This year's Government Work Report has for the first time included biomedicine in the category of emerging pillar industries, and made corresponding arrangements for promoting the high-quality development of innovative drugs and medical devices. In the field of biomedicine, Shanghai has taken the lead in accelerating and actively supporting the innovative development of the entire biopharmaceutical industry chain. The pace of "going global" and "bringing in" is becoming increasingly stable, and innovative drugs and equipment from Shanghai are accelerating the construction of global competitiveness. Why can Shanghai become a hub for China's biopharmaceutical industry? Where are the new growth points in the future? In the field of innovative drugs, there is a saying called the "Double Ten Law", which means that an innovative drug usually takes 10 years of research and development cycle and 1 billion US dollars of financial investment from concept to market, with a success rate of less than 10%. Due to the extremely high threshold, "Chinese people making their own innovative drugs" was once considered unattainable. Nowadays, this wish has not only become a reality, but many innovative drugs have also begun to be exported overseas. According to data from the Shanghai Municipal Science and Technology Commission, by 2025, the scale of Shanghai's biopharmaceutical industry will exceed one trillion yuan for the first time, and the output value of the biopharmaceutical manufacturing industry will be nearly 210 billion yuan; International competitiveness continues to improve, with 48 overseas authorization and licensing transactions, a year-on-year increase of 55%, and a transaction amount of 33.761 billion US dollars, a year-on-year increase of 85%, all ranking among the top in the country. A group of well-known pharmaceutical companies are growing and expanding in Shanghai. Strolling through Zhangjiang Science City in Pudong, Shanghai, numerous enterprises such as Shanghai Junshi Biomedical Technology Co., Ltd. and Maiwei (Shanghai) Biotechnology Co., Ltd. are arranged along the street. Shanghai Fosun Pharma (Group) Co., Ltd., Xinda Biopharmaceuticals and other industry leaders are deeply rooted in Xuhui, Minhang, Jiading and other places in Shanghai, jointly building the development map of Shanghai's biopharmaceutical industry. At present, the competition for innovation in the biopharmaceutical industry is accelerating comprehensively. How can Shanghai maintain its position as the top tier of the national biopharmaceutical industry? The reporter conducted a visit and investigation. The construction of inward attraction in Shanghai's biopharmaceutical industry can lead to the formation of innovation density in the country, which cannot be achieved without patience and wisdom. In the 1990s, the domestic pharmaceutical market presented a typical "dumbbell shaped" structure: one end was domestic generic drugs with low prices; On the other hand, overseas imported drugs have strong technology, and local innovative products are almost blank. At that time, the industry reached a consensus that in order to cultivate innovative products in such an industrial structure, a complete system covering basic scientific research, talent, clinical trials, regulatory review, industrial capital, and other elements must be established first. This is not something that can be accomplished in one or two years, but requires the patience of a generation. In 1992, Shanghai announced the establishment of Zhangjiang High tech Park, which gradually formed a quality system, production standards, and clinical development concept for biopharmaceuticals locally by introducing multinational pharmaceutical companies such as Roche, Novartis, Pfizer, and AstraZeneca. A group of top scientists and engineers also came to Pudong, forming the initial skeleton of Shanghai's biopharmaceutical industry. Introducing foreign investment on one hand and leveraging it to make a difference; On the other hand, cultivate local strength and wait for the opportunity. From the Chinese Academy of Sciences Shanghai Institute of Materia Medica, Shanghai Light Source Science Center, to the National Protein Science Research (Shanghai) facility, and then to the National Major Science and Technology Infrastructure for Translational Medicine (Shanghai), Shanghai has created one of the most solid original innovation platforms in China. As of the first half of 2025, Shanghai has 64 academicians from the Chinese Academy of Sciences and Chinese Academy of Engineering in the field of biomedicine, over 320000 employees, 37 municipal level tertiary hospitals, 6 national clinical medical research centers, and 70 clinical trial institutions. The high density of clinical resources and strong research capabilities rank first in the country. Huang Yang, the research director of the healthcare industry at JPMorgan Greater China, exclaimed, "The achievements of Shanghai's biopharmaceutical industry today are the result of continuous investment, accumulation, and