Shanghai unveils new measures to bolster biopharma sector

Shanghai hopes to keep up the strong momentum in the biopharmaceutical industry by unveiling the latest supportive measures covering the whole value chain on Tuesday.

The joint incentives were released by a number of government bodies, including the city's Development and Reform Commission, Science and Technology Commission, and Finance Bureau, to foster early-stage clinical research and speed up the commercial launch of new medicines.

For biomedicine companies registered in Shanghai, incentives will be offered for those carrying out clinical trials, with up to 30 million yuan (US$4.14 million) in subsidies.

For innovative medical devices included in the priority review channel, a 3-million yuan subsidy will also be provided.

Shanghai will also give full play to government-backed investment and offer key support in strengthening the strategic relief investment for potential enterprises and high-quality research and development pipelines.

In 2023, the city's biomedical industry size jumped 22.6 percent from 2021 to 933.7 billion yuan, and the manufacturing output value reached 186 billion yuan, up 8 percent from that of 2021.

In the first half this year, manufacturing output added 4 percent from a year ago to 93.5 billion yuan.

Shanghai Vice Mayor Liu Duo said at a press briefing on Tuesday that multinationals have been playing a significant role in the city's biomedicine industry.

As many as 90 percent of the top 20 international pharmaceutical and medical device companies have already set up their China regional headquarters or R&D and production headquarters in Shanghai, she noted.

Trial programs will also be put in place for select qualified foreign-funded enterprises in the China (Shanghai) Pilot Free Trade Zone (including Lingang New Area) to carry out the development and application of gene diagnostic and therapeutic technologies.

Local innovative pharmaceutical or medical devices companies will also receive no more than 30 percent of the R&D expense of up to 10 million yuan for new products that have gained approval from the United States Food and Drug Administration, the European Medicines Agency, and the Japanese Pharmaceuticals and Medical Devices Agency or other medical regulatory agencies from BRICS countries and Belt and Road Initiative partner countries.

Last week, Shanghai launched three state-backed funds to invest in the city's three frontier industries: artificial intelligence, biomedicine, and integrated circuits.

Shanghai's state-owned Capital Investment Co's Biomedicine Private Capital Investment Fund was set up with a total size of 21.5 billion yuan to focus on areas including innovative drugs, high-end test materials, high-end medical devices, biotechnology, and high-end equipment.