Shanghai Launches New Chapter for Biopharmaceutical Industry under the 14th Five-Year Plan

On the afternoon of January 20, Shanghai held a review of the year’s major events in the biopharmaceutical industry and the signing ceremony for the 2022 Shanghai International Biopharmaceutical Industry Week. Liu Ping, Deputy Director of the Shanghai Municipal Commission of Economy and Informatization, provided a detailed introduction to the “14th Five-Year Plan” for the Development of Shanghai’s Biopharmaceutical Industry. At the event, it was announced that the 2022 Shanghai International Biopharmaceutical Industry Week would be held in Shanghai from September 26 to 30. Six organizations, including JPMorgan Chase, Fosun Pharma, Shanghai Pharmaceuticals, Zhangjiang Group, the Drug Information Association, and E Fund Management, signed agreements to become the first batch of “Strategic Partners” of the Industry Week. The event also saw the official release of Ten Major Events in Shanghai’s Biopharmaceutical Industry and the White Paper on the Development of Shanghai’s Biopharmaceutical Industry.

The biopharmaceutical industry is a key pillar of Shanghai’s strategic emerging industries, an important lever for strengthening the city’s role in leading high-end industrial development and serving as a source of scientific and technological innovation, and one of the three pioneer industries entrusted by the CPC Central Committee to Shanghai with the significant mission of “building world-class industrial clusters.” In 2021, Shanghai accelerated its efforts to establish itself as a hub for biopharmaceutical innovation, high-end manufacturing, talent aggregation, and supportive policies. The scale of Shanghai’s biopharmaceutical industry is estimated to have exceeded RMB 700 billion in 2021, marking another new milestone after first reaching RMB 600 billion in the previous year. Among this, the output value of the manufacturing sector reached RMB 171.2 billion, representing a comparable growth of 12%.

According to the White Paper on the Development of Shanghai’s Biopharmaceutical Industry released recently, during the 13th Five-Year Plan period (2016–2020), Shanghai’s biopharmaceutical industry demonstrated strong growth momentum. The total gross industrial output value of the manufacturing sector increased from RMB 95.86 billion to RMB 141.661 billion, representing a compound annual growth rate (CAGR) of 10.3%. Its share of Shanghai’s total industrial output value rose from 2.9% in 2016 to 4.1% in 2020.Continuous innovation yielded significant breakthroughs in fields such as synthetic biology, stem cells and regenerative medicine, and brain and neural sciences. Shanghai has established a number of major scientific infrastructure facilities and 17 national key laboratories. A total of 14 Class 1 new drugs were approved for initial market launch, eight of which had marketing authorization holders based in Shanghai. Additionally, 918 Class III medical devices received initial registration approvals.Leading and backbone enterprises experienced rapid growth. The total number of pharmaceutical industrial enterprises above designated size increased from 284 to 409, among which those with annual operating revenues exceeding RMB 100 million grew from 150 to 228. Thirty-five companies went public, ranking among the top nationwide.Industrial capacity and spatial layout continued to improve, forming a “1+5+X” industrial structure. Various innovative elements accelerated their aggregation into industrial parks, achieving the “Two Over-80%” targets: more than 80% of biopharmaceutical investment projects were concentrated in industrial parks, and over 80% of the biopharmaceutical manufacturing output value was contributed by these parks.The industrial ecosystem was continuously optimized. Shanghai pioneered the establishment and launch of the “Municipal Hospital-Enterprise Collaborative Research and Innovation Platform (HI-CLIP) – Clinical Trial Accelerator.” Shanghai became the most active region in China for investment and financing in the healthcare sector, and the Shanghai Biopharmaceutical Industry Equity Investment Fund was established. The city is home to one-fifth of China’s high-level talents in the biopharmaceutical field, including academicians and Changjiang Scholars, and accounts for one-quarter of the nation’s industrial workforce. Furthermore, the Yangtze River Delta Branch Centers of the Center for Drug Evaluation and Inspection and the Center for Medical Device Technology Evaluation and Inspection under the National Medical Products Administration (NMPA) were established in Shanghai.

Shanghai recently released the "14th Five-Year Plan for the Development of Shanghai's Biopharmaceutical Industry," clearly stating that Shanghai will aim for the "high-end, intelligent, and internationalized" development direction of the biopharmaceutical industry, deeply implement the "Zhangjiang R&D + Shanghai Manufacturing" initiative, and accelerate the creation of a globally influential innovation hub and world-class biopharmaceutical industry cluster.