iteration." Huang Yang said that sustained policy support and basic research investment will attract global talents to Shanghai, thereby obtaining capital investment and forming a positive cycle of innovation. "With a good ecological environment, the industry will naturally grow." The coupling of industrial factors requires more wisdom. In the development process of the biopharmaceutical industry, Shanghai continues to innovate policies, promote resource flow, help innovation move from ideas to products, and improve conversion efficiency and reduce conversion costs through regulatory optimization. Chen Li, founder and CEO of Hualing Pharmaceutical, said, "China used to be a major country in generic drugs. In recent years, there have been more and more domestically produced innovative drugs, which have put forward new requirements for regulatory methods. Shanghai has accelerated the development of the biopharmaceutical industry through policy optimization and mechanism innovation, enhanced innovation value, and also benefited the public." The case of Huang Pharmaceutical is very representative. In 2005, Su Weiguo, who was then in charge of research and development at Hehuang Pharmaceutical, drew a small molecular structure on a napkin in a coffee shop that "starved tumor cells". This was the prototype of the anti colorectal cancer drug Fruquintinib, which was later launched globally. However, in order to continue advancing the trials, Huahuang Pharmaceutical faces great challenges: the molecular formula must be produced first and then verified through clinical trials to determine its feasibility. At that time, Hehuang Pharmaceutical was just a small enterprise with limited resources, unable to build production capacity for a "possibility". In 2016, Shanghai began implementing the Drug Marketing Authorization Holder (MAH) system, which was also one of the earliest regions in China to implement this system. In this context, drug developers can be allowed to outsource heavy asset production tasks to qualified enterprises. Fruquintinib has become one of the first pilot projects of Shanghai's MAH system. Cui Yangyang, Executive Vice President of Hehuang Pharmaceutical, said, "The MAH system allows for at least three years of early market launch of fipronil. ”In Shanghai, more than 40 pharmaceutical companies and over 30 contract manufacturing enterprises have benefited from this. In 2024, Shanghai issued the "Several Opinions on Supporting the Innovative Development of the Whole Chain of Biopharmaceutical Industry". In response to the common problem of innovative drugs "entering hospitals" reflected by enterprises, the policy proposes that within one month of the update and release of national medical insurance drugs and "new and excellent drug and equipment" products, Shanghai medical institutions will equip and use corresponding innovative drugs and equipment according to clinical needs and hospital characteristics based on the principle of "matching as much as possible"; Strengthen the assessment of innovation responsibility in municipal hospitals, and medical institutions shall not restrict the admission of innovative drugs and equipment based on factors such as the quantity of drugs used or the proportion of drugs/consumption. Thanks to this policy, the efficiency of many innovative drugs entering hospitals has been improved, boosting drug sales and expanding the influence of Chinese innovative drugs. The "flywheel effect" of the industry is gradually taking shape, and the Shanghai biopharmaceutical industry is gradually becoming more attractive. In 2000, Hengrui Pharmaceutical, which started in Lianyungang, Jiangsu, was listed on the Shanghai Stock Exchange. Most of the funds raised were invested in the construction of the Shanghai Hengrui R&D Center, marking a big step for the company from generic drugs to innovative drugs. The establishment of the R&D center has propelled the company onto the path of innovative research and development, "said He Feng, Vice President of Hengrui Pharmaceutical and CEO of Shanghai Hengrui R&D Center. Among the 24 innovative drugs listed by the company, 16 were developed by Shanghai Hengrui R&D Center. As of the first half of 2025, the sales revenue of innovative drugs has accounted for more than half of the company's drug sales revenue. Shanghai is one of the cities with the highest concentration of biopharmaceutical industry in China, with core parks such as Zhangjiang Pharmaceutical Valley and New Hongqiao International Medical Center, forming a complete chain from basic research, clinical trials to achievement transformation. The city's tertiary hospitals and national clinical trial centers are highly concentrated, providing solid clinical resource support for new drug research and development. ”Zhao Lei, General Manager of Xinda Biotech Shanghai R&D Center, said. As a hub for the domestic biopharmaceutical industry, Shanghai is accelerating its rise as a bridgehead for China's innovative drugs to go global. Founded in