Life and Health Industry Enters a New Spring: Transformation, Innovation, and IPO Momentum
The life and health industry has become a new driver of economic development and is a focal point of global attention.
The underlying reason is that the life and health industry is vital to national welfare and people's livelihoods. With its broad scope and extensive industrial chain, it directly influences the development of multiple sectors within the national economy and has become a major direction and key driving force in contemporary international scientific and technological advancement.
To this end,China is also actively promoting the development of the life and health industry.For instance, in 2015, “Healthy China” was elevated to a national strategy, and in the subsequent years, landmark documents such as the 14th Five-Year Plan for Digital Economy Development and the 14th Five-Year Plan for the Development of the Biopharmaceutical Industry were issued, continuously driving the life and health industry toward deeper development across multiple dimensions.
Currently, the market size of China's life and health industry has reached 13 trillion yuan. It has experienced rapid growth over the past eight years, with a compound annual growth rate (CAGR) of 13%, propelling it to become the second-largest market globally.
In this process, companies in the life and health sectors are attracting the attention of investors and significant capital investment.Data from the VCBeat database shows that in the first half of this year, the total investment and financing in China's life health industry reached nearly $10 billion (approximately RMB 64.759 billion), with 623 financing transactions, an increase of 77 compared to the same period last year.
Among these, the digital health and biopharmaceutical sectors accounted for more than half of the total financing, with a combined sum exceeding $6 billion, emerging as particularly dynamic segments within the industry’s overall development.
Of course, this wave of innovation is only just gaining momentum, and significant challenges lie ahead. It therefore requires substantial talent, funding, resources, and policy support, as well as the reinforcement and synergy of the regional industrial ecosystem. This tests the wisdom, endowments, and boldness of every participant entering the field.
As a crucial carrier and foundation for the development of the life and health industry, the industrial ecosystems established by various regions play a significant role in facilitating the establishment of high-quality enterprises, attracting entrepreneurial talent, and enhancing industrial competitive advantages.
Therefore, how to promote the continuous growth and expansion of the life and health industry under new opportunities, and build a world-class health economy industrial cluster, has become an inherent requirement for the development of the life and health industry in various regions.
As is well known, the life and health industry is characterized by “high barriers, long cycles, high risks, and high returns,” making it no easy task to build a suitable industrial cluster for the health economy.
Therefore,For innovative enterprises to cluster, collaborate, and achieve substantial growth, a sufficient local foundation is required. Specifically:
· First, industrial clusters must have comprehensive and well-developed supporting infrastructure, which serves as a solid foundation for attracting and retaining innovative enterprises. After all, life and health companies require specialized facilities and policy support at every stage of their development.
· Second, the life and health industry ecosystem must possess strong ecological synergy capabilities, which form the foundation for fostering mutual learning, integration, and collaboration among enterprises within the ecosystem.
From the perspective of global industrial development, both the life and health innovation ecosystem built in Boston, USA, and the life sciences hub established in Basel, Switzerland, possess the aforementioned two characteristics.
Focusing on China, Zhejiang has also been continuously exploring, practicing, and innovating in the above-mentioned areas, with nearly 20 years of deep engagement.
Taking the digital economy as an example, since the “Digital Zhejiang” initiative was proposed in 2003, Zhejiang has continuously advanced its development and has now established a robust ecosystem.
For instance, in the life sciences sector, Zhejiang Province has been focusing on the development of National Regional Medical Centers and continuously fostering and enhancing the competitiveness of its life and health industry.
However, it is important to note that the key to any industrial planning lies in its implementation.In response, Zhejiang has been sparing no effort to support innovative enterprises from various aspects, including government, industry, academia, research, healthcare, and investment.
A telling detail serves as strong corroborating evidence. As the capital of Zhejiang Province and an innovation hub committed to building China’s “No. 1 City” in the digital economy, Hangzhou has been spearheading major industry summits with digital health as its starting point, aiming to create a platform for exchange and collaboration among stakeholders in the life and health industry. These efforts have already yielded significant results, such as the upcoming “2nd Zhejiang Digital Health Industry Hangzhou Summit.”
The summit aims to inject new momentum into Zhejiang Province’s digital healthcare industry and co-create a more vibrant ecosystem by linking and aggregating core resources from government, industry, academia, research, clinical practice, and investment sectors related to digital health and oncology specialty, thereby establishing a platform for discussion, innovation, and collaboration in the digitalization of oncology care.
