Tai-Lian-Xi National-Level Biopharmaceutical Cluster Launches to Advance Healthy China Initiative

On November 19, the 13th China (Taizhou) International Medical Expo opened. At the opening ceremony, a launch event was held for the construction of the Taizhou-Lianyungang-Wuxi National Biopharmaceutical Cluster.

The Ministry of Industry and Information Technology (MIIT) recently published the list of winners from the final round of China’s third Advanced Manufacturing Clusters competition, with the biopharmaceutical clusters of Taizhou, Lianyungang, and Wuxi securing a place. It is reported that these three clusters boast a robust industrial foundation, comprising 3,199 pharmaceutical companies, including 498 enterprises above designated size. By the end of 2021, the industrial output value of pharmaceutical companies within these clusters reached RMB 304 billion, representing a year-on-year increase of 15%. This accounted for approximately 9.02% of the national total output value of the industry and nearly 50% of Jiangsu Province’s total. In 2021, the clusters saw 66 new investment projects each valued at over RMB 100 million, with a total investment amounting to RMB 55.97 billion.

△ Launch Ceremony Site. Photo by Li Shouyi

Experts have stated that the inclusion of the Taizhou-Lianyungang-Wuxi biomedical cluster in the "national team" is well-deserved. First, Taizhou boasts a unique mechanism for the joint establishment of China Medical City by national ministries and the provincial government. It has gathered globally renowned enterprises such as Yangtze River Pharmaceutical Group, Recbio, Nestlé Health Science, and Shuoshi Biotech. As the largest pharmaceutical industrial park in China with the most complete industrial chain, it has developed leading and specialized industries including chemical drugs, biological products (vaccines, antibodies, etc.), diagnostic reagents, modern traditional Chinese medicine, and special formula foods. The cluster has the highest concentration of vaccine industry players in the country.

Furthermore, Taizhou boasts three “national uniques”: it is the only pilot zone for big health development within the Yangtze River Economic Belt, the only pilot zone for the clustered development of novel vaccines and specific diagnostic reagents, and the only national-level pilot zone for financial support in upgrading reforms. Lianyungang, home to leading enterprises such as Hengrui Medicine, Hansoh Pharmaceutical, Chia Tai Tianqing, and Kanion Pharmaceutical, has established significant technological and industrial advantages in emerging pharmaceutical sectors, including novel anti-liver disease and anti-tumor drugs, new traditional Chinese medicines and formulations, and pharmaceutical packaging materials. Wuxi has gathered leading backbone enterprises such as Fresenius Kabi Huairui Pharmaceutical and Tianjiang Pharmaceutical, possessing global competitiveness in drug design, clinical trials, and CXO services (such as CRO and CDMO). Both AstraZeneca and WuXi AppTec have established industrial presences in Taizhou and Wuxi.

The cluster boasts robust corporate strength. It comprises one national-level Manufacturing Single Champion enterprise, two global branded pharmaceutical companies, four enterprises listed among China’s Best Industrial Enterprises for Pharmaceutical R&D Pipelines, seven enterprises ranked in the Top 100 Chinese Pharmaceutical Industry, nine national-level “Specialized, Refined, Differential, and Innovative” (SRDI) Little Giant enterprises, 41 publicly listed or quoted companies, and 301 high-tech enterprises.

The cluster demonstrates prominent product advantages. There are 32 major products with annual sales revenue exceeding RMB 1 billion each. The vaccine industry is highly concentrated, with 14 vaccine enterprises; among the nine vaccine manufacturers in Jiangsu Province that have achieved mass production, six are located within the cluster. The proportion of products winning bids in national centralized procurement is the highest in China. From 2021 to present, 21 enterprises from Taizhou, Lianyungang, and Wuxi have won 278 batches in the National Centralized Drug Procurement, accounting for 30% of the winning enterprises in Jiangsu Province and 5% of the total number of winning enterprises nationwide.

The cluster boasts a comprehensive innovation system. In 2021, the cluster’s R&D investment reached RMB 31 billion, accounting for 10.2% of its sales revenue, with 863 newly granted invention patents. The cluster has established a support system covering the entire industry chain, including molecular design, small-scale and pilot trials, preclinical studies, clinical trials, large-scale production, and sales. It hosts 42 specialized public service platforms, 33 of which are at the provincial level or above, and 52 innovation carriers such as national key laboratories and enterprise technology centers.

It is reported that the Tai-Lian-Xi biomedical industry cluster will achieve a synergistic effect where “1+1+1>3” through strategic alliances among leading players. By deepening its presence in high-growth sectors, refining collaborative policies, and promoting integrated development, the cluster aims to establish itself as a global hub for biomedical R&D and manufacturing, the strongest domestic industrial manufacturing base, and a national demonstration zone for advanced manufacturing clusters. Its ultimate goal is to provide the public with safe, effective, and affordable medicines they can trust.