Suzhou, Jiangsu, Xinda Biotechnology decided in 2020 to establish its global R&D center in the Shanghai Hongqiao Qianwan Biomedical Industrial Park. Entering the park, a sense of technology and youthfulness greets you. The R&D center is currently one of the leading biopharmaceutical R&D facilities in China, with large-scale comprehensive facilities of international advanced level, including all-weather R&D centers and other supporting buildings. Zhao Lei said that it undertakes the most cutting-edge global R&D tasks of Xinda Biotechnology. Hengrui Pharmaceutical is also accelerating its pace of going abroad. Since 2020, Hengrui Pharmaceutical has completed 15 overseas authorization transactions with a potential total value exceeding 27 billion US dollars. In October 2025, the second R&D center invested and constructed by Hengrui Pharmaceutical in Shanghai, the Shanghai Innovation R&D Center, was officially put into use. It has internationally first-class molecular biology and cell biology development laboratories, equipped with gene therapy, cell therapy R&D, and pilot laboratories. The chairman of the company, Sun Feifeng, said, "This is an important step in the company's globalization strategy. In the future, the company will rely on the innovative ecosystem of Zhangjiang Pharmaceutical Valley in Shanghai to accelerate the landing of high-quality projects." Fosun Pharma, which has multiple products approved for listing overseas, also has its global headquarters in Shanghai. The CEO of the company, Zhu Jun, said, "In Shanghai, we feel very secure and can always find peers who can discuss research and development directions and coordinate resources together. It is also easy to form cultural resonance. Sichuan Baili Tianheng Pharmaceutical Co., Ltd. has gained recognition for its international cooperation with Bristol Myers Squibb in the field of antibody conjugated drugs (ADCs). Although the company has not yet entered Shanghai, Chairman Zhu Yizheng is planning to build a factory in Shanghai: "How is the business environment in Shanghai? With so many innovative pharmaceutical companies choosing to root here, it shows many problems." The clustering effect of the industry has polished the brand of Shanghai's innovative drugs globally. Huang Yang often needs to connect with international investors in his work. He said that many people come to inspect innovative drugs in China, and the first stop is usually Shanghai. "Here, you can quickly and comprehensively understand China's biopharmaceutical industry, and also conveniently communicate and negotiate with more enterprises. Not only are Chinese companies expanding outward, but global giants are also moving closer to Shanghai. According to data from the Shanghai Municipal Science and Technology Commission, as of the end of 2024, 19 out of the top 20 pharmaceutical companies and 19 out of the top 20 medical device companies globally have established headquarters or research and development centers in Shanghai. The number of drugs and devices launched for collaborative innovation and ecological innovation is an important criterion for measuring the level of industrial innovation. In October 2025, a set of figures at the Shanghai International Biomedical Industry Week Achievement Exhibition attracted attention: from 2021 to October 2025, a total of 31 domestically produced Class 1 innovative drugs were approved for market in Shanghai, accounting for 17% of the country's total; Among them, there are 4 products launched in the field of cell and gene therapy, accounting for 57% of the country's total. In addition, there are a total of 47 domestically approved Class III innovative medical devices in Shanghai, accounting for 20% of the national total. These numbers indicate that the quality of innovation in Shanghai's biopharmaceutical industry is leading the country. What are the new growth points for Shanghai's biopharmaceutical industry in the next 10 years? The answer is still: in research and development, in innovation, in long-term waiting and incubation. In Zhu Yi's view, biopharmaceutical innovation has a long-term characteristic, and "today's breakthroughs are backed by decades of data accumulation and scientific research breakthroughs". The more original the breakthrough, the more time it takes to settle down. "Only by focusing on doing the right things can we truly achieve innovation leadership." This industry characteristic also means that in order for Shanghai to become the global capital of innovative drugs, it is not only necessary to encourage innovation, but also to allow enterprises to innovate slowly. Therefore, Shanghai is building a capital system that matches patient research and development. In 2024, the Shanghai Biomedical Industry Mother Fund with a total scale of 22.5 billion yuan will be established. At the Shanghai International Biomedical Industry Week and Shanghai Biomedical Investment and Financing Summit in 2025, Lu Wen, Vice President of Shanghai State Investment Corporation, stated that as of 20