With 21.5 billion yuan, Shanghai has begun to unleash big moves in the medical market!
Recently, Shanghai intends to set up a total size of 89 billion yuan of three industrial pioneer mother fund. And this is the latest big contribution from a major domestic city following Beijing’s release of a new batch of industrial investment funds with a total size of 50 billion yuan. Among them, 21.5 billion yuan will be invested in the field of biomedicine – innovative drugs and high-end preparations, high-end medical devices, biotechnology, high-end pharmaceutical equipment and other fields.
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Focusing on three leading industries: integrated circuits, biomedicine and artificial intelligence
The three pilot funds are: the 22.5 billion yuan Artificial Intelligence Mother Fund (tentative name), investing in intelligent chips, intelligent software, automatic driving, intelligent robots and other fields; the 21.5 billion yuan Biomedical Mother Fund (tentative name), investing in innovative drugs and high-end preparations, high-end medical devices, biotechnology, high-end pharmaceutical equipment and other fields; and the 45 billion yuan Integrated Circuit Mother Fund (tentative name). (tentative name).
Among them, Shanghai Guojing plans to invest a total of 40 billion yuan, ranking first; Shanghai Pudong plans to invest 13.75 billion yuan; Guota iJunan and Haitong Securities each plan to contribute 1 billion yuan.
In March of this year, the 2024 Shanghai Global Investment Promotion Conference released the “Invest in Shanghai” policy package, proposing to focus on industrial funds and establish a total scale of 100 billion yuan industrial investment mother fund around the three leading industries of integrated circuits, biomedicine, and artificial intelligence.
Relevant data show that the amplification effect of the government-guided mother fund on social capital can reach 4.5 times, that is to say, through the 100 billion yuan scale of the mother fund, the future of Shanghai may lead to more than 400 billion yuan of funds invested in the above three industries. The tax revenue, the amount of industrial capital landed, and the total amount of GDP that it can bring to the regional government are all very considerable.
Not only Shanghai, but all over the country are increasing investment in biomedical health.
On 20 June, four funds were registered in Beijing, with a total scale of 50 billion yuan: the Beijing Municipal Pharmaceutical and Health Industry Investment Fund (20 billion yuan), the Beijing Robotics Industry Development Investment Fund (10 billion yuan), the Beijing Information Industry Development Investment Fund (10 billion yuan), and the Beijing Artificial Intelligence Industry Investment Fund (10 billion yuan), with a total contribution of 50 billion yuan.
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21.5bn biomedical fund, who will benefit?
Biopharmaceuticals are one of the three key leading industries for Shanghai’s development, and accelerating the construction of a globally influential innovation highland for the biopharmaceutical industry is an important part of Shanghai’s construction of an international science and technology innovation center. The latest data shows that in 2023, the scale of Shanghai’s biopharmaceutical industry reached 933.732 billion yuan, an increase of 4.9%. Over the past five years, Shanghai has accounted for more than one-third of the new drug overseas authorization projects with a transaction amount of over 500 million US dollars nationwide. Currently, the only two foreign-funded enterprises in China that have prioritized global drug listings are from Shanghai.
According to the comprehensive ranking of the regional heat value evaluation index for strategic emerging industries in the biopharmaceutical industry, there are six districts and counties in Shanghai that have entered the top 100, namely Pudong New Area (1st), Fengxian District (16th), Minhang District (29th), Jinshan District (36th), Jiading District (40th), and Songjiang District (69th).
Industry insiders have stated that in recent years, Shanghai has vigorously developed emerging industries such as integrated circuits, biomedicine, and artificial intelligence, which is an important background for the establishment of the relevant parent fund. As early as the 2024 Shanghai Global Investment Promotion Conference in March this year, Shanghai focused on industrial funds, focusing on the three leading industries of integrated circuits, biomedicine, and artificial intelligence. The Municipal State owned Assets Supervision and Administration Commission promoted the establishment of a total scale of 100 billion yuan industrial investment mother fund, giving full play to the functions of “early investment and small investment”, industrial investment, merger and acquisition integration, and strengthening the chain, and enhancing the overall level and development level of Shanghai’s three leading industries.
So who will benefit from Shanghai’s massive investment of 21.5 billion yuan in the biopharmaceutical industry?
It is learnt that the Shanghai Municipal Government hopes to support the innovative development of biomedical pilot industries through these funds, and enhance the overall capacity and international competitiveness of the industry.
Implementing the “early investment and small investment” strategy:
Through early-stage investment and support for start-ups, it promotes the replenishment and strengthening of the industrial chain and ensures that the key links of the industry are not monopolised by foreign countries.
Promoting M & A integration:
Through mergers and acquisitions, optimizing resource allocation, increasing industry concentration, and enhancing the core competitiveness of Shanghai biopharmaceutical enterprises.
Attracting more key investment projects:
Shanghai plans to create smart manufacturing spaces and attract more high-quality investment projects through these funds, further improving the city’s industrial structure.
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In Shanghai, there are over a thousand medical equipment manufacturing enterprises
In the policy, it is mentioned to strengthen the development and innovation of high-end medical devices and other industries. Companies listed in the medical device field in Shanghai are represented by Shanghai United-Imaging Medical, as well as leading companies in the industry such as Aohua Endoscopy, Sinopharm Shanghai Medical Equipment Co., Ltd., Shanghai Sanyou Medical Co., Ltd., Shanghai Kindergarten Enterprise Development Group Co., Ltd., and Shanghai Ketamaidi Medical Equipment Co., Ltd.
According to the data in 2022, the number of medical device manufacturers in Shanghai was 1,214, accounting for 4.4% of the national total.From 2019 to 2023, the number of medical device product registrations filed in Shanghai is generally on a downward trend, with a total annual growth rate of approximately -2.5%.
Shanghai has shown outstanding performance in medical device innovation, with over 40 innovative medical devices approved for market. The total number of approved innovative medical devices accounts for 16.7% of the national total, ranking second in the country in terms of quantity.
This year, the Shanghai Municipal Government has introduced a series of policies and measures to encourage innovative development in the medical device industry, including incentives for innovation, accelerated device approval, and fiscal and tax incentives. As one of the most economically active cities in the Yangtze River Delta region, Shanghai will continue to play a leading role under favorable support, driving technological cooperation and innovation integration in the Yangtze River Delta region
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Source：MedWorld
Translated & edited： Bradyknow
