2021-11-05-戴德梁行-2021_上海生物医药产业生态报告（英文）_戴德梁行_16页_27mb

Summary of the Shanghai Biopharmaceutical Industry Environment Report (2021)

Core Content

This report provides an overview of the global and Chinese biopharmaceutical market, with a specific focus on Shanghai's biopharmaceutical industry. It includes a comparative analysis of biopharmaceutical industry centers both in China and abroad, a SWOT analysis of Shanghai's industry, and an outlook for the future development of the Shanghai biopharmaceutical market.

Main Points

Global Biopharmaceutical Market Overview

• The global pharmaceutical and medical device market has experienced significant growth, driven by increased healthcare awareness, rising incomes, and technological integration.
• The market is expected to continue expanding in the future due to these factors.
• The global market growth is reflected in the increasing revenue figures from 2001 to 2020 (Figure 1).

China Biopharmaceutical Market Overview

• Since the 1980s, foreign biopharmaceutical companies have entered the Chinese market, enriching the drug sales market and accelerating the development of the domestic biopharmaceutical industry.
• In recent years, more efficient drug approval procedures and the return of overseas Chinese talent have contributed to rapid growth in the industry.
• The national biopharmaceutical market size reached RMB3.57 trillion in 2021 and is projected to exceed RMB4 trillion in 2022.
• China aims to become one of the most mature and important biopharmaceutical markets globally, with continued investment in R&D.

Shanghai Biopharmaceutical Market Overview

• Since 2009, the Shanghai government has implemented continuous development plans for the biopharmaceutical industry.
• Shanghai has developed a complete industrial chain from R&D to sales and application.
• The city has formed a "1+5+X" spatial layout for biopharmaceutical industrial parks.
• By 2020, the industry size reached RMB600 billion, a six-fold increase from 2008.
• Shanghai is home to the highest concentration of foreign biopharmaceutical enterprises in China, with around 41 of the 57 world-renowned companies having a presence.
• The city also attracts many domestic biopharmaceutical companies, contributing to market development.

Biopharmaceutical Industry Centers: A Comparative Study

• Biopharmaceutical companies prioritize regional policies, scientific research environment, talent pool, and industrial aggregation.
• Shanghai has significant advantages in these areas, especially in policy support and R&D investment.
• Shanghai's R&D investment in 2020 was RMB8.7 billion, the highest among Chinese cities.
• Compared to other cities like Beijing, Guangzhou, and Shenzhen, Shanghai's R&D investment is notably higher.
• Shanghai's financial incentives for R&D and clinical trials are among the most generous in China.

SWOT Analysis on Shanghai's Biopharmaceutical Industry

Strengths

• High concentration of leading biopharmaceutical and innovative enterprises.
• Strong clinical research capability, with 6 National Clinical Medical Research Centers and 1 National Clinical Medical Center.
• Complete and large-scale industrial chain with many global/national enterprises.
• Superior financing environment, especially for the biopharmaceutical sector.

Weaknesses

• Lack of production bases for active pharmaceutical ingredients (APIs).
• Higher industrial land prices compared to other Chinese cities.

Opportunities

• Favorable policy environment, including pilot programs for reform and innovation.
• Effective control of the COVID-19 epidemic, creating a stable business environment.
• Technological opportunities in 5G, 6G, and AI, combined with a concentration of tech companies and talent in Shanghai.

Threats

• Intense competition from other cities in China, such as Beijing, Guangzhou, and Shenzhen, which are also investing heavily in biopharmaceutical fields.
• Need to maintain and increase investment in genetic engineering, AI, and other emerging biopharmaceutical technologies to stay competitive.

Outlook for the Shanghai Biopharmaceutical Market

• With strong political and capital support, Shanghai will continue to promote R&D development in various biopharmaceutical sectors.
• The city aims to establish a "Made in Shanghai" brand, focusing on innovative medicines and high-end medical devices.
• Shanghai is expected to solidify its position as a world-class biopharmaceutical industry center in the future.

Key Information

• Shanghai's R&D Investment (2020): RMB8.7 billion, the highest in China.
• Shanghai's Biopharmaceutical Industry Size (2020): RMB600 billion, up from RMB103.46 billion in 2008.
• Top Biopharmaceutical Cities in China (2020 R&D Investment): Shanghai (RMB8.7 billion), Shenzhen (RMB6.08 billion), Chengdu (RMB3.95 billion), Wuhan (RMB1.16 billion), Guangzhou (RMB2.4 billion), Beijing (RMB4.8 billion).
• Global Biopharmaceutical R&D Investment (2020): Switzerland (US$2.3 billion), Boston (US$12.9 billion), San Francisco Bay Area (US$8.1 billion).
• Foreign Biopharmaceutical Presence in Shanghai: 70% of the world's top 10 CXO companies have operations in Shanghai.
• Overseas Chinese Firms in Shanghai: Half of the world's top 10 CXO companies are Chinese, and half are American.

Contact Information

Business Contacts

• Kelvin Li
  Managing Director, East China
  kelvin.qw.li@cushwake.com

• Jonathan Wei
  Managing Director, Head of Project and Occupier Services China
  jonathan.cy.wei@cushwake.com

• Tony Su
  Managing Director, Head of Industrial Property Services China
  tony.zy.su@cushwake.com

Research Contacts

• James Shepherd
  Managing Director, Head of Business Development Services, Greater China
  james.shepherd@cushwake.com

• Shaun Brodie
  Senior Director, East China & Greater China Content
  shaun.fv.brodie@cushwake.com

• Sabrina Wei
  Senior Associate Director, Head of Research, North China
  sabrina.d.wei@cushwake.com

• XiaoDuan Zhang
  Senior Director, Head of Business Development Services, South China
  xiaoduan.zhang@cushwake.com

• Keith Chan
  Director, Head of Research, Hong Kong
  keith.chan@cushwake.com

• Wendy Hsueh
  Director, Head of Research, Taiwan
  wendy.hj.hsueh@cushwake.com

• Larry Sang
  Assistant Manager, East China Research
  larry.sang@cushwake.com

Disclaimer

This report is intended for informational purposes only and is not a complete description of the markets or developments it refers to. Information is sourced from public materials and is believed to be reliable, but not verified. Cushman & Wakefield does not guarantee the accuracy or completeness of the information and shall not be liable for any decisions made based on this report.