Intro of Healthcare Industrial Parks in China VI - Hangzhou Biopharma Town

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 is crucial for the enterprise to:

  • Increase R&D capabilities

  • Source talent

  • Identify capital support: both dilutive and non-dilutive

  • 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 we believe are ideal for domestic and overseas healthcare enterprises. In this issue, we will introduce you the Hangzhou Biopharma Town located in Hangzhou, Zhejiang Province.


Hangzhou


Hangzhou Qiantang New Area Location Map
  • The capital city of Zhejiang Province, ~170 km from Shanghai

  • Population: ~9.8 million (2018)

  • GDP: ¥ 1.35 trillion (~$190 billion, 2018, #10 in China); GDP per capita: ¥142,585 (~$21,000, 2018)

  • 1,003 newly landed biomedical enterprises, increased by 39.11% YOY (2018)

Hangzhou Biopharma Town in Qiantang New Area

Overview of Hangzhou Qiantang New Area:

  • Population: ~1.06 million (2018)

  • Total planned area of 531.7 km2, including 436 km2 of land and 95.7 km2 of Qiantang River water area

  • In 2018, it achieved a GDP of ¥100.8 billion, total fiscal revenue of ¥ 22.2 billion, and a total industrial output value of ¥ 291.5 billion

Introduction of Hangzhou Biopharma Town:

  • Located in the Hangzhou Economic and Technological Development Area (HEDA)

  • Planned area of 3.5 km2

  • Harbors 950 biomedical enterprises of all kinds, including 7 of the world's top 10 pharmaceutical enterprises, such as Pfizer and MSD, which accounts for nearly 50% of Hangzhou's biotech industry output value


Hangzhou Economic and Technological Development Area (HEDA)

Selected Policy Rewards

To encourage companies to invest more in R&D:

  • Provide subsidy of up to ¥10 million for a single project

  • Provide phased rewards and financial supports to promote preclinical and clinical R&D at different stages

To encourage the industrialization of innovation achievements:

  • Subsidize a proportion of the fixed assets for industrialized products that are registered as innovative class II and class III medical devices

  • Subsidize 5% of the annual transaction amount if product production is entrusted to local biomedical enterprises

To encourage enterprises to conduct more elaborate, better and stronger business:

  • Provide financial rewards to enterprises whose production and sales of drugs or medical devices reach a certain scale

  • Provide subsidies to enterprises that recently obtained overseas marketing approvals


Hangzhou Biopharma Town

Highlights

Resources and Services for Technology and Corporate Development

  • A comprehensive industrial ecology chain that encompasses every stage from laboratory and clinical research to approval and marketing

  • Outstanding talent reservoir comprising of 92 leading talents and nearly 20,000 biomedical practitioners

  • Favorable policies and multiple domestic and international platforms for technology transformation and resources sharing to address the diverse needs of enterprises

Financing

  • An annual enterprise R&D investment of more than ¥3 billion

  • 11 biomedical funds with a total of ¥5 billion and an overseas fund of $30 million in Boston to support the financing needs of enterprises