Ningbo Accelerates Life Science-Driven Health Industry Layout with New Policy and IPO Filing

Biopharmaceuticals is a strategic emerging industry prioritized for development in China. Amid the pandemic, societal attention toward the biopharmaceutical sector has reached unprecedented levels. Local governments have successively introduced specialized policies to seize development opportunities in the biopharmaceutical industry, making biopharmaceutical investment a hot spot once again. Driven by multiple factors, the industry is entering a critical window of opportunity for growth.

As one of the three major biomedical industry clusters, the Yangtze River Delta economic circle holds a pivotal position in China’s biomedical sector. With the integrated development of the Yangtze River Delta region elevated to a national strategy, the biomedical industry in this area has gathered robust momentum for rapid growth. The Outline Plan for the Integrated Development of the Yangtze River Delta Region explicitly identifies biomedicine as one of the ten key industries for the new round of high-quality development in the region and proposes the establishment of a number of national-level strategic emerging industry bases. Driven by supportive policies, the advantages of the Yangtze River Delta economic circle in developing its biomedical industry continue to become more prominent.

Ningbo is one of the first 38 pilot cities for the National Healthy Cities Initiative in China. Over the years, it has actively responded to the “Healthy China” initiative and placed significant emphasis on the development of the medical and general health industry within the city. In 2018, Ningbo issued the Several Policy Measures for Accelerating the Development of the Biopharmaceutical Industry in Ningbo, laying an early foundation for cultivating the biopharmaceutical sector. To foster the growth of the biopharmaceutical industry into a RMB 100 billion-level cluster within the “246” Trillion-Yuan Industrial Cluster framework, the city subsequently released the Special Plan for the Development of the Biopharmaceutical Industry Cluster in Ningbo and the Three-Year Action Plan for Cultivating the Biopharmaceutical Industry Cluster in Ningbo, thereby accelerating the cultivation and development of the sector. After years of development, Ningbo’s biopharmaceutical industry has established considerable strength in areas such as in vitro diagnostic reagents, medical imaging equipment, optical instruments, and medical polymer materials.

Today, Ningbo attaches great importance to building a robust ecosystem for the biopharmaceutical industry. Aligning with its goal of achieving a trillion-yuan industrial scale, the city is implementing targeted policies—focusing on aggressive investment attraction, strengthened incubation, platform development, and accelerated commercialization—to cultivate the biopharmaceutical sector and expedite the construction of a Healthy City.

On October 30, 2020, at 14:30, VCBeat joined hands with Ningbo Life Science City to co-host the Ningbo Urban Drive Innovation Forum and Life Health Policy Release, themed “Power of Transformation, Future of the City.” The forum adopted a hybrid online-and-offline format to interpret the newly issued policy titled “Ningbo’s Measures for Promoting the Development of the Biopharmaceutical Industry.” Distinguished guests, including industry experts, representatives from investment institutions, city operators, and senior industry researchers, were invited to discuss cutting-edge topics such as the development of the medical and health industry, breakthroughs and upgrades for life science enterprises, and operational strategies for building future landmark cities in healthcare.

Amid the current window of opportunity for the biopharmaceutical industry, Ningbo City has formulated and issued the “Policy Opinions on Accelerating the Development of the Biopharmaceutical Industry in Ningbo” (hereinafter referred to as the “Opinions”) to seize this strategic moment and expedite the scaled, clustered, and high-end development of its biopharmaceutical sector, thereby launching a new round of strategic planning and layout for the industry.

Compared with the goal of building a RMB 100 billion biomedical industry, Ningbo’s biomedical sector faces two prominent shortcomings: the lack of leading enterprises (or projects) and the absence of a mature industrial ecosystem. Therefore, the “Opinions” emphasize the implementation of major short-term industrialization projects, the cultivation of high-growth-potential enterprises, and the translation and application of emerging technologies representing future trends. The aim is to gradually drive and form an industrial ecosystem through the introduction and cultivation of industrialization projects (enterprises). In line with the current stage of industrial development, Ningbo’s new policies also strengthen and refine support for the construction of public service platforms and specialized industrial parks, while increasing support for R&D and innovation. Once an industrial public service platform obtains national qualification accreditation, it will receive a subsidy equivalent to 30% of its total investment, capped at RMB 20 million. Meanwhile, Ningbo supports enterprises in obtaining international qualifications and certifications, provides rewards for innovative drug and medical device production models under the new Marketing Authorization Holder (MAH) system, and encourages various investment funds to increase industrial support. It also supports leading enterprises in establishing biomedical investment funds, guiding other social capital to support new drug development, innovative medical device projects, and the construction of industrial parks.

At the event, Ms. Li Li, Director of Enterprise Services for East China at Cushman & Wakefield, pointed out: “Ningbo has immense potential for developing its big health economy. In 2019, there were 84 enterprises above the designated size in Ningbo’s life and health industry, with a total industrial output value of RMB 11.88 billion. The city aims to expand the scale of its core industries to over RMB 40 billion by 2022, equivalent to 3% of its previous year’s GDP. Furthermore, building on its robust manufacturing foundation, Ningbo is accelerating the development of three new tracks: digital technology, smart technology, and life science technology. Among these, internet healthcare—a fusion of the life and health industry with digital and intelligent technologies—played a significant role during the pandemic response and is now seizing major development opportunities. The increasingly comprehensive policy support also reflects the Ningbo municipal government’s determination to vigorously develop the big health industry and leverage it as a breakthrough point for promoting industrial transfer and upgrading.”

