Chengdu High-tech Zone: Trial Implementation of “Ecosphere” Policy to Promote “Energy Level Transition” in Functional Area of Biomedical Industry

May 24 22:13 2019

In accordance with the important deployment of the Third Plenary Session of the Eleventh Sichuan Provincial Committee and the Thirteenth Plenary Session of the Chengdu Municipal Committee, by 2025, the scale of  medical and health industry in Chengdu will strive to break through 1 trillion yuan and become the third trillion-grade industries of Chengdu after electronic information and equipment manufacturing.

As the “main battlefield” of Chengdu pharmaceutical and health industry, and the main engine of reform and innovation, how can Chengdu High-tech Zone precisely implement the policies? Namely, the focus shall be put on realizing “the four major transformations”, i.e., to transform the traditional policies of supporting the excellent and strong companies into the construction of industrial ecology with synergy, symbiosis and adsorption, to transform the focus on the industrial pole into the focus on the upstream and downstream of the whole industry at the same time, to transform pure financial support into combination of import and integration of resources and to transform direct support into a multiplier effect by laying equal stress on leverage.

What is the effect after the policy implementation for one year? Is the policy accurate and effective? Is expected effect achieved? Therefore, our reporter conducted a visit.

Policy driven

High quality development effect appears

“Thanks to the strong support of the policy, in the  first batch of ‘4+7’ volume procurement of the country, two varieties are lucky to be shortlisted, and the market share of the winning varieties is expected to increase by more than five times,” Chen Yangqi, the head of Brilliant Pharmaceutical said.

According to statistics, since the implementation of the ecosphere policy a year ago, there are more than 500 new biological medicine enterprises in Chengdu High-tech Zone, an increase of nearly 30%. In 2018, the industrial scale exceeded 40 billion yuan, of which the revenue of the pharmaceutical industry above designated scale increased by 24% on the year-on-year basis, and the proportion of the whole city increased from 27.4% to 33.7%. Midwest China Operation and Innovation Center of Sanofi, the global pharmaceutical giant and Allergan, an international cosmetic medicine giant vied with each other in settling in Chengdu High-tech Zone to plan ahead for the future competitive commanding heights of the biomedical industry. In the ranking of comprehensive competitive power of 171 biomedical industrial parks in China, Chengdu High-tech Zone has jumped to No. 6.

Variety is the foremost

Directly focus on the core of industry competition

“In support of innovative drug research and development of enterprises, the High-tech Zone is in the forefront, unprecedentedly supporting a single variety of innovative drugs up to 30 million yuan, which strengthens the confidence of enterprises in innovative R&D of products with patented technological barriers.” Chen Yuanwei, chairman of Hinova, said, “With policy support, although the company has only been established for 6 years, HC-1119, a self-developed new drug for prostate cancer, has been conducting multicenter phase III clinical trial in the United States and China, and is expected to become the first new drug to be marketed in the United States in the western region.”

In addition, Chengdu High-tech Zone regards breed cultivation as the core of innovation cultivation, and gives strong financial support to drug and equipment with independent intellectual property rights, key innovative technology and good market expectation in phases according to milestones.

Take this opportunity to make full use of it.

Insurance shares the risk of clinical R&D

Chengdu High-tech Zone takes the lead in innovating biomedical insurance and supporting enterprises to carry out domestic and international clinical trials, which greatly reduces R& D and market risks of enterprises.

Reporters noted that in the construction of the bio-industrial ecosphere, Chengdu High-tech Zone has explored a new innovative R& D model of “government + insurance + enterprise”, encouraging enterprises to purchase related insurance types, which are subsidized by up to 70% of actual premium expenditure. To this end, Pacific Property Insurance has set up a 10 billion yuan insured amount  to build and operate the “International Biomedical Health Insurance Supermarket” to provide pre-risk prevention, in-process risk control and post-claim settlement services.

By the end of 2018, “supermarket” has successfully leveraged the insurance premium of 70 million yuan to be involved in the R& D stage of biological enterprises, effectively reducing the risk of R& D investment and increasing the enthusiasm of R& D investment.

Industry Co-governance

Promote the rapid gathering of high-end talent communities

“Previously, industrial planning, policy formulation, project introduction and so on were all solo performances of the government. After the establishment of the Federation of Industrial Experts, a bridge between the government and the market was built,” said Wang Li, President of the Bio-industry Experts Federation of Chengdu High-tech Zone and Chairman of the National Chengdu New Drug Safety Evaluation Center.

Promoted by the Federation of Experts, in 2018, Chengdu High-tech Zone successfully attracted more than 10 high-end teams including Nobel Prize winner Kornberg and Guo Dahai, an international leader of small molecule pharmaceuticals of all dosage forms, and the cooperation with academician Wei Yuquan and academician Zhang Xingdong has deepened. At present, more than 100 entrepreneurs and scientists have joined the Federation of Experts. By organizing nearly 10 large-scale professional meetings and more than 20 special salons, the Federation of Experts has improved professional services.

Green development is the solution to the problem of dealing with “dangerous waste” of enterprises.

A new start to open a new channel of high quality development To deal with the vast varieties and big difficulties in hazardous waste disposal, the ecosphere policy innovatively supports the disposal of hazardous wastes by enterprises and fully mobilizes the motivation of professional hazardous wastes disposal institutions. Rapid operation and timely disposal of hazardous wastes not only achieves sustainable and green development, but also effectively reduces our concerns for the future.

Throughout the year of policy implementation, the innovative achievements of bio-industry in Chengdu High-tech Zone from “chain” to “circle” have become increasingly clear, and the “high-tech answer sheet” of high-quality development with equal emphasis on quality and returns has been initially completed.

Chengdu High-tech Zone still has a long way to go in case it wants to build an industrial ecosphere of “Four Chains, One Community, One System”in a relatively short period of time, building a competitive “five major centers” (“International Clinical Research Service Center for Drugs and Medical Devices”, “Center for Global Production of Biotechnology Drugs”, “Sichuan Chengdu International Medical Center”, “Global New Drug R& D Outsourcing Service Trading Center” and “Global Biopharmaceutical Supply Chain Service Center”) so as to make the functions of functional areas more comprehensive, the layout more scientific, the platform more professional, and the talent more gathering. It still needs to make hard efforts and continue to struggle.

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