Changping Healthcare Innovative Financial Investment Forum 2024 Successfully Concludes with Theme 'Industry-Finance Synergy, Quality-Driven Innovation'

To promote the robust development of China’s pharmaceutical and health industry and reinforce Changping District’s position as an innovation hub in this sector, the 2024 Changping Healthcare Innovative Financial Investment Forum (CHIF) was successfully held in Changping on November 22, 2024. The forum was hosted by the People’s Government of Changping District, Beijing State-owned Capital Operation and Management Co., Ltd., and co-organized by the Administrative Committee of Future Science City (Life Science Park Administrative Committee), the Administrative Committee of Zhongguancun Science Park Changping Park, the Development and Reform Commission of Changping District, Beijing Changping Science Park Development Group Co., Ltd., Beijing Changke Jin Investment Co., Ltd., and Chongqing Dongmaicheng Technology Co., Ltd. (VCBeat VB100).

Themed “Synergizing Industry and Finance to Shape a Quality-Driven Future,” the forum was attended by nearly 30 invited representatives from government departments, regulatory bodies, academia, industry, healthcare, and investment sectors. Distinguished attendees included Guo Chuan, Deputy Secretary of the Party Committee, Director, and General Manager of Beijing State-owned Capital Operation and Management Co., Ltd.; Gong Weimi, Member of the Party Leadership Group and Deputy Director of the Beijing Municipal Science & Technology Commission and Zhongguancun Administrative Committee; Liu Xiaodong, Member of the Standing Committee of the Changping District Committee of the Communist Party of China and Executive Deputy District Mayor; Ma Dawei, Academician of the Chinese Academy of Sciences and Researcher at the Shanghai Institute of Organic Chemistry, Chinese Academy of Sciences; Jin Chunlin, Director of the Shanghai Health Development Research Center; and He Juying, Chief Healthcare Industry Analyst at China Securities Co., Ltd. Together, they crafted a brilliant gathering to inspire future-oriented wisdom, spark dynamic interactions between innovative thinking and financial capital, and guide the industry toward a new journey of high-quality development.

Guo Chuan attended the forum and delivered a speech. He pointed out, “Beijing State-owned Capital Operation Management Co., Ltd. is actively responding to national policies by optimizing capital allocation and promoting industrial upgrading and transformation to support the development of the pharmaceutical and healthcare industry. In collaboration with the Changping District Government, we are leveraging its industrial advantages to focus on key areas such as life sciences and pharmaceuticals, medical devices, and health services, thereby building industrial clusters with core competitiveness. In March 2024, the Beijing Pharmaceutical and Healthcare Industry Investment Fund, with a scale of RMB 20 billion, was established in Changping, focusing on key sectors including innovative drugs and innovative medical devices, injecting financial vitality into the development of the pharmaceutical and healthcare industry.”

Gong Weimi stated in his address: “Beijing has consecutively implemented three rounds of the Action Plan for Collaborative Innovation in Medicine and Health, placing greater emphasis on strengthening the synergy between innovation and the coordinated development of medical care, health insurance, and pharmaceuticals (the ‘Three Medicals’). The city is focused on expanding the foundational sector of pharmaceuticals and medical devices, actively laying out emerging tracks, and continuously optimizing the industrial innovation ecosystem. First, we will strengthen policy support by issuing specialized policies in fields such as synthetic biology manufacturing and medical devices, optimizing full-process services for innovative drugs and medical devices, and enhancing regulatory science research. Second, we will promote clustered industrial development. In the north, relying on Haidian and Changping districts, we will strengthen frontier innovation translation services and the construction of professional incubators. In the south, leveraging the Beijing Economic-Technological Development Area and Daxing District, we will enhance spatial guarantees for high-end manufacturing and plan the construction of Bio-Park. Third, we will advance the ‘amplifier’ effect of capital. By relying on municipal-level medicine and health industry funds, we will drive social capital investment and strengthen support at both ends: early-stage R&D and industrialization implementation.”

