Baoshan Medipark: Building a Comprehensive Industrial Ecosystem to Create a Premium Specialized Biopharmaceutical Park

“Ten miles of foreign concessions, a den of iniquity; winds and clouds converge on the Shanghai Bund.” Over the past century, despite many shifts in the tides of history, the Magic City’s splendor remains undimmed.

Shanghai, where the classical elegance of Jiangnan culture coexists with the modern sophistication of an international metropolis. The Shanghai World Financial Center, Jin Mao Tower, and Oriental Pearl Tower are highly emblematic of their era, while Shikumen gatehouses and historic Western-style villas carry a profound sense of history.

Located in the Yangtze River Delta region, Shanghai has remained China’s most economically developed city for consecutive years, serving as an international hub for economics, finance, trade, shipping, and technological innovation. In 2021, Shanghai’s GDP surpassed RMB 4 trillion, with a real growth rate of 8.1%, ranking first among the “Top 10 Cities by GDP in 2021.”

BiopharmaceuticalsIt is an important branch of the pharmaceutical industry, characterized by being knowledge-intensive, high in technological content, and broad in disciplinary scope. It is a strategic emerging industry in China and one of the country's five pillar industries each valued at 10 trillion yuan, as well asOne of the three leading industries prioritized for development in Shanghai.According to official data, the scale of Shanghai’s biopharmaceutical industry is estimated to exceed RMB 700 billion in 2021 and surpass RMB 1 trillion by 2025, making it a critically important link in Shanghai’s economic chain.

Shanghai has gathered a cluster of world-leading large-scale scientific research institutions and corporate R&D centers, including the CAS-affiliated National Center for Protein Sciences Shanghai and the Shanghai Institute of Materia Medica; renowned domestic universities such as Fudan University, Tongji University, and Shanghai Jiao Tong University; and R&D centers of global top-tier pharmaceutical companies like Novartis, Roche, and Pfizer.

Biopharmaceutical industrial parks serve as a critical foundation for enhancing the spatial carrying capacity of the industry and accelerating the local translation of innovative achievements. To implement the national mandate for Shanghai to accelerate its development into a leading hub for the biopharmaceutical industry, Shanghai has issued the Implementation Plan for Promoting the Specialized Development of Biopharmaceutical Industrial Parks, proposing the establishment of a “1+5+X” spatial layout for the biopharmaceutical industry.Centered on the Zhangjiang Biopharmaceutical Innovation Core Area, Build Five Municipal-Level Specialized Industrial Park Brands, one of which is located in Baoshan DistrictNorth Shanghai Biopharmaceutical High-End Manufacturing Cluster.

In September 2019, the Baoshan District Government and Guosheng Group signed a strategic cooperation framework agreement to jointly promote high-quality industrial development in Baoshan. In December of the same year, the Luodian Town Government of Baoshan District reached a consensus with Guosheng Industrial Investment on the construction of the North Shanghai Biopharmaceutical Park. In December 2020, the groundbreaking ceremony for the North Shanghai Biopharmaceutical Park project was officially held.

“Guosheng Capital Investment · Baoshan Medicine Valley” (MEDIPARK) is the demonstration launch project of the North Shanghai Biomedical Park., with a total planned area of 200 mu, the first phase covers 100 mu, and the total building area is approximately 146,700 square meters. It is divided into three major functional areas: R&D area, pilot-scale production area, and production area, to meet diverse carrier needs.

As the first demonstration project in northern Shanghai, Baoshan Biopharma Valley has been recognized as a 2021 Key Municipal Project of Shanghai, a key project for the construction of Shanghai’s Science and Technology Innovation Center during the “14th Five-Year Plan” period, and a priority initiative in Baoshan District’s efforts to establish itself as the main hub of Shanghai’s Science and Technology Innovation Center. The park focuses on developing high-value-added manufacturing in biologics, medical devices, and original innovative drugs, while attracting corporate headquarters, R&D centers, advanced production facilities, and key segments of the industrial chain.

According toMr. Dai, Assistant to the General Manager of Baoshan Medicine ValleyIntroduction: Phase I of the park, covering 100,000 square meters, will be delivered this summer, with the first batch of enterprises moving in. Full completion is expected by the end of the year, and the park is scheduled to officially open in May 2023, with an occupancy rate of approximately 70%.

