"Yangtze River Delta" VS "Pearl River Delta": Comparison of drug R&D capabilities, six highlights in the future!

According to the 2020 GDP performance, Guangdong Province (including the "Pearl River Delta") continues to rank first with 11 trillion yuan, which is the same as the ranking in 2015 at the beginning of the "13th Five-Year Plan" period
.

The "Yangtze River Delta" occupies three seats in the TOP10, Jiangsu Province ranks second with 10 trillion yuan, Zhejiang Province ranks fourth (6.

So, what is the comparison of drug R&D strength between the "Yangtze River Delta" and the "Pearl River Delta"?

status quo

"Yangtze River Delta" temporarily leads

0 1Head enterprise PK

The comparison between the "Yangtze River Delta" and the "Pearl River Delta" is actually Guangdong Province's own efforts against the three provinces (cities)
.

According to the data of China's top 100 pharmaceutical industry in 2019, a total of 5 companies in Guangdong have entered the top 100 list, namely Guangzhou Pharmaceutical Group, Zhuhai United Laboratories, Shenzhen Dongyangguang, Livzon Pharmaceutical, and Shenzhen Xinlitai Pharmaceutical
.

For domestic companies in the "Yangtze River Delta" (excluding the headquarters of multinational pharmaceutical companies in China), Shanghai has Shanghai Pharmaceuticals (Group), Shanghai Fosun Pharmaceuticals (Group), etc.

, and Jiangsu has Jiangsu Hengrui Pharmaceuticals and Zhengda Tianqing Pharmaceutical Group.
Jiangsu Stockhausen pharmaceutical Group, Jiang Suji Chuan holding Group, Zhejiang NHU has Holdings, CONBA Group, Provincetown medicine, Holley pharmaceutical Group, Zhejiang Hisun, Zhejiang Huahai pharmaceutical and so on

In Xueqiu's Shanghai and Shenzhen stock market chemical pharmaceutical market value TOP10, on April 21, 2021, Jiangsu Hengrui in the "Yangtze River Delta" ranked first with 437.
1 billion yuan, and Zhejiang Xinhecheng ranked second and third ( 79.
114 billion yuan) and East China Pharmaceutical (78.
077 billion yuan), Betta Pharmaceuticals (40.
506 billion yuan) ranked seventh, Jiangsu Jianyou shares (36.
638 billion yuan) ranked ninth, and Jiuzhou Pharmaceutical (35.
684 billion yuan) ranked No.
Ten
.

Livzon Group and Xinlitai in the "Pearl River Delta" ranked 6th and 8th with 42.

  In terms of traditional Chinese medicine, Baiyun Mountain in the "Pearl River Delta" ranked third with 45.
3 billion yuan.
The market value of Kangmei Pharmaceutical, which had a market value of 100 billion yuan, fell to 10.
7 billion yuan.
China Resources 39 (23.
689 billion yuan) ranked seventh, and the "Yangtze River Delta" was only Jiangsu Jichuan Pharmaceutical ranked tenth with 17.
25 billion yuan
.

  

  In the field of biological products, Kangtai Biological in the "Pearl River Delta" ranked fourth with 100.
354 billion yuan, and the market value of Hongfang Kangfang Biological at 38 billion may barely squeeze into tenth
.

Fosun Pharma in the "Yangtze River Delta" ranked third with a market value of 121.

  On the whole, few chemical and biological products listed companies in Guangdong can enter the top domestic positions; in contrast, the "Yangtze River Delta" has a strong alliance
.

  

0 2     Innovative PK

  

  Products approved after the new registration management measures can be used as a reference for judging research and development capabilities.

We compare the approval status of Class 1 new drugs in the "Yangtze River Delta" and "Pearl River Delta"

  After 2017, 3 new drugs in Category 1 were approved in the "Pearl River Delta", and only 1 was approved according to the new registration classification
.

The three Guangdong companies that have been approved are not among the top 100 companies in China's pharmaceutical industry in 2019

  As for the "Yangtze River Delta", in 2020, Galley was approved for Lavidavir Hydrochloride Tablets, Simcere was approved for Edaravone and Dexcamphanol Injection Concentrate Solution, and BeiGene (Suzhou) Biologics was approved for Zebuti.
Ni Capsules, Jiangsu Hausen Pharmaceutical Co.
, Ltd.
approved Ametinib mesylate tablets
.

In terms of quantity, the number of Class 1 new drugs approved in a year in the "Yangtze River Delta" is more than that of the "Pearl River Delta" accumulated over the years
.
  

  According to the data of China's top 100 pharmaceutical industry in 2019, a total of 5 enterprises in Guangdong have entered the top 100 list
.
These five chemical drugs approved under the new registration classification in recent years are basically generic drugs
.
Livzon's ilaprazole sodium for injection was approved in 2017 in the old category 2.
It is one of the few improved and innovative drugs approved by Guangdong head pharmaceutical companies
.
In 2020, two modified drugs were approved, one is Levoornidazole Tablets from Nanjing Shenghe Pharmaceutical, and the other is Montelukast Sodium Oral Dissolving Film from Shandong Qilu
.
  

0 3    Industry Synergy PK

  

  In the "Pearl River Delta", only Guangdong is fighting; while Jiangsu Province has worked closely with provinces such as Shanghai and Zhejiang to form industrial synergies
.
  

  After many years of accumulation in the export of APIs in Zhejiang Province, individual API products have already gained cost advantages in the world
.
  

  Most of the enterprises in Guangdong Province started from domestic circulation.
Before the reform of pharmaceutical circulation, they survived very well on policy dividends, so there was no incentive to actively deploy APIs
.
In addition, provinces near Guangdong, such as Fujian, have not developed the import and export business of raw materials like Zhejiang
.
  