In his address, Liu Xiaodong stated, “Changping District regards sci-tech finance as a crucial safeguard for its modern industrial system. In collaboration with the Municipal Financial Regulatory Bureau and four other departments, we have introduced sci-tech finance policies, pioneered the establishment of a government-guided investment fund management system across Beijing, and developed a comprehensive management mechanism covering the entire process from project selection to post-investment management. These efforts have facilitated the successful establishment of the Changping Service Base of the Beijing Stock Exchange. Leveraging Changfa Zhan Company as the primary platform, the Changping Technology Industry Fund-of-Funds cluster has partnered with 24 high-quality pharmaceutical investment funds, reaching a total fund size of RMB 16.4 billion, with a strategic focus on innovative drugs, precision medicine, and related fields. To date, over 330 projects in the pharmaceutical and healthcare sectors have received investment, and more than 30 projects in the broader health industry have successfully gone public, injecting a steady stream of financial vitality into the rapid development of the industry.”

In September 2024, the Beijing Municipal Government officially released the Plan for Innovative Development of Synthetic Biology. This initiative not only enhances the biotechnology industry chain but also provides effective guidance for the development of related industries, serving as a crucial engine for urban development. Ma Dawei, an academician of the Chinese Academy of Sciences and a researcher at the Shanghai Institute of Organic Chemistry, Chinese Academy of Sciences, delivered a keynote speech titled “Discovery and Preparation of Small-Molecule Drugs: Trends in Innovative Drugs and Synthetic Biology.” He pointed out that drug development must meet high standards of safety, efficacy, controllability, and accessibility, with small-molecule drugs remaining the mainstay of the industry. He emphasized that new drug development must compete with existing therapies, requiring greater safety and efficacy to ensure market viability. The key consideration in the competition among different drug manufacturing technologies is cost. Overheated investment in the capital markets in previous years led to extensive redundant R&D and resource waste, although it did help cultivate a cohort of R&D teams. Amid the current capital winter, investors should maintain confidence and extend greater patience to grounded entrepreneurs. Beyond follow-on targeted drug research, pursuing new drug discovery through phenotypic screening and collaborating with scientific research enterprises to develop drugs targeting innovative mechanisms may provide opportunities for pharmaceutical innovation. In terms of drug manufacturing, synthetic biology holds the potential to reduce costs, but chemical synthesis continues to dominate drug discovery and production. Looking ahead, improving synthetic efficiency and integrating chemical and biosynthetic methods will be the primary directions for the advancement of drug manufacturing processes.

The competitiveness of the healthcare industry and market vitality should be built upon the medical value delivered to patients and the quality of health outcomes. As a novel healthcare concept, value-based healthcare is gradually becoming a significant force driving the reform of the healthcare system. Jin Chunlin, Director of the Shanghai Health Development Research Center, stated in his thematic presentation titled “Exploring Value-Based Healthcare and the Development of New Quality Productive Forces in Health”: “In the face of slowing economic growth and the challenges of an aging population, China’s healthcare system needs to shift towards pursuing cost-effective, value-based healthcare, with a focus on healthcare quality and health outcomes.” He advocated for public hospitals to transition from scale expansion to a quality-and-efficiency-oriented model, thereby improving service efficiency and the compensation of medical personnel. The payment system should shift from volume-driven to value-driven to promote high-quality development. Meanwhile, China should fully leverage the market potential of innovative drugs and promote their development through comprehensive support across the entire value chain, achieving the transformation into a major power in innovative pharmaceuticals. He also emphasized that scientifically balancing drug prices with value, along with precise pricing and health insurance reimbursement mechanisms, is crucial for healthcare reform and industrial development.

Concurrently with the forum, attending leaders and guests jointly witnessed two highlight moments for Changping District in the field of the pharmaceutical and health industry: the certificate awarding ceremony for Industrial Investment Promotion Advisors of Beijing Future Science City, and the signing ceremony for cooperation on the Life Valley Pharmaceutical and Health Industry Investment Fund. This also showcases the fruitful results of Changping District’s efforts in recent years to establish a hundred-billion-yuan industrial cluster. As a key carrier area for Beijing’s construction of an international science and technology innovation center, Changping has consistently prioritized the pharmaceutical and health industry as its advantageous leading sector, continuously introducing industrial support policies.

