Shanghai Biomedical Fund Seizes Global Innovation Opportunities to Strengthen Medical Investment Competitiveness

(Shanghai, March 27, 2023) The Shanghai Biomedical Fund, Hong Kong Science Park, and Shanghai Pharmaceuticals jointly hosted the “Shanghai-Hong Kong Biotech Innovation and Technology Transfer Symposium” in Shanghai today. The event brought together representatives from the biomedical ecosystem in both Shanghai and Hong Kong, including industrial groups, science parks, research institutions, universities, hospitals, and portfolio companies, to explore ways to advance biotech innovation, technology transfer, and mutually beneficial cooperation between the two cities. Attendees included Zhou Jun, President of Shanghai Industrial Holdings (SIH), Chairman of Shanghai Pharmaceuticals Group, and Chairman of SIH Capital; Zuo Min, Executive Director and President of Shanghai Pharmaceuticals, as well as Chairman and General Manager of the Shanghai Biomedical Frontier Industry Innovation Center; Liu Dawei, President of the Shanghai Biomedical Fund; and Wong Hak-keung, Chief Executive Officer of Hong Kong Science Park Company.

Zhou Jun (second from left), President of Shanghai Industrial Holdings (Group) Co., Ltd., Chairman of Shanghai Pharmaceuticals Holding Co., Ltd., and Chairman of SIIC Capital; Liu Dawei (first from right), President of the Shanghai Biomedical Fund; and Wong Hak-keung (first from left), Chief Executive Officer of Hong Kong Science and Technology Parks Corporation, joined representatives from the Shanghai-Hong Kong ecosystem spanning government, industry, academia, research, healthcare, capital, science parks, and scientists to discuss collaborative efforts in advancing bio-innovation and technological development between Shanghai and Hong Kong.

The Shanghai Biopharmaceutical Fund is a global-facing innovative investment platform in the biopharmaceutical sector, leveraging the strengths of Shanghai Industrial Holdings (SIH) and Shanghai Pharmaceuticals. This event aims to build upon the discussions held during its “Ecosystem Enterprises Internationalization Strategy Seminar” in early March. By capitalizing on its ecosystem advantages covering the entire industry chain, the Fund seeks to explore and practically promote the development of cutting-edge technologies, innovative products, and service models that possess genuine global competitiveness and benefit patients. Simultaneously, it aims to foster frequent collaboration between Shanghai’s efforts to build a globally influential “Science and Technology Innovation Center” and Hong Kong’s initiative to establish an “International Innovation and Technology Hub.”

Shanghai’s 14th Five-Year Plan explicitly states that the construction of Shanghai as a science and technology innovation center will focus on “strengthening the function of originating scientific and technological innovations and enhancing the city’s core competitiveness,” proposing to accelerate original breakthroughs in basic research and boost capabilities in original innovation. Among the three key areas for enhancing the competitiveness of critical core technologies is biomedicine; Shanghai aims to tackle key core technologies, create new momentum for high-quality industrial development, and provide support for the cultivation and expansion of future industries. Meanwhile, Hong Kong is also vigorously advancing its efforts to build an “International Innovation and Technology Center.” On March 15, the HKSAR Government and the Ministry of Science and Technology signed the Arrangement between the Mainland and Hong Kong on Accelerating the Development of Hong Kong as an International Innovation and Technology Center, aiming to facilitate deeper scientific and technological cooperation, achievement transformation, and leverage Hong Kong’s international advantages. The Hong Kong government will also fully utilize its strengths in basic scientific research, talent development, and the growth of the sci-tech innovation industry, adopting multiple measures to actively establish Hong Kong as a global hub for scientific and technological innovation. These measures include launching the HK$10 billion “Industry-Academia-Research 1+ Scheme” to fund university R&D teams in promoting the commercialization of research outcomes.

In August last year, the Shanghai Biomedical Fund signed a strategic cooperation memorandum with Hong Kong Science Park and Shanghai Pharmaceuticals to establish a joint biomedical incubation program and promote the construction of a joint innovation incubator at Hong Kong Science Park. The fund has successfully partnered with six renowned universities in Hong Kong, actively facilitating the commercialization of Hong Kong’s scientific research achievements and strengthening the industrial chain. With a global perspective, the fund is committed to identifying emerging technologies and products in biomedicine, investing in leading core technologies, and assisting in their introduction to mainland China or Hong Kong to benefit local patients. The fund invested in Tofflon, a leading Chinese manufacturer of pharmaceutical equipment, to support the implementation of its internationalization strategy; invested in the Israeli biopharmaceutical company Biomica to assist it in establishing a presence in Hong Kong and expanding its business across the Asia-Pacific region; and assisted its portfolio company ReLive in registering and launching in Hong Kong its cartilage repair cell therapy product—one of only two such approved products worldwide—following ReLive’s full acquisition of the core assets of the German listed biotechnology company Co.Don AG.

 “Shanghai-Hong Kong Biotechnology Innovation and Technology Transfer Symposium” Event Site

In just over two years since its establishment, the Shanghai Biopharmaceutical Fund has cumulatively invested in 37 companies. Among them, three have successfully listed on the Main Board of the Hong Kong Stock Exchange, and six others have initiated their listing processes. Notably, the fund served as the lead investor in 90% of these cases, leveraging nearly RMB 15 billion in social capital. Approved by the Shanghai Municipal People’s Government and initiated by Shanghai Industrial Holdings (Group) Co., Ltd. (SIH Group), the fund is currently supporting SIH Group’s active efforts to promote synergy between Shanghai and Hong Kong’s biotech industries, with plans to establish a biotech fund in Hong Kong.