  In fact, the entire "Pearl River Delta" has not established a good foundation for APIs
.
The dilemma of APIs is also reflected in CRO institutions, and Guangdong does not have as many CROs as the "Yangtze River Delta"
.
  

future

"Pearl River Delta" is ready to go

 

  In order to change the status quo of the "Pearl River Delta", various parts of Guangdong have been carrying out policy support work, with relevant policies focusing on districts (especially industrial parks)
.
  

  Take Guangzhou as an example
.
In March 2021, Huangpu District and Guangzhou Development Zone issued the "Ten Articles of Guangzhou Knowledge City to Promote the High-quality Development of Biomedicine Industry" (referred to as "10 Articles of Biomedicine").
Another support policy in the field of biomedicine launched after the Measures for Promoting the Development of High-end Biopharmaceutical Industry
.
  

  Favorable policies include six aspects, which will give a huge impetus to the pharmaceutical industry in Guangzhou
.
    

0 1

High investment in fixed assets:

Good for biological drugs, high-precision medical equipment

  The construction of industrial projects that have an overall driving force and a major leading role in the development of the biomedical industry in the region will be supported in accordance with 10% to 30% of the total fixed asset investment, with a maximum of 500 million yuan for a single project
.
If the above project parties organize and carry out employee training, they will be subsidized at 50% of the actual training costs incurred, with a maximum of 3 million yuan per year for a single enterprise
.
Evaluation  

  This means that the corresponding investment is 1.
5 billion to 5 billion yuan
.
Usually such a high amount of investment is a large investment in fixed assets, and such a high amount of fixed asset investment must be a high-profit value biological product and high-tech medical device industry
.

0 2

Introduce global industry leaders:

Can the R&D center model of multinational pharmaceutical companies succeed?

  Vigorously introduce benchmark projects with strong R&D, good growth, high output, and large driving forces in the global life sciences field, to the world's top 500, global pharmaceutical and medical device industry top 50, recognized leading companies in the sub-industry, industry unicorns, etc.
Independent corporate headquarters, R&D centers, or newly established internationally renowned laboratories established in the zone by enterprises with outstanding innovation capabilities will be given up to 15 million yuan in support
.
Evaluation  

  The R&D centers of multinational pharmaceutical companies have no successful model in the "Yangtze River Delta".
Can they achieve success in the "Pearl River Delta"?

0 3

Funding innovative drug projects:

Enter the clinical stage of innovative drugs or settle in Guangzhou

  For innovative drugs or improved new drugs that have obtained clinical approval from the National Food and Drug Administration in this area and are industrialized, and invest more than 10 million yuan in domestic clinical trial research and development costs, according to the research and development progress, the highest actual investment in clinical research and development in stages 40% of the cost will be subsidized: the completion of phase I, II, and III clinical trials will be granted with a maximum of 10 million yuan, 20 million yuan, and 30 million yuan respectively, and a maximum of 100 million yuan per year for a single enterprise
.
For those who obtain a new drug certificate or registration approval, the maximum subsidy is 10 million yuan each
.
The evaluation  is expected to promote some innovative drug projects in Shenzhen, Dongguan and R&D institutions outside the "Yangtze River Delta" to complete preclinical teams to settle in Guangzhou .
0 4  
   

Support the introduction of CRO leaders:

CRO will open a branch in Guangzhou

  Accelerate the cultivation and introduction of leading contract research and development service organizations (CRO), and subsidize 90% of the actual rent for renting self-use office buildings in the district, with a maximum of 1 million yuan per year for a single enterprise; investment in fixed assets of more than 500 million yuan and If the annual operating income is more than 200 million yuan, a one-off subsidy of 20% of the R&D investment during the construction period will be given, with a maximum of 50 million yuan
.
For contract research and development service organizations (CRO) with annual operating income of more than 50 million yuan, providing services to non-associated and non-invested biomedical companies or institutions, the maximum subsidy is 5% of the actual service amount provided, and the maximum per year for a single institution 10 million yuan
.
Evaluation  
  It is expected to attract CRO companies to open branches in Guangzhou
.

0 5

Support MAH commissioned production:

Cost advantage of Guangzhou production base?

  For drug or medical device marketing license holders who entrust the production of the products they hold, it is determined that the subsidy will be 5% of the actual transaction contract value of the variety, up to 5 million yuan, and a single enterprise's annual maximum of 10 million yuan
.
Encourage leading CDMO/CMO companies to actively undertake drug production, and subsidize 20% of the actual input costs for undertaking drug production, with a maximum of 15 million yuan for each product, and a maximum of 30 million yuan per year for a single company
.
Evaluation  
  There are not many production bases in Guangzhou, and the production capacity is limited.
From the perspective of centralized procurement, Guangzhou does not necessarily have a cost advantage
.

0 6

Attract investment with funds of funds:

Guangzhou financial development benchmarks Shenzhen?

  Give full play to the guiding role of technology innovation and venture capital fund of funds, adopt government guidance and market operation methods to form a total of 10 billion yuan of funds, and focus on investing in seed and start-up technology companies
.
Up to 20 million yuan will be given to newly introduced qualified PE and VC institutions in the biomedical field
.
If the above-mentioned institutions invest in the region's seed or start-up technological innovation enterprises for more than 2 years, they will be supported at 10% of the actual investment amount, and a single institution will have a maximum of 5 million yuan per year
.
Evaluation of Guangzhou's finance has been unable to develop, and the relatively developed financial industry is Shenzhen .
Whether this policy will attract funds is worth watching.
Most funds pay more attention to taxation rather than support .