Notably, Zhejiang has also delivered a strong preliminary performance in terms of the summit’s tangible outcomes.For instance, the “1st Zhejiang Digital Health and Healthcare Industry Hangzhou Summit” held last year yielded substantial results, including the establishment of AstraZeneca’s Eastern China Regional Headquarters, the Hangzhou International Life Science Innovation Park (iCampus), and the Digital Healthcare Innovation Center, as well as the signing of agreements for five companies—Yijiayi, Pashanhu Society, and Yaocheng Technology—to settle in the park. Major projects such as the AstraZeneca CICC Medical Industry Fund were successfully introduced, and in-depth one-on-one discussions were conducted with 45 renowned multinational medical device and biopharmaceutical companies.
Moreover, following its establishment in Hangzhou, AstraZeneca has accelerated the city’s development into a globally influential hub for biopharmaceutical innovation and a center for digital healthcare innovation and creation, leveraging platform-based incubation and fund mobilization. In the year since its launch, AstraZeneca’s Eastern China Regional Headquarters has achieved outstanding results across multiple areas.
For instance, benefiting from the innovative pilot program of “off-site warehousing,” AstraZeneca’s Eastern China Regional Headquarters obtained its Drug Operation License in January 2022, issued its first invoice in March, and rapidly commenced business operations. It has since achieved hundreds of millions of yuan in cumulative sales revenue, making its due contribution to the regional economy. Additionally, the Eastern Regional Headquarters has joined forces with ecosystem partners to establish the China Smart Health Innovation Center. Integrating three core functions—“joint expert research, collaborative industry innovation, and integrated achievement commercialization”—the center aggregates ecosystem resources to incubate innovative healthcare models. It has developed more than ten integrated diagnosis-and-treatment solutions for whole-disease-course management, which have been implemented in over 1,500 hospitals across eastern China.
Hangzhou iCampus has also continued to exert strong momentum, successfully registering and landing 14 outstanding life health innovation enterprises, introducing more than 100 top talents in the life health sector, and securing approximately 40 patents and software copyrights. Representative companies stationed in the park include Zheng’an Health, Sweet Orange Technology, and Xihe Group, among others.
Furthermore, the Daegu Life and Health Industry Cluster in South Korea, as a representative project from Zhejiang Province, signed an agreement at the China International Import Expo (CIIE); all 22 enterprises in the first batch have completed their industrial and commercial registration. The Kangqiao Health Industrial Park has been established at the Grand Canal Campus of Sir Run Run Shaw Hospital, covering more than 90 mu of industrial land. Fengxigu boasts over 100,000 square meters of property resources and is expected to be operational by the end of the year. Both will serve as significant spatial resources supporting the life and health industry.
It is particularly noteworthy that Gongshu District, the host of this summit, is a fertile emerging ground highly suitable for the development of the life and health industry. The district has designated it as one of its core industrial tracks and is striving to build a new highland for the life and health industry, for three reasons.
· First, Gongshu District has previously nurtured major pharmaceutical companies such as Minsheng, Merck & Co., and Sanofi. Zhongmei Huadong has consistently been the leading enterprise in the jurisdiction. In April last year, the Heavy Ion Medical Center project of the Zhejiang Cancer Hospital of the Chinese Academy of Sciences was also launched and commenced operations, demonstrating a solid industrial foundation and a fertile environment for development.
· Second, the population aged 60 and above in Gongshu District has reached 223,000, marking its entry into a deeply aging society. There is substantial social demand for chronic disease diagnosis and treatment, as well as integrated medical and elderly care services. Developing the life and health industry serves as an effective response to this demand.
· Third, Gongshu District features a harmonious blend of natural landscapes and cultural heritage. Its overarching theme for economic and social development is to create an environment that is livable, business-friendly, tourist-attractive, and conducive to wellness. The district’s characteristic integration of nature into the urban fabric meets the environmental requirements of the life and health industry, while this industry, in turn, highlights the city’s appeal as a place for living and wellness. The two elements are mutually reinforcing and synergistic.
It is evident that Zhejiang is actively exploring, practicing, and innovating in both the overall industrial planning and the concrete implementation of projects, thereby accelerating the transformative evolution of its life and health industry.
A successful industry summit must balance breadth with depth.
