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Bioindustry Breakthrough at SSL Zone Accelerates: Bioindustry Promotion Conference Held to Build a Modern Economic System
  • 2018-11-06 16:56
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  • Publisher:DongguanSongshan Lake Sci. & Tech. Industry Park

As genomics and related technologies developed rapidly in recent years, precision medicine, biosynthesis, industrial breeding and other new development modes have experienced accelerated evolution and generalization. New types of biological economy are expected to usher in a new era of production and living for mankind.

As an important link in the Guangdong-Hong Kong-Macao Greater Bay Area and Guangzhou-Shenzhen Science and Technology Innovation Corridor, Dongguan connects both leading S&T innovation areas and is thus endowed with incomparable advantages for developing the bio-industry among other high-tech sectors. The China Spallation Neutron Source (CSNS), along with other large scientific facilities, will provide a strong support to innovative growth of the bio-industry.

To promote Songshan Lake and bioindustry in SSL Zone, Songshan Lake Bioindustry Promotion Conference grandly opened on July 31 in Songshan Lake, Dongguan. The Conference not only demonstrated the Zone’s development blueprint and immense development opportunity under the national strategy of Guangdong-Hong Kong-Macao Greater Bay Area, but also started a new round of industry investment promotion in the Zone. Moreover, the signing and inauguration of many high-quality bioindustry projects and platforms at the Conference, as well as the significant release of SSL Policy for Supporting Bioindustry Development, have quickened the establishment of a modern economic system and promotion of high-quality economic development in the Zone.

Industry Leaders and Rising Champions Go Side by Side

Songshan Lake National High-Tech Industrial Development Zone (“SSL Zone”) is Dongguan’s leading innovation zone for bioindustry concentration and has made bioindustry a priority since the very beginning. Strategic arrangement for this emerging industry started as early as 2012 when the Dongguan Municipal People’s Government formally decided to set up the Dongguan Cooperation Base for Biotechnology Industry Development on Both Sides of the Taiwan Straits in Songshan Lake. Guangdong Province formed a support leadership team headed by the Executive Vice Governor and positioned SSL Zone as the Gathering Area of Major Biotechnology Industry Projects, Core Demonstration Area for Biotechnological R&D and Industrialization and Major Platform for Foreign Cooperation in Bioindustry of Guangdong province. To do this, Dongguan also established a support leadership team headed by the Mayor and Executive Vice Mayor.

Ouyang Nanjiang, Deputy Secretary of the Zone’s Party Working Committee said that cluster of biotechnology industry in the Zone displays the following four distinctive features:

First, the trend of industry clustering is apparent. So far, 300 plus biological projects have been introduced into the Zone, covering the field of biomedicine, biomedical engineering, biological food, etc. Some of the projects are HEC, 3S Bio Inc., Zhongsheng Pharma, Lifotronic, Modern Dental Group and CapitalBio Corporation. In particular, Songshan Lake has demonstrated obvious agglomeration in the fields of medical instruments and biomedicine. With many biotechnology industrial chains being formed (such as pharmaceutical R&D industry chain, medical equipment industrial chain, TCM industrial chain, in-vitro diagnosis (IVD) industrial chain, industrial support chain for academic and research institutions and support chain for biotech venture capital industry) and the correspond multi-level multi-subject industry funds being put in place, SSL Zone has earned a reputation in China’s biological sector.

Second, the number of leading enterprises is increasing. With respect to medical equipment, 13 of the total 92 class-A medical instrument manufacturers by quality and  credit as announced by Guangdong Food and Drug Administration have either settled or are about to settle in the Zone. Among those that have located in the Zone, HEC is a leading manufacturer of medicine for curing influenza in children; 3S Bio Inc. ranked 1st in the domestic biopharmaceutical sector; Zhongsheng Pharma is one of the top 100 enterprises in China’s pharmaceutical industry; Fapon Biotech Inc. is the largest in-vitro diagnostic reagent material supplier in China; AnteMed is a leader in the domestic high-pressure imaging industry and Modern Dental is a leading global provider of denture equipment.