Mr. Dai stated that, upon reaching full production capacity, the project is expected to generate over RMB 100 million in tax revenue and achieve an output value exceeding RMB 1 billion, attract approximately 100 biopharmaceutical companies of various types, and create more than 1,000 jobs. It will serve as a strategic forefront for the construction of Baoshan District’s Biopharmaceutical Science and Technology Innovation Center, set a new benchmark for specialized biopharmaceutical industrial parks in Shanghai, and emerge as a new highland for the biopharmaceutical industry cluster in the Yangtze River Delta region.

Located in Baoshan District, Shanghai, the North Shanghai Biomedical Industrial Park is 50 kilometers from Zhangjiang High-Tech Park, 75 kilometers from Jinshan Industrial Zone, and 90 kilometers from the Lingang New Area... Surrounded by strong competitors, the park faces fierce industrial competition. As a newcomer, how will North Shanghai stand out among numerous industrial parks and carve out a path for differentiated development?

In this regard, Mr. Dai stated that, first and foremost, Zhangjiang focuses on leading domestic and international pharmaceutical companies as its core elements, with an emphasis on innovative R&D and incubation in biomedicine. However, as the core area of Zhangjiang is approaching saturation, industrial land available for production and manufacturing is scarce, forcing enterprises to seek other industrial parks to complete their manufacturing and mass production processes. On this basis,The North Shanghai Biopharmaceutical Industrial Park is the municipal-level specialized park closest to Zhangjiang and can accommodate these manufacturing processes.

Secondly, in terms of positioning, Shanghai’s five municipal-level specialized industrial parks pursue differentiated development.North Shanghai Biopharmaceutical Industrial Park focuses on high-end manufacturing in the biopharmaceutical sector.Each municipal-level specialized industrial park has its own differentiated positioning,This misalignment is precisely the key to the development of northern Shanghai.Among them, as the inaugural project in northern Shanghai, Baoshan Medicine Valley has its own distinctive positioning. Baoshan Medicine Valley is striving to build a municipal-level featured boutique micro-park,Baoshan Medicine Valley is capable of accommodating both R&D enterprises and manufacturing companies, with a focus on deepening its expertise in niche sectors such as cell therapy and nucleic acid drugs.“We have already introduced several leading companies from niche, high-demand sectors such as mRNA vaccines and CAR-T therapy.”"Mr. Dai said."

Finally, Shanghai’s “1+5+X” biopharmaceutical industry development framework advocates the model of “R&D in Zhangjiang, Manufacturing in Shanghai,” establishing a collaborative network with Zhangjiang as the R&D core and five specialized parks as industrialization bases, thereby effectively promoting high-level resource agglomeration and spatial collaboration and sharing.

This is equivalent to"Standing on the shoulders of giants" in North Shanghai.From a policy perspective, North Shanghai is part of the 530-square-kilometer Zhangjiang Special Demonstration Zone and benefits from the broader Zhangjiang policies. In terms of industrial collaboration, complementary linkages between parks allow North Shanghai to leverage the “Zhangjiang Halo Effect” by hosting production bases for companies whose R&D headquarters are located in Zhangjiang. Regarding resources, Zhangjiang boasts robust enterprise networks, talent pools, and capital capabilities, all of which continue to strengthen and support the further expansion of North Shanghai’s biopharmaceutical industry.

To date, the North Shanghai Biomedical Industrial Park covers areas such as drug R&D, pharmaceutical and medical device manufacturing, precision medicine, and pharmaceutical outsourcing services. It has gathered a number of enterprises and platforms, including the SPH CanSino vaccine plant, Fosun Pharma, Sinopharm Group, Health & Life United, Zhaohui Pharmaceutical, Baoji Pharmaceutical, DiaSorin (Italy), Chia Tai Tianqing Kangfang, Thalis, Jingze Biology, Drug Farm, Hengdao Pathology, and Wutong Biology, along with several biomedical technology platforms and shared clinical trial service platforms.

Baoshan District boasts vast industrial space and a rich array of application scenarios. Standing at the new starting point of a new era, Baoshan is committed to building itself into the main stronghold of Shanghai’s Science and Technology Innovation Center. As a key pillar in the city’s new spatial pattern of “North-South Transformation,” Baoshan is making every effort to unlock the immense potential of its biopharmaceutical industry.

For Baoshan Medicine Valley, although it is still in its early stages, it has amassed multiple advantages in terms of policy, location, platforms, and funding. These strengths will serve as the core drivers propelling the forward development of the biopharmaceutical industry.

1. Significant locational advantages.Baoshan Medicine Valley, located in Luodian Town of Baoshan District, is the biopharmaceutical manufacturing hub closest to downtown Shanghai and a pivotal node for the development of the biopharmaceutical industry in the Yangtze River Delta. It is situated 25 km from People’s Square, 50 km from Zhangjiang Pharma Valley, and 30 km from Pudong International Airport, all within a one-hour drive. It is also 80 km from Suzhou BioBAY.