The 2nd Zhejiang Digital Health & Healthcare Industry Hangzhou Summit was launched with this mission, continuing to deepen its focus on digital health and healthcare while constantly expanding new frontiers of value. How is this reflected? First, the topics are sufficiently cutting-edge; second, the caliber is high; and third, the format is diverse.
Frontiers of the Topic.This summit not only focused on global trends in digital health but also provided insights into the cutting-edge field of innovative digital diagnosis and treatment in oncology.
As the main summit, the “Digital Health and Healthcare Industry High-Level Forum” encompasses four major segments: data-driven strategies, digital intelligence applications, digital transformation, and digital innovation for the future. It brings together stakeholders from government, industry, academia, research, healthcare, and investment sectors to discuss healthcare through a digital lens and jointly explore the new future of the digital healthcare industry.
At the concurrent forums and roadshows, the summit expanded its focus to oncology diagnosis and treatment by hosting two events: the “Digital Innovation in Oncology Diagnosis and Treatment Forum” and the “Roadshow for Innovative Diagnosis and Treatment and Medical-Engineering Integration Projects.”
Next, consider the high-specification configuration.The summit was jointly hosted by the Zhejiang Provincial Department of Commerce, the Zhejiang Provincial Health Commission, and the Zhejiang Provincial Medical Products Administration; undertaken by the People’s Government of Gongshu District, Hangzhou City; with AstraZeneca as the strategic partner; and supported by the Zhejiang International Investment Promotion Center and the Hangzhou Gongshu District State-owned Investment Holding Group, bringing together significant stakeholders from multiple sectors.
Finally, the diversity of formats is noteworthy.The summit will feature dozens of keynote addresses delivered by leading figures from various sectors, along with roundtable discussions and project pitch sessions. As a platform dedicated to showcasing the insights of industry participants, numerous prominent experts will engage in a “brainstorming” session on the digital transformation of pharmaceuticals, medical devices, smart health, biotechnology, and other fields, while offering profound insights into innovations in digital oncology diagnosis and treatment.
In summary, by featuring cutting-edge topics, a high-caliber lineup of participants, and diverse formats, this summit has maximized the depth and breadth of discussions as well as the richness of resources.
More importantly, the summit extended its focus to oncology diagnosis and treatment, reflecting a core innovation of the industrial ecosystem: continuously expanding new boundaries of value.
Behind this lies the accumulated experience from Gongshu District’s continuous exploration and practice. For instance, building upon iCampus 1.0, an innovation park with a focus on digital healthcare jointly developed by AstraZeneca and the Hangzhou Gongshu District Government, the initiative has been upgraded and deepened into iCampus 2.0, an innovation park characterized by “leadership by academicians and experts, with thematic focuses on digital healthcare and oncology treatment.”
Furthermore, digital healthcare encompasses numerous stages, including drug R&D and disease screening, diagnosis, treatment, and management, offering many collaborative approaches and innovative models worthy of exploration. AstraZeneca’s digital strategy also incorporates digital marketing and digital channels. The implementation of digital marketing enables scientific and medical knowledge to be disseminated more rapidly to physicians and healthcare institutions, thereby helping patients achieve earlier clinical benefits; meanwhile, digital channels facilitate patients’ easier access to medications and services, enhancing healthcare accessibility.
As can be seen, Zhejiang has established a conducive ecosystem not only for summits but also in areas such as value extension, industrial park implementation, and resource matching.
Currently, the new round of technological revolution and industrial transformation is advancing rapidly, and China’s life and health industry is also taking off with this trend.
Behind the industry’s takeoff lies its dependence on the nurturing power of the industrial ecosystem.As the saying goes, “a single tree does not make a forest.” The prosperity of any industry is rooted in a rich and nurturing ecosystem, which is especially true for the life and health industry.
Indeed, beyond the support from various stakeholders such as the government and industrial parks, the development of the life and health industry also requires the participation of every innovative enterprise and market entrant.
It is precisely through the convergence of every incremental innovative force that a new industrial ecosystem poised for global expansion can be accelerated.
Therefore, we warmly welcome all peers in the life and health industry to join us at the 2nd Zhejiang Digital Medical Health Industry Hangzhou Summit, where we will together witness and participate in the industry’s transformative moment. November 11–12, Gongshu District, Hangzhou. We look forward to seeing you there.
Event Schedule:November 11-12, 2022
Event Venue:Radisson Hotel, Xintiandi, Gongshu District