By 2025, Shanghai’s biopharmaceutical industry will see a significant enhancement in its development level, playing a more prominent leading role in the coordinated development of the Yangtze River Delta’s biopharmaceutical sector. Its international influence as a source of industrial technological innovation will continue to grow, and it will initially be established as a core hub for a world-class biopharmaceutical industry cluster. The city’s biopharmaceutical industry scale will exceed RMB 1 trillion, with manufacturing output value reaching RMB 240 billion. A cumulative total of 26,000 mu of available space will be provided, and six industrial parks each with an output value exceeding RMB 10 billion will be completed. During the 14th Five-Year Plan period, the number of domestically produced Class 1 innovative drugs and innovative medical devices approved for market launch will reach 15 and 35, respectively. Additionally, 25 new companies will be listed.

In alignment with industrial development goals, the city will implement five major initiatives: enhancing innovation origination capabilities, strengthening industrial clusters, accelerating the commercialization of innovative achievements, promoting deep integration between industry and healthcare, and fostering a favorable industrial ecosystem. Concurrently, ten key projects will be undertaken to support these initiatives, including the establishment of major basic scientific research platforms, breakthroughs in core key technologies, development of innovation service carriers, supplementation, stabilization, and strengthening of industrial chains, value enhancement for leading enterprises, advancement of advanced manufacturing capabilities, improvement of clinical translation capacities, promotion of innovative products, optimization of market access services, and integration of industry and finance.

From October 11 to 14, 2021, the inaugural Shanghai International Biopharma Industry Week was successfully held. Centered on the theme “Collaborating for the Future, Driving New Growth,” the event brought together more than 100 leading scientists, over 100 top-tier investors, and more than 1,000 prominent entrepreneurs. It featured heavyweight international brand conferences such as those organized by JPMorgan and the Drug Information Association (DIA), establishing itself as a key platform for showcasing the latest achievements in the global biopharmaceutical industry, discussing frontier innovations, and fostering cooperation and exchange. The event garnered widespread attention and enthusiastic response from biopharmaceutical media, professionals, and the general public worldwide.

The 2022 Shanghai International Biopharma Industry Week will feature a series of activities spanning the entire year. The “5-Day Industry Week” is scheduled for September 26–30, featuring a high-profile opening ceremony, multiple high-level concurrent events, and prestigious forums. Meanwhile, the “360-Day Activities” initiative will continue, launching the “National Biopharma Week Tour” with nationwide reach and a series of forum activities focused on Shanghai.

JPMorgan Chase, Fosun Pharma, Shanghai Pharmaceuticals, Zhangjiang Group, the Chinese Society for Pharmaceutical Information, and E Fund have become the first batch of “Strategic Partners” of the Industry Week. They will not only provide comprehensive support for various initiatives driving the development of Shanghai’s biopharmaceutical industry but also host high-profile concurrent events during each Industry Week over the next five years and beyond, working together to build a biopharmaceutical industry event brand with Shanghai landmark significance and global influence.

They are as follows:

1. Deeply implement the “Zhangjiang R&D + Shanghai Manufacturing” initiative to accelerate the localization of innovative achievements in Shanghai;

2. Two new cell therapy drugs are the first to be approved for market launch, ushering China’s cell therapy sector into a new era;

3. Supporting global anti-pandemic efforts, achieving comprehensive breakthroughs in the development of urgently needed drugs and medical devices for COVID-19 prevention and control;

4. Establish a policy support system for the “R&D + clinical + manufacturing + application” industrial chain, and release new guidelines for high-quality industrial development;

5. Building Zhangjiang into an innovation hub for the biopharmaceutical industry, with the first local industrial legislation prominently enacted;

6. The 14th Five-Year Plan for the Development of the Biopharmaceutical Industry was promulgated, clarifying the coordinated development direction of the industry's six chains in the future;

7. The inaugural International Biopharmaceutical Industry Week kicked off to great acclaim, establishing a world-class brand event;

8. The industry scale continues to reach new heights, with innovative drugs and medical devices as well as market entities flourishing;

9. Innovative mechanisms and joint efforts: Establishment of the Yangtze River Delta Medical Innovation Development Alliance and the first batch of Biopharmaceutical Product Registration Guidance Service Workstations;

10. Clinical trial acceleration has significantly increased, with high-quality clinical resources becoming a new driving force for industry development.