Third, some growth-type enterprises stand out conspicuously. While attracting industrial leaders, SSL Zone have took great pains to foster growth-type SMEs. A number of uniquely attractive enterprises in the various segments of the bioindustry is being built and put into operation. Specifically, the projects of Fapon Biotech Inc. and Hongshanhu Pharmaceutical Co., Ltd. have gone into operation while the projects of HEC, Lifotronic, AnteMed and Modern Dental are expected to be completed within this year. It’s worth mentioning that Lifotronic has won the National Prize for Progress in Science and Technology (First Prize), Boyu Regenerative Medicine has been honored as the National Key R&D Plan Program and CapitalBio Genomics has been recognized as a National-Level Demonstration Center for Application of Genetic Testing Technologies.

Last but not least, associated industries are improving steadily. We equipped the Zone with various industry supporters of over 260,000 sqm (such as the Biotechnology Cooperative Incubation Center & Industrialization Center) and introduced a number of biotechnology teaching and research institutions (such as the Institute of Dongguan - Sun Yat-Sen University, Guangdong Medical University). We established some public platforms for the bioindustry (such as the Sub Center of Guangdong Provincial Medical Equipment Testing Center) and set up a 600-million-RMB bioindustry fund and other special funds to aid the biological sector. Moreover, we offer one-station industrial chain services for biotech enterprises that range from registration, production declaration, logistics to terminal sales. A biotechnology association has also been formed to promote industrial exchanges. As well, we conducted a host of activities to boost this industry, such as financing and investment matchmaking, industrial forum, recruitment, training, exhibition participation, technical transfer and matchmaking. Thanks to these efforts, associated industries in the Zone are improving gradually and the bioindustry is maturing day after day.

Total Investment of Newly-introduced Projects Surpassed 10 billion RMB

As we stand at this new starting point, bioindustry has been listed by Dongguan city as an important part of the “four girders & eight columns” sustaining the emerging industries. The Development Plan of Dongguan City for Key Emerging Industries (2018 - 2025) explicitly proposed that life sciences and bioindustry should have a total industrial output value of 100 billion RMB by 2025.

“The Conference not only showcased our achievements in promoting investment in the bio-industry, but also indicated our resolve to promote the development of this industry. It can also be seen as a mobilization meeting.” Ouyang Nanjiang revealed that total investment of newly introduced bio-industry projects and those under construction, including the 8 projects signed on the spot, have exceeded 10 billion RMB.

The eight projects signed on the spot include the improved and new drug development & pilot test platform project of Guangdong Zhongsheng Pharmaceutical Co., Ltd., the dietary supplement production base project invested by Shanghai Ast Biotechnology Co., Ltd., the polypeptide raw materials and polypeptide preparations project invested by Shenzhen Winkey Pharmaceutical R&D Co., Ltd. and the Novo Nordisk insulin injection pen production project invested by Yulong Technology Co., Ltd.

Huang Dehong, member of the Songshan Lake Administrative Committee said that, as a key link of the Guangzhou-Shenzhen Science and Technology Innovation Corridor, SSL Zone would undertake the spillover of industrial resources from Guangzhou and Shenzhen to develop new industries. It would strive to turn itself into a leading area of innovation-driven development geared to China and the world. The projects that have been signed at the Conference, featured by high technical content, broad market prospect and good economic benefits, have injected fresh blood into the Zone to drive the innovative growth of its bioindustry.

When it comes to the Zone’s investment environment, both hardware and software, those enterprises that have settled in the Zone and gone into operation have a better understanding and are thus best qualified to speak on this question.

Fapon Biotech Inc., for instance, was one of the first pilots in Songshan Lake for Dongguan’s reform in direct location of project investment and construction. As a result, the phase one project has moved from design, acceptance inspection up to operation in less than two years, three to four years less than that of an ordinary project.

In the eyes of Liu Lili, Vice President of Fapon Biotech Inc., Songshan Lake is an ideal place to start and develop a business given its excellent hardware conditions (transportation, environment and infrastructure, etc.), steady work style and efficient governmental services.

