When businesses are seeking to enter the China market, and/or relocate to industrial parks, they often struggle with evaluating and weighing the geographic advantages and preferential policies offered by different industrial parks. Choosing the right place to go to to is crucial for the enterprise to:
Increase R&D capabilities
Identify capital support
Identify other business resources
Leverage preferential economic policies
Expedite its overall commercialization process in China
Through contacting a multitude of industrial parks and carefully examining their resources, Bridge Point Capital gathered several candidates that are ideal for domestic and overseas healthcare enterprises. In this issue, we will introduce you to the Tianfu International Bio-Town located in Chengdu, Szechuan Province.
Introduction to Chengdu
Chengdu is the capital of Szechuan province and the leading city in west China, covering over 350 million consumers in the area. In 2018, the city had a population of around 16 million and achieved a GDP of around ¥1.54 trillion (~$220 billion), ranking 8th among all Chinese cities.
Chengdu offers abundant resources for the development of the biomedical industry. Located in the city are 3 national centers for safety evaluation of new drugs (Good Laboratory Practice), 8 national bases for clinical trial (Good Clinical Practice), and the largest and the only College of American Pathologists (CAP)-certified medical laboratory center in China. Besides, the city has 596 hospitals, including 30 Class-A hospitals, and nearly 400 are private hospitals. Among these, the Western China Hospital ranks 1st nationwide in terms of R&D and 2nd in overall capability.
Introduction to Chengdu Hi-tech Zone
The Chengdu Hi-tech Zone was founded in 1988 and officially recognized as a national high-tech zone in 1991. In 2018, the area achieved a GDP of ¥188.78 billion and a public budget income of ¥18.73 billion, the average annual GDP growth is high at over 20% over the past decade. Biomedicine is one of the two major industries in the area.
Currently in the Chengdu Hi-tech Zone are 130 Fortune-500 companies, 35 public companies and 4 Unicorn Enterprises. In the space of biomedicine, the area gathers more than 1500 biopharmaceutical enterprises including Sanofi, Medtronic, Gilead, and Allergan and 41 products with sales revenue over ¥100 million. The Hi-tech Zone was ranked 6th in terms of overall competitiveness among all biomedical industrial parks by the Ministry of Science and Technology of China in 2018.
Introduction to Chengdu Tianfu International Bio-Town
In 2016, Chengdu Tianfu International Bio-Town was founded jointly by the Administrative Committee of Chengdu Hi-tech Zone and the Shuangliu District Government of Chengdu. With a total area of 44 km2, the Bio-Town sits 28 km away from downtown Chengdu and is within 30-minute drive from Chengdu’s two international airports. The zone has four major industries of focus including biomedicine, biomedical engineering, biology service, and health new economy. It aims to establish a world-class biomedical industry park with international-level competitiveness and fuels regional development. Currently, a total of 127 projects have been signed, with a total investment of over ¥100 billion.
Selected Policy for Rewards
Up to ¥300,000 subsidy can be issued as reward to a enterprise that reaches the designated scale of an annual output for the first time
Provide a one-time subsidy of 5% of the actual investment (up to ¥5 million) into the expansion and upgrade of production lines
For developing Class III medical devices that have disruptive technologies and independent intellectual property rights, phased rewards of a cumulative total of RMB 30M can be issued
For developing Class II and III medical devices that are under development and have key innovative technologies, phased rewards of a cumulative total of RMB 10M will be given
A one-time reward of RMB 1M will be granted to enterprises who newly obtained FDA, EMEA, cGMP, and other certificates and approvals
For a recently-settled enterprise, 70% of the actual rent can be subsidized, covering up to 2,000 m2 and a maximum of RMB 1M per year for 3 years
Enterprises with an annual R&D investment input over 6% will be issued with vouchers for up to RMB 5M for deducting fees generated at the service platforms in the high-tech zones
Contribute no less than RMB 1B to build a bio-industry fund with a total scale of RMB 10B, including angel funds, venture capital funds, industrial development funds, etc.
Fees generated from hosting international forums, exhibitions and other activities in the High-tech Zone will be subsidized at 70% of the actual cost for up to RMB 500,000
Fees generated from participating in various national and international events that promote scientific and economic communication will be subsided at 70% for up to RMB 1M per year
As the Pilot Base for Medicine Technology Transfer in China, Bio-town enjoys extensive tailored incentive policies covering clinical trials support, one-stop services for regulatory approval, etc. issued by the Szechuan Provincial government.
Chengdu Tianfu International Bio-Industry Incubation Park include infrastructures with the function of office locations, conferences, residential areas, parks, etc.
Tianfu International Biomedical Engineering Industrial Accelerator has a total land coverage of ~115.33 mu. The factory space is well designed to provide adequate space for smooth production
Resources for Supporting Technology and Corporate Development:
Chengdu International Medical Center leverages international research and education resources to speed up the medical technology transfer
Global New Drug R&D Outsourcing Service Trading Center utilizes AI and big data to build lead drug screening, safety evaluation and effectiveness evaluation platforms
Drugs and Medical Devices International Clinical Research (GCP) Service Center is equipped with resources integrated from hospitals and CROs to expedite clinical research and development
Global Biotech Drug Outsourcing Production Center utilizes the resources of international pharma companies to build a global outsourcing production center and rapidly advance the scale and capacity of antibody drug production
Global Bio-medicine Supply Chain Service Center utilizes the resources of internationally renowned supply chain service providers to build Chengdu into an important node city for global bio-medicine industry supply chain