Ms. Li Li, Director of the Enterprise Services Department for East China, Cushman & Wakefield 

As one of the three major clusters of the biopharmaceutical industry, the Yangtze River Delta economic circle occupies a significant position in the sector’s development. According to the “2020 Top 100 Biopharmaceutical Industrial Parks Ranking” jointly released by CCID Consulting and Sina Medicine, the top three parks were Shanghai Zhangjiang Hi-Tech Park, Suzhou Industrial Park, and Zhongguancun Science Park; a total of 31 industrial parks from the Yangtze River Delta economic circle made the list. In 2018, the operating revenue of the pharmaceutical manufacturing industry in the Yangtze River Delta region reached RMB 660.867 billion, accounting for 27.24% of China’s total pharmaceutical manufacturing operating revenue. As the high-quality integrated development of the Yangtze River Delta region has been elevated to a national strategy, the biopharmaceutical industry in the Yangtze River Delta economic circle is poised to reach new heights.

At the conference, Mr. Zhou Hongbin, Managing Director at Legend Capital, stated, “In 2021, the life and health industry will continue to demonstrate growth momentum. However, in terms of overall industrial development, innovative enterprises have immense room for expansion. Meanwhile, benefiting from the Yangtze River Delta integration strategy, Ningbo has significant potential to undertake industrial upgrading from Shanghai and other regions. By vigorously developing a high-end, efficient, and innovative new-era ecosystem for the big health industry, Ningbo can achieve late-mover advantage and overtake competitors on the curve.”

Mr. Zhou Hongbin, Managing Director of Legend Capital

To vigorously develop the broader health and medical industries, Ningbo has selected its southern gateway as the site for the construction of the Ningbo Life Science City. Strategically located at the convergence of Fenghua, Haishu, and Yinzhou districts, the Life Science City boasts a superior geographical position. In terms of transportation, Line 3 of the Ningbo Metro and the Yinfeng Line have established a station at Fangqiao, in close proximity to the Life Science City. The city features a well-planned road network, including Rujiang Road and Huicheng Road, which ensure efficient connectivity with major urban expressways such as the Airport Expressway, Ningbo Ring Expressway, Yongjin Expressway, and Yongtaiwen Expressway. Regarding resource advantages, the Life Science City benefits from inherent strengths, notably the presence of Ningbo No. 1 Hospital, which provides a foundational impetus for the development of the medical and health industries. Furthermore, the Life Science City will actively collaborate with renowned domestic universities to introduce high-quality fundamental resources.

Situated at the southern gateway of Ningbo, the Life Science City boasts multiple advantages for promoting the development of the biopharmaceutical industry. Ms. Ding Jing, Assistant General Manager of the Ningbo Life Science City Project, stated at the forum: “In 2016, administrative division adjustments in Ningbo brought favorable conditions to the city’s overall life and health industry. With the southward extension of rail transit and the comprehensive relocation of Ningbo No. 1 Hospital, Fenghua has gradually emerged as a concentrated hub for the life and health industry, driven by Ningbo No. 1 Hospital. Thus, the Life Science City was established.”

Ms. Ding Jing, Assistant to the General Manager of the Life Science City Project

Currently, Ningbo’s life sciences industry boasts high-quality enterprises such as Menovo, Lihua Pharmaceutical, Medcon Biotech, and Kangda in fields including chemical pharmaceuticals, traditional Chinese medicine (TCM), in vitro diagnostics, and digital diagnostic equipment. However, significant gaps remain in various niche segments. Over the next three years, Ningbo will focus on strengthening the industrial chains for pharmaceutical intermediates, chemical active pharmaceutical ingredients (APIs), chemical drug formulations, and innovative chemical drugs. The city will adhere to a strategy that combines major high-quality generic new drugs with innovative drugs, while actively undertaking the production of high-end APIs from Europe and the United States, particularly highly potent APIs used in anticancer and hormonal medications. Focusing on novel mechanisms and new target technologies, Ningbo will prioritize the development of new drugs, major generic drugs, and blockbuster chemically synthesized innovative drugs for the treatment of prevalent and serious conditions, including malignant tumors, cardiovascular and cerebrovascular diseases, infections caused by drug-resistant pathogens, and viral infections. Furthermore, emphasis will be placed on addressing weaknesses in the biopharmaceutical sector to promote the comprehensive development of the biomedical industry.

Future Achievements Will Elevate Ningbo to the Height of a Landmark City for Life and Health. Regarding the operation of a healthy city, Wang Ying, founder of Lishi International/Chuangxiequan, stated: “Ningbo has a very solid urban foundation, including its commerce, industry, and manufacturing sectors. In terms of the big health industry, Ningbo’s development prospects are highly promising. The big health industry encompasses numerous specialized segments. The most critical aspect of operating a healthy city is to have precise positioning and development planning. Only after determining this positioning should supporting facilities for urban development be allocated.”

Mr. Wang Ying, Founder of Lishiji International/Chuangxiejiequan

The formulation of the “Policy Opinions on Accelerating the Development of the Biopharmaceutical Industry in Ningbo” has provided new impetus for the growth of Ningbo’s biopharmaceutical sector, while more precisely fostering the development of its weaker segments. Moving forward, Ningbo will seize emerging opportunities in the healthcare industry under the new landscape, empower the construction of a Healthy City, and build a high-quality platform to propel the rapid advancement of the life sciences industry in Ningbo.

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