Shanghai's science ecosystem powers pharma giants' innovation

Top pharmaceutical companies are banking on Shanghai's strong science and innovation ecosystem to further strengthen their foothold.

A complete technology innovation investment system will gradually take shape in the city, facilitating early-stage technology incubation and industrial integration.

In July, a total of 37 new incentive measures were unveiled by the city's Development and Reform Commission, Science and Technology Commission, and Finance Bureau, aimed at fostering early-stage clinical research and speed up the commercial launch of new medicines.

The measures to be valid through 2029 will give full play to government-backed investment and to offer strategic support for high-quality research and development pipelines.

As a nexus of universities, startups, incubators, and investors, Shanghai continues to attract leading players, with as many as 90 percent of the top 20 international pharmaceutical and medical device companies already setting up their China regional headquarters or R&D and production headquarters in the city.

Bayer

Bayer's inauguration of its new life science incubator in Shanghai in late September signals the German giant's vote of confidence in the long-term prospects of innovation.

The Bayer Co.Lab Shanghai located at Shanghai Innovation (SH-INNO) Park in Pudong's Zhangjiang area joins its global network of life science incubators situated in key innovation hubs, including Cambridge (Britain), Kobe (Japan) and Berlin.

It aims to offer full-chain support for residents, helping local companies improve their sci-tech innovation-sourcing capabilities in cell and gene therapies to empower local innovation.

Friedemann Janus, senior vice president of Bayer's Pharmaceuticals Division and head of Regional Business Development & Licensing, Co.Lab and Divestitures, said Bayer will assess the potential of these early-stage ideas and keep exchanging ideas to see if they have potential opportunities to work with the company.

"It is important for us to be in the right place of innovation, that means to have a presence in Shanghai," he added, noting that it's essential to connect with the local ecosystem through its global incubator network to identify early-stage game-changing innovation.

Bayer also believes the partnership is beneficial for both China's overall innovation ecosystem and for the company, aimed at empowering eight to 10 startups with focus on innovations in cell and gene therapies, oncology and new technology platforms.

AstraZeneca

AstraZeneca views the local innovation site as an important link to its global research network and earlier this year, the British-Swedish pharma company elevated Shanghai as its fifth global strategic site, alongside hubs in the United Kingdom, the United States and Sweden.

It also highly values the Chinese government's push to enhance the innovation capability in the whole industry chain.

"We have over 200 projects in our R&D pipeline (including preclinical projects) and we expect about 100 new medicines and indications to gain approval in China in the next five years," said Sharon Barr, executive vice president of BioPharmaceuticals R&D at AstraZeneca.

In the rare disease field, the firm has built a very strong R&D and commercial team in the country, with two medicines already gaining approval, and that pace is expected to accelerate in the future.

"We are very impressed with the rich academic network, the biotech ecosystem and the capabilities and talent here which are helping us to achieve our bold ambition to create transformative new medicines and the R&D China team is absolutely critical (to this)," said Gianluca Pirozzi, senior vice president and head of Development and Safety of AstraZeneca's Rare Disease unit.

The Ministry of Commerce's latest circular in early September allows foreign-invested enterprises to engage in the development and application of human stem cell, gene diagnosis, and treatment technologies in four free trade zones (Beijing, Shanghai, Guangdong and Hainan).

Pirozzi also believes this opens up many opportunities for the company and it would start new gene therapy clinical programs specifically in China with some of them even before the regular global schedule. "China can really provide a tremendous support and accelerate our clinical development programs globally," he noted.

Sanofi

French pharmaceutical company Sanofi gained approval for about two dozen innovative medicines in China ahead of schedule in the first half of this year.

Clinical trials in the country will run concurrently with up to 90 percent of the company's global new drug clinical research programs, potentially speeding up the release of China's most innovative medicines as soon as possible.

It's also stepping up collaboration with domestic partners with licensing and commercial deals.

In early September, the French firm announced an agreement with TJ Bio-phar-ma to pay 32 mil-lion euros (US$35 mil-lion) up-front for the exclusive rights of development, manufacturing, and commercialization of an antibody for oncology treatment in China.

It will share some development costs with the local company and lead product commercialization in a total deal that could be worth up to 213 million euros.