As the core platform of Beijing’s International Science and Technology Innovation Center, Future Science City has established an innovative development framework known as the “Two Valleys and One Park,” comprising “Life Valley,” “Energy Valley,” and the Shahe Higher Education Park. It is dedicated to cultivating three hundred-billion-yuan industrial clusters in pharmaceuticals and healthcare, advanced energy, and advanced manufacturing. To accelerate the development of Future Science City, Changping District has specially appointed twelve experts from fields such as medical healthcare and financial investment as Industrial Investment Promotion Advisors for Beijing Future Science City, issuing them official certificates. Leveraging their professional insights and extensive resources, these advisors will inject new vitality into Changping District’s pharmaceutical and healthcare industry, facilitating industrial upgrading and high-quality regional economic development.

In 2023, Changfa Group launched the Life Valley Pharmaceutical and Health Industry Investment Fund, which focuses on direct investments and sub-funds in innovative biopharmaceuticals, high-end medical devices, pharmaceutical and device supply chains, and beauty and health. Since its establishment, the fund has continuously expanded its scope of cooperation, partnering with benchmark fund companies such as Shenwan Hongyuan, Legend Capital, Shuimu Ventures, and Chende Capital, which have forward-looking layouts in synthetic biology, innovative drugs, cutting-edge biotechnology, and medical devices. By leveraging the guiding role of capital, the fund provides momentum for the development of new quality productive forces. It will continue to harness the leveraging effect of government guidance funds and industrial investment funds, strengthen market-oriented cooperation, and upgrade the fund investment ecosystem into a full-cycle, sustainable, and positive loop. Adhering to the philosophy of “Accompanying Growth, Co-creating the Future,” the fund is committed to helping enterprises achieve steady progress.

In this era of rapid iteration in healthcare, every minor policy adjustment can trigger profound industry transformations. Technological leaps are driving industrial upgrades, while fluctuations in the capital market are injecting new vitality and challenges into the sector. He Juying, Chief Analyst of the Healthcare Industry at China Securities Co., Ltd., delivered a presentation titled “Policy, Industry, and Capital Markets: A Perspective on Changes and Opportunities in the 2024 Healthcare Industry.” She stated that “healthcare demands and technological innovations are bringing new opportunities to the industry, and confidence should be maintained.” She emphasized that the capital market has a deep understanding of industry policies, particularly regarding reforms in medical service pricing and payment methods. Public hospitals will shift from scale-based expansion to factor-based expansion, placing greater emphasis on specialty development and the translation of scientific research achievements. The industry has demonstrated strong resilience, with Chinese enterprises playing an increasingly important role on the international stage. He Juying expressed her expectation that deeper engagement with the industry and promotion of interactive exchanges will facilitate better industry development.

Chinese pharmaceutical and medical device companies are stepping up their global expansion with greater determination. Leading enterprises have expanded into overseas markets, setting benchmarks for “Made in China” and achieving remarkable success. Many mid-sized and start-up companies are following closely, embarking on their own journeys of global outreach with noteworthy progress. During the innovation dialogue session, Peng Huanhuan, Vice President and General Manager of the China Marketing Center at MGI Tech; Wu Xiaobin, President and Chief Operating Officer of BeiGene; and Wang Junfeng, Co-Chief Investment Officer and Managing Director at Legend Capital, initiated a discussion themed “Leveraging Opportunities and Navigating Trends to ‘Build Ships and Go Global’ Amidst International Cooperation.” The panelists deeply explored how stakeholders view new opportunities and potential risks in international collaboration within the healthcare industry against the backdrop of accelerating global integration and transformation. They also discussed in depth how companies can position themselves in this environment to achieve sustainable development and enhance their global influence.

As the global healthcare industry flourishes, source innovation in medical technology has become a pivotal force driving sector-wide transformation. How to seize the opportunities presented by source innovation and identify pathways to break through current bottlenecks has emerged as an urgent topic for discussion. Moderated by Ma Rui, Partner at FreeS Fund, the dialogue featured Chen Zhiguo, Founder and CSO of Huixin Medical Valley; Jiao Shiping, Founder, Chairman, and CEO of Keshihua Biology; Lai Lipeng, Co-founder and Chief Innovation Officer of XtalPi; Wang Jingjing, Executive Director of the Global Health Industry Innovation Center at Tsinghua Industrial R&D Institute; Wang Yunhai, Managing Partner at Xianfeng Qiyun; Wu Yong, Managing Partner at ShuiMu Ventures; and Zhang Jinju, Founder and CEO of Guoke Rongzhi Biology. Under the theme “Tracing the Origins of New Quality Productive Forces: Source Innovation in Medical Technology and Pathways to Breakthroughs,” the panelists offered their unique insights, focusing on two key topics: why source innovation in medical technology is particularly crucial and how it brings profound impact and transformation to the entire industry, and how new quality productive forces, which are currently a major focus of the industry against the backdrop of rapid global development in medical technology, will lead the next wave of medical revolution. In conclusion, the guests agreed that innovative projects in biotechnology and early-stage medical fields hold significant importance in meeting clinical needs and should continue to receive attention and investment.