Surrounded by water on three sides, the park offers direct access to rivers and the sea. It is bounded by the Panjing River Ecological Corridor to the east, the Lianqi River to the south, Panjing Road to the west, and the Baitang River to the north. Located 4 kilometers from Meilan Lake Station on Metro Line 7, it is in close proximity to the Shanghai Suburban Ring Expressway (G1501) and the Shanghai–Chongming Expressway (S7). The area boasts abundant educational and medical resources, well-developed residential amenities, and a superior ecological environment.

Second, strong policy support.Baoshan District has actively provided guidance, introduced multiple key policies to support the development of the biopharmaceutical industry, and released“30 Measures for Sci-Tech Innovation”andSpecial Policies for the Science and Technology Park Surrounding Shanghai University, and provide targeted policy support for major biomedical projects. This April, Baoshan District will also introduceBaoshan Special Support Policy for Biopharmaceuticals.

In addition, resident enterprises can enjoy various preferential policies, including Shanghai municipal special funds, the Greater Zhangjiang policy, the investment policy of Luodian Town, and the policies for the 104 Industrial Community zone. The industrial park also provides dedicated one-on-one services to help enterprises better access policy support and achieve the fastest possible implementation and commercialization.

Third, the talent system is well-developed.The industrial park has established an expert advisory team spanning diverse fields, including engineering construction, financial investment, environmental safety, and drug regulatory review. This team not only provides guidance to the park’s operations and management teams to enhance professionalism across all aspects of the park but also offers comprehensive professional support to tenant enterprises.

In the realm of corporate talent development, the industrial park will regularly collaborate with universities, leveraging expert teams as mentors to serve as a youth practice base and an internship base for higher education institutions. This initiative aims to build a systematic capability for talent cultivation, while integrating resources and facilitating talent placement according to the specific needs of enterprises within the park.

4. Innovating the Fund Ecosystem.Guosheng Group innovatively proposed the “Fund + Base + Industry + Think Tank” development model and established Shanghai Guosheng Industrial Transformation Investment Management Co., Ltd. (Guosheng Capital). Guosheng Capital organized and built a ““Industrial Park Funds + Industrial Investment Funds + Government Guidance Funds” Fund Ecosystem, established a special fund of approximately RMB 500 million for the biomedical industrial park.

Leveraging the advantages of fund clustering, the industrial park has adopted market-oriented approaches to comprehensively meet capital needs at both the park level—for land development, infrastructure construction, and investment promotion and operations—and the biopharmaceutical enterprise level—for R&D investment and rapid growth. This strategy has also facilitated a transition from traditional government fiscal subsidies to a guided fund investment model that combines industry incubation with government guidance.

In addition to these advantages, Baoshan Medicine Valley boasts comprehensive supporting facilities, including Shanghai World Foreign Language Education Group’s Affiliated Meilan Lake School, Aurora College, Luodian Hospital, an exhibition center, and a golf course, offering a full range of educational, medical, and leisure amenities.

In terms of public utilities, the industrial park offers direct steam supply, dual-circuit power supply, and hazardous materials storage services. Regarding safety and environmental protection, the park has adopted the “Environmental Steward” and “Safety Steward” concepts. Notably, the Nanjing University Environmental Planning and Design Research Institute serves as a specialized expert team for environmental matters, providing comprehensive environmental services to enterprises.

Furthermore, the park boasts a superior ecological environment with numerous scenic areas nearby. Luodian Ancient Town, first established during the Zhizheng reign of the Yuan Dynasty, has a history spanning over 600 years. Its white-walled, black-tiled residences line the banks of the Lianqi River, exuding an atmosphere of tranquility and harmony. Meilan Lake features shimmering waters, distinctive sculptures, and a standing clock tower paired with red-walled, black-tiled Western-style houses, radiating a strong exotic charm. Additional attractions such as Baoshan Temple, the Nordic-style Street, and Wendao Garden further enhance the unique appeal of Baoshan Medicine Valley.

Baoshan BioValley’s vision is to grow alongside leading life sciences enterprises and industry pioneers, becoming the ideal industrial park for sector development. To this end, the park has established a “1+3+X” high-quality service system, setting a global benchmark for specialized biomedical park services and providing comprehensive, integrated professional support and services to foster the incubation and industrialization of biomedical technologies.