Liu Dawei, President and Partner of the Shanghai Biopharmaceutical FundHe stated, “The vision of the Shanghai Biopharmaceutical Fund is to build an innovative investment platform in the biopharmaceutical sector that is ‘based in Shanghai and Hong Kong, linked with the Yangtze River Delta, and oriented toward the global market.’ In alignment with Hong Kong’s initiative to vigorously develop its biotechnology industry, we will primarily focus on three directions: First, we will evaluate key early-stage biotechnology projects in Hong Kong originating from universities or research institutions, participating in their incubation and translation to promote the industrialization of basic scientific research at its source. Second, we will invest in high-quality innovative enterprises in Hong Kong, focusing on areas such as new diagnostics, new therapies, new drugs, and new medical devices, thereby driving the upgrading and development of the biotechnology industry chains in both Shanghai and Hong Kong. Third, we will facilitate the landing of projects with internationally cutting-edge capabilities in Shanghai and Hong Kong, benefiting local and global patients. The fund will empower portfolio companies through various means, fostering local innovation while strengthening global competitiveness, thereby demonstrating our differentiated advantages and core strengths.”

Mr. Wong Hak-keung, Chief Executive Officer of Hong Kong Science and Technology Parks Corporation, at the seminarstated: “As the operator of Hong Kong’s largest technology R&D and enterprise incubation base, Hong Kong Science Park Company (HKSTP) is fully committed to supporting policy initiatives and actively collaborating with government, industry, academia, research institutions, and the financial sector. Our goal is to strengthen the local innovation and technology ecosystem and talent pool, and to nurture top-tier start-ups. Meanwhile, HKSTP will actively integrate into the national development framework to consolidate and enhance Hong Kong’s position as an international innovation and technology hub. Backed by robust industrial resources, the Shanghai Biopharmaceutical Fund has extensive experience in cultivating sci-tech enterprises and commercializing scientific achievements, and is well-positioned to connect globally leading biopharmaceutical technologies with both Shanghai and Hong Kong. HKSTP looks forward to creating synergies through strategic cooperation with the Fund, building a more competitive international biopharmaceutical technology platform for innovation, and jointly exploring opportunities in the Hong Kong and international markets.”

 Zuo Min (center), Executive Director and President of Shanghai Pharmaceuticals, as well as Chairman and General Manager of the Shanghai Biopharmaceutical Frontier Industry Innovation Center, engages in discussions with representatives from the ecosystem.

Zuo Min, Executive Director and President of Shanghai Pharmaceuticals, Chairman and General Manager of the Shanghai Biopharmaceutical Frontier Industry Innovation CenterIt stated: “Hong Kong boasts strong foundational research capabilities in biomedicine and possesses unique advantages in the highly promising fields of life sciences and biomedical innovation. As the core platform under Shanghai Industrial Holdings Limited (SIHL), a Hong Kong-based central state-owned enterprise, for developing the big health industry, Shanghai Pharmaceuticals is committed to advancing innovation and internationalization as a key strategic priority in its journey toward becoming a globally competitive leading pharmaceutical company. Shanghai Pharmaceuticals will fully support the Shanghai Biomedical Fund in building an ecosystem that integrates ‘government, industry, academia, research, healthcare, capital, industrial parks, and scientists,’ jointly promoting the incubation and translation of fundamental biomedical research in Hong Kong, with outreach to the Greater Bay Area, Southeast Asia, and even global markets, thereby contributing to Hong Kong’s development as an international hub for science and technology innovation.”

Also in attendance were government leaders, representatives from Shanghai Industrial Holding (SIH) Group, major pharmaceutical and medical device companies (Takeda, Bayer, Lepu Medical, Tofflon), universities and hospitals (Shanghai Institute of Biomedical Technology, Fudan University Shanghai Medical College, Shanghai Jiao Tong University School of Medicine, Shanghai University of Medicine & Health Sciences, ShanghaiTech University, Ruijin Hospital, Huashan Hospital, etc.), limited partners (LPs) from investment funds (CPIC Capital, Guotai Junan Innovation Investment, Lingang New Area Fund, Shanghai International Group, etc.), the Dart Accelerator, as well as numerous portfolio companies of these funds.

Shanghai Bio-Medicine Fund is a municipal-level industrial fund initiated and established by Shanghai Industrial Holdings (Group) Co., Ltd., with a total target assets under management of RMB 50 billion. Leveraging Shanghai’s comprehensive advantages in developing the bio-medicine sector and relying on industrial resources, the Fund aims to build an innovative investment platform for the bio-medicine field that is “based in Shanghai and Hong Kong, linked with the Yangtze River Delta, and oriented toward the global market.” By combining financial capital with industrial resources and integrating domestic and overseas operations, the Fund will focus on key areas in the development of the bio-medicine industry, including biological products, innovative chemical drugs, research and development outsourcing and services, medical devices and diagnostics, as well as innovative business models within the healthcare sector.