Hangzhou's Biopharma Sector Gains Momentum with $210M in Q1 Investments and New IPO Filing

　　【Pharmaceutical Network Industry Dynamics】Biopharmaceuticals are a national strategic emerging industry, an important field for fostering new quality productive forces, and one of the key sci-tech innovation highlands that Hangzhou aims to build. Currently, Hangzhou has become one of the investment destinations for biopharmaceutical companies both in China and internationally.
 

On May 19, the signing and unveiling ceremony of the cooperation project between Imbioray (Hangzhou) Biomedical Co., Ltd. and Anhui Bairuinuokang Pharmaceutical Technology Co., Ltd. in Fuyang was held. The achievement of this cooperation project marks another significant step for Hangzhou's biomedical industry.
 

Data shows that Imbioray (Hangzhou) was founded in 2014, with its headquarters in Hangzhou, China. It is a biopharmaceutical enterprise focusing on tumor immunotherapy and the treatment of immune-related diseases. Currently, the company has developed more than 10 therapeutic pipelines for both cancer and non-cancer diseases, three of which for cancer treatment have entered the clinical stage. Clinical trial data confirms the excellent safety of the products, with no adverse reactions observed, demonstrating promising clinical efficacy. Anhui Bairuinuokang Pharmaceutical Technology Co., Ltd. is a group-oriented enterprise specializing in cell therapy storage, preparation, R&D, and the field of precision medicine, integrating "production, academia, research, sales, and investment."
 

It is reported that Hangzhou has also attracted the landing of a number of large foreign pharmaceutical companies, such as Pfizer, Merck, Abbott and five other foreign pharmaceutical companies have settled in.
 

To promote the development of the biopharmaceutical industry, Hangzhou has continuously strengthened policy support. As early as May 2018, Hangzhou released opinions on promoting the innovative development of the biopharmaceutical industry, emphasizing the city's support for the application of innovative biopharmaceutical products and financial support for the industry.
 

In October 2023, Hangzhou also released the "Reform Plan for Environmental Impact Assessment of Laboratory-level Production and Related Industries in Hangzhou's Biomedical Industry." This reform plan addresses the difficulty of on-site transformation of laboratory research and development projects during the controlled planning management process, further unleashing existing resources and clarifying the availability of industrial land. It represents a continuous iterative upgrade based on the previous "Planning EIA + Project EIA" reform in industrial parks.
 

Supported by favorable policies, Hangzhou's biopharmaceutical industry is developing rapidly. According to the latest data from the Hangzhou Investment Promotion Bureau, in the first quarter of 2024, Hangzhou introduced seven biopharmaceutical projects with a total investment of 1.5 billion yuan.
 

In addition, in recent years, Hangzhou High-tech Zone (Binjiang) has leveraged its digital industry advantages, deeply integrating the digital industry with the life health industry. It has already formed significant strengths in specialized fields such as diagnostic reagents, biomedicine, medical devices, and smart healthcare. The innovation and R&D capabilities in the pharmaceutical sector continue to strengthen. To date, the district has attracted over 500 key enterprises, with more than 900 medical device registration certificates and 21 innovative medical devices granted special approval.
 

Hangzhou Biotech Valley, located west of the airport in Hangzhou's Lin Kong Economic Demonstration Zone, was listed as one of the "one core, four parks" for Hangzhou's biopharmaceutical industry in 2021. Together with Jiangnan Sci-Tech City, it forms the core area for the development of biopharmaceuticals in Xiaoshan. To date, it has attracted 31 key projects with a total investment of 14.1 billion yuan. It is reported that by 2027, the park will have basically completed an industrial cluster integrating industry, technology, and talent, attracting over 100 biopharmaceutical ecosystem enterprises and research institutions, with the regional industrial scale reaching tens of billions of yuan.
 

Experts in the industry indicate that Hangzhou has taken a leading position in the overall field of medical innovation, including biomedicine, innovative medical devices, pharmaceutical distribution, medical services, and pharmaceutical outsourcing. According to the 2023 annual financial reports disclosed by Hangzhou's listed biopharmaceutical companies, many pharmaceutical enterprises achieved double growth in revenue and profit. For instance, in 2023, Zhejiang Conba Pharmaceutical Co., Ltd. achieved a net profit attributable to shareholders of 592 million yuan, representing a year-on-year increase of 65.19%; Betta Pharmaceuticals Co., Ltd. realized a net profit attributable to shareholders of 348 million yuan, marking a year-on-year increase of 139.33%; and Huadong Medicine Co., Ltd. reported a net profit attributable to shareholders of 2.839 billion yuan, with a year-on-year increase of 13.59%...
 

The new drug R&D of Betta Pharmaceuticals mentioned above is proceeding with "multiple approaches". There are 16 projects at various clinical stages, among which BPI-16350 has entered Phase III clinical trials. BPI-16350 is a novel, proprietary CDK4/6 inhibitor independently developed by Betta Pharmaceuticals. It is intended to be used as a monotherapy or in combination with hormone therapy, mainly for the treatment of patients with HR-positive/HER2-negative advanced or metastatic breast cancer. It can also be used for first-line, second-line, or combination treatments of other Rb+ cancers.
 

Industry insiders said that looking ahead, if Hangzhou wants to make a deep breakthrough in the intense industrial competition, it needs not only to introduce and cultivate outstanding pharmaceutical innovation companies but also to focus on talent development. Moreover, it requires the patience for long-term industrial growth and an open mindset for cooperation and shared prosperity. It is reported that, to attract talent, Hangzhou has established eight talent recruitment points in overseas cities such as Tokyo, Japan, and Paris, France. It has also set up a $30 million overseas biopharmaceutical fund in Boston, USA, and built the Hangzhou Collaborative Innovation Center in Silicon Valley. As the new round of Hangzhou's biopharmaceutical industry planning gradually unfolds, Hangzhou is expected to foster more leading enterprises in the biopharmaceutical and health industries.
 

Disclaimer: In any case, the information or opinions expressed in this article do not constitute investment advice for anyone.