinary instruments, artificial limbs, artificial organs and devices for implants and intervention.

Total revenue from medical devices last year reached 11.56 billion yuan, an increase of 23 percent year-on-year. Profits in the same period reached 2.08 billion yuan, an increase from 690 million yuan in 2015.

Profits from dental equipment, surgical equipment and prosthetics manufacturing saw the largest growth.

In terms of the number of enterprises, last year there were 49 chemical drug manufacturers, 18 Chinese medicine manufacturers, 39 biodrug manufacturers and 45 medical device manufacturers in the Zhangjiang demonstration zone.

The strength of R&D of the biopharmaceutical innovation companies in Zhangjiang demonstration zone has clearly put it in a leading position in the sector in China.

The China Food and Drug Administration has approved more than 46 types of Class 1 new drugs since 2011 in more than 30 categories. Among them, 12 types of new drugs in five categories were researched by companies in Zhangjiang.

In the first quarter of this year, more than half of the clinical new drugs approved nationally by the Center for Drug Evaluation came from Zhangjiang.

Statistics showed that the registration rate of new drugs by Zhangjiang companies is more than three times that of the national average level.

(China Daily 12/06/2017 page14)