Six Areas of Innovation to Boost Development of the Bioindustry

It is especially noteworthy that at the Bioindustry Promotion Conference, Songshan Lake released the Measures of Dongguan Songshan Lake for Management of the Special Fund for Bioindustry Development (hereinafter referred to as “the Measures”).

The efficiency with which Songshan Lake is to carry out these Measures was liked by many bio-enterprises on the spot. HEC Pharm was one of the first pharmaceutical enterprises to seek development in Songshan Lake. Speaking of the policy package just unveiled by Songshan Lake, President Tang Xinfa of HEC General Research Institute said the policy provides comprehensive support to the development of bioindustry at multiple levels. It is quite competitive even in the entire Guangdong-Hong Kong-Macao Greater Bay Area in terms of coverage and scale of support.

After the policy is implemented, Songshan Lake is likely to welcome a large number of high-quality biological enterprises in the next or three years. By then, bio-industry in the Zone would experience explosive growth, he predicted. “We are lucky to be able to grow along with top players in this industry and jointly form Dongguan’s biomedical industry landscape.”

The National-Level Demonstration Center for Application of Genetic Testing Technologies at CapitalBio Genomics was officially inaugurated after the Songshan Lake Bioindustry Promotion Conference was concluded.

Article by Huang Shaohong

■ Facts about the Policy Portfolio

Excerpts from the most important bioindustry policy portfolio in the history of Songshan Lake

New Medicine Registration

An enterprise will receive a one-time bonus of 2 million RMB, 3 million RMB and 5 million RMB for obtaining a New Product Registration Certificate for National Category I Chemical Medicine, New Product Registration Certificate for National Category I TCM (Natural Medicine) and New Product Registration Certificate for Biological Products (mainly including Category I-III therapeutic biological products and Category I-II preventive biological products) respectively. An enterprise will receive a bonus of 1 million RMB for each of the other New Product Registration Certificates obtained.

Quality and Efficacy Consistency Evaluation of Generic Medicine

For each type of medicine passing the consistency evaluation, relevant enterprise will receive a one-time subsidy of 1 million RMB up to a max. of 5 million RMB (inclusive) a year. Each of the first three enterprises to pass the quality and efficacy consistency evaluation of generic medicine for the same product type will receive a one-time bonus of 500,000 RMB.

Any type of medicine that is identified by the State Food and Drug Administration as a reference listed drug (RLD) will be given a one-time bonus of 2 million RMB.

R&D and Industrialization of Medical Devices

The policy encourages enterprises to research and develop medical devices and industrialize them in Songshan Lake. Bonus or subsidiary will be given based on the type of the medical device and achievements at various stages of the R&D process:

An enterprise will receive a bonus or subsidy as below for developing Category II or III medical devices and obtaining a product registration & declaration acceptance number for the same:

For Category II medical devices, the subsidy will be 500,000 RMB for each item (product of the same type but not the same specification will be regarded as one item, the same below). In case of in-vitro diagnostic reagents, the subsidy for each item will be 100,000 RMB.

For Category III medical devices, the subsidy will be 2 million RMB for each item for implantable medical devices, 300,000 RMB for each item for in-vitro diagnostic reagent, and 1.2 million RMB for each item for other types.

For innovative medical devices, an additional subsidy of 500,000 RMB will be given.

The enterprise will be rewarded an additional 500,000 RMB if the declared product is granted a Category II Medical Device Registration Certificate or 1.2 million RMB if granted a Category III Medical Device Registration Certificate. In case of in-vitro diagnostic reagents, the reward will be 100,000 RMB and 200,000 RMB respectively.

The policy encourages the transfer of Category II and Category III Medical Device Registration Certificates from outside Dongguan to Songshan Lake for the purpose of industrialization. An enterprise that has successfully made such transfer and re-obtained a Category II and Category III Medical Device Registration Certificates will be given a bonus of 300,000 RMB and 800,000 RMB respectively for each item. In case of in-vitro diagnostic reagents, the bonus will be 100,000 RMB and 200,000 RMB respectively.

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