Expanding and innovating the health industry’s value chain means continuously extending and broadening the existing industrial chain to create a more complete and efficient industrial ecosystem. Strengthening foundational capabilities serves as the cornerstone for the sustainable development of the health industry. How to unleash new-quality productive forces and promote both value-chain expansion/innovation and foundational strengthening in the health sector has become a critical issue before us.Moderated by Ren Peng, Chairman and General Manager of Beijing Shunxi Private Equity Fund Management Co., Ltd., the panel discussion themed “Unleashing New-Quality Productive Forces: Value-Chain Expansion and Innovation in the Health Industry along with Strategies for Strengthening Its Foundations” featured the following speakers: Wang Ying, General Manager of Changfa Development Group; Wang Yue, Vice President of AstraZeneca’s Global R&D China Center and Head of the Digital Health Innovation Department; Wang Jinghua, Managing Partner of Medtronic China Healthcare Fund; Wu Aimin, President of Jianyi Capital; Xu Jianfeng, Chief Scientific Officer and Co-founder of Shanghai Chengyi Biotechnology Co., Ltd.; Yu Zhihua, Founding Partner of Longpan Investment; and Zhang Yang, Founder, Chairman, and General Manager of Sanbo Brain Hospital Management Group. The participants engaged in a comprehensive dialogue on two key topics: first, identifying which innovation models are most likely to become key drivers for unleashing new-quality productive forces and promoting deep integration and expansion across upstream and downstream segments of the industrial chain amid rapid global changes in the health industry; and second, exploring how companies can build effective innovation ecosystems to optimize, upgrade, and expand their value chains in response to growing market demand and diversification trends in the health industry.

In recent years, with the booming development of China’s innovative drug industry, an increasing number of Chinese pharmaceutical companies have begun to pursue internationalization. As an emerging model for global expansion, the “NewCo” model is gradually attracting widespread attention from the industry. However, opportunities always coexist with challenges. While the NewCo model offers numerous advantages, it also faces multiple challenges, including project-driven risks, demanding requirements for team capabilities, and policy-related risks.Kuang Yao, Managing Director at GTJA Capital; Liu Tingting, Senior Lawyer at AllBright Law Offices; Meng Qingwu, Founder of Exceptis Pharma; Shan Bei, Founder and CEO of Baifang Yingku; Wu You, Managing Director and Head of China Healthcare at BDA Partners; Xiong Jian, Partner at Niukou Capital; and Li Rui, Partner at Niukou Capital, jointly engaged in a discussion titled “Going Global with Innovative Drugs: Opportunities and Challenges of the NewCo Model.” They explored the fervor surrounding the NewCo model and its underlying drivers, debated whether the model represents a short-term market phenomenon or signals a medium- to long-term trend, and discussed how enterprises across various segments of the ecosystem should formulate strategies to seize this window of opportunity, thereby collectively charting the future path for the global expansion of China’s innovative pharmaceuticals.

Changping District has made solid strides in building a highland for innovation in the pharmaceutical and health industries. Through the joint efforts of government, industry, academia, research institutions, healthcare providers, and investors, Changping District will continue to leverage its agglomeration advantages in the pharmaceutical and health sectors, drive the optimization and upgrading of the industrial chain, and contribute greater expertise and strength to the development of these industries in Beijing and across China. Moving forward, the district will further optimize the innovation ecosystem, strengthen financial support, and promote higher-quality development of the pharmaceutical and health industries. It also looks forward to collaborating with more outstanding domestic and international enterprises and institutions to jointly explore new opportunities in the pharmaceutical and health sectors and co-create a promising future for the health industry.