“1” refers to Baoshan Medicine Valley, “3” refers to the park’s specialized technical service platform, innovation service platform, and multi-functional service platform, and “x” refers to the diversified services provided by these platforms.

Tailored to the specialized needs of biopharmaceutical enterprises, we provide professional services including environmental stewardship, hazardous materials storage, direct steam supply, logistics and transportation, centralized procurement of consumables, integrated energy solutions, and supply chain management.

Focusing on innovation in the biopharmaceutical industry, we provide innovative services including biopharmaceutical R&D incubators, public laboratories for biopharmaceutical quality testing, experimental animal centers for biopharmaceutical research, big data cloud service centers, consulting service centers for regulatory compliance and product registration, and industrial technology service centers.

Centered on comprehensive supporting facilities within the industrial park, we provide specialized services including fund investment, bank financing, talent apartments, lifestyle amenities, ecological spaces, human resources, corporate management, policy resources, conference and exhibition services, smart park solutions, and community culture.

Baoshan Medicine Valley is building a municipal-level specialized “park within a park,” and in addition to its biopharmaceutical focus, it places greater emphasis onNucleic Acid Drugs and Cell Therapy Sector, the functional service platform of the industrial park is also specifically designed for enterprises in niche sectors.

Furthermore, the industrial park provides enterprises with menu-style services by matching and recommending specific standard service resources they require, thereby improving the integration of upstream and downstream resources and building a comprehensive ecosystem service chain.

“By leveraging service platforms such as incubators, we are also actively engaged in incubating scientific research projects at neighboring universities. From a patent or an idea held by faculty members to the market-oriented translation of scientific achievements, we facilitate beneficial linkages among the industry chain, universities, and research institutes, helping these projects achieve commercialization. Currently, we are jointly establishing the New Drug Innovation Intelligence Research Institute with the School of Pharmacy at East China University of Science and Technology, building functional platforms for new drug R&D and pharmaceutical formulations, as well as key laboratories.”

“The research institute can also help biopharmaceutical companies address the training and placement of researchers,” added Mr. Dai.

It is clear that, both in terms of policy and services, Baoshan Biopharma Valley has sounded the clarion call and set a benchmark for the development of the biopharmaceutical industry in northern Shanghai, driving the entire sector toward high-quality growth at an accelerated pace.

“The development of Shanghai’s biopharmaceutical industrial parks has a long history. It began with companies acquiring land from the government, building factories, and commencing production. Later, with the rise of Zhangjiang, the concept of industrial clusters gradually emerged. After decades of development in established industrial parks such as Zhangjiang, Lingang, and Jinshan, the industrial park model has gradually matured,” said Mr. Dai.

“In fact, we find that specialized biopharmaceutical parks are highly necessary. The Yangtze River Delta is a hub for the development of China’s biopharmaceutical industry, but many well-known biopharmaceutical parks in this region are already at full capacity.”Professional biomedical parks are scarce.“, it is also due to scarcity that we have developed such a park.”

According to Mr. Dai, the design, planning, construction, and operation of Baoshan Bio Valley comprehensively take into account the requirements for intensive land use; the hardware needs of biopharmaceutical enterprises for R&D and production facilities; utility demands such as environmental protection, safety, industrial steam, natural gas, hazardous materials management, and logistics transportation; lifestyle amenities for high-end talent in the biopharmaceutical sector; and ecological landscape requirements that integrate water, greenery, and gardens. Upon completion, the project will become a relatively scarce, specialized, and high-quality carrier for biopharmaceutical R&D and production in the Yangtze River Delta region.

Looking toward 2022, Baoshan has witnessed rapid growth in industrial scale and continuous improvement of its industrial chain. It has gathered more than 200 biopharmaceutical enterprises, achieving a twofold increase within two years, with a leading tier taking shape and long-tail effects becoming evident. By introducing high-quality enterprises across various vaccine sub-sectors, Baoshan has achieved physical clustering, promoting deep integration between the vaccine innovation chain and industrial chain. Baoshan is accelerating the cultivation of a specialized medical device industrial chain, driving the rapid rise of sectors such as in vitro diagnostic reagents, instruments and equipment, implantable materials, and precision medicine, fostering a vibrant landscape where small and micro enterprises with strong innovation capabilities are thriving.

Looking further into the future, Baoshan Bio-Valley aims to grow alongside top-tier life sciences companies and industry-leading talents. It seeks not only to support the development of the North Shanghai Biopharmaceutical Park and establish Baoshan as a hub for biopharmaceutical industry clustering, but also to collaborate with like-minded partners in driving the rapid and high-quality development of the biopharmaceutical sector.