Moving Together, Envisioning the Future: The 2024 China BioMed Innovation and Investment Conference Kicks off in Guangzhou!

As industry convergence and emerging technologies continue to reshape the landscape, China’s economy is transitioning from high-speed growth driven by factor inputs to high-quality, innovation-driven development. The pharmaceutical industry is similarly shifting from following innovation to independent innovation strategy. Building multi-dimensional bridges and establishing a diverse dialogue platform that connects government, industry, academia, research, application, and investment, the 2024 China BioMed Innovation and Investment Conference (CBIIC) focuses on key challenges in innovative drugs. By leveraging the geographical advantages of the Greater Bay Area, the CBIIC aims to facilitate cooperation and investment among global biopharmaceutical entrepreneurs, scientists, and investors, jointly promoting institutional innovation, technological advancement, and industrial upgrading in China’s biopharmaceutical sector.

The opening ceremony convened representatives from over 100 organizations—including investment firms, pharmaceutical companies, and research institutions—alongside government officials, scholars, entrepreneurs, and media representatives. This cross-sector gathering fostered dynamic exchanges and delivered an intellectual feast that resonated with contemporary trends.

Bi Jingquan, Member of the Standing Committee of the 14th CPPCC, Vice-Chairman of the Committee on Economic Affairs of the 14th CPPCC National Committee, Chairman of China Center for International Economic Exchanges (CCIEE), delivered a keynote speech. He highlighted Guangzhou’s position as the core engine of the Greater Bay Area and its role as a globally influential hub for technological and industrial innovation. Bi emphasized that developing commercial insurance would contribute to establishing a market-oriented system for the biopharmaceutical industry, refining pricing mechanisms, and fostering a stable, predictable market environment characterized by market orientation, rule of law, and internationalization. He noted that developing commercial health insurance is not only crucial for building a market system but also urgent for healthcare insurance reform, addressing multi-level consumer needs while opening new channels for innovative drug development. He recommended cultivating a self-paying market, clarifying basic medical insurance payment boundaries, publicizing disease incidence rates and drug evaluation data, establishing relevant laws, and promoting the separation of management and operation in basic medical insurance. Given China’s vast territory and regional disparities in economic development, management capabilities, and medical insurance fund balances, he suggested encouraging willing regions to reform institutional barriers that hinder new quality productive forces, taking the lead in addressing medical insurance payment issues and innovative drug pricing challenges, thereby accumulating experience for nationwide reform.

Zhang Shuyang, Chairman of China Pharmaceutical Innovation and Research Development Association (PhIRDA) and President of Peking Union Medical College Hospital (PUMCH), delivered a welcome speech on behalf of the organizers. She noted that under national strategies such as Healthy China Initiative and invigorating China through science, China’s biopharmaceutical industry has entered an unprecedented “fast track” of development. As a frontline healthcare professional, she witnessed the unprecedented advancement of medical science. Our understanding of the essence of life and the mechanisms of disease has deepened; health analysis and diagnostic technologies have become more advanced; groundbreaking products for early intervention and precision treatment have emerged; and models for disease prevention and health management have grown increasingly innovative. However, she pointed out that challenges remain, including insufficient coordination among medical institutions, industry, academia, research, and investment sectors, as well as inadequate integration of innovation, industry, and application chains. In response, the 2024 CBIIC continues to build a diverse cooperation platform, aiming to promote innovation across the entire industry chain, empower original scientific research and achievement transformation, facilitate high-quality industrial development, and explore new pathways for the biopharmaceutical industry.

Wang Sheng, Member of the Party Leadership Group and Vice Governor of Guangdong Province, highlighted that the biopharmaceutical industry, as one of Guangdong’s ten strategic pillar industries, has consistently maintained its leading position nationwide. Guangdong is committed to building a strong biopharmaceutical province with high-quality development, creating a favorable business environment, and establishing a global hub for biopharmaceutical innovation and industrial development. The province aims to develop the Greater Bay Area into a key gateway connecting China’s biopharmaceutical industry with international markets. He noted that the 2024 CBIIC serves as a valuable platform to showcase and explore the development potential of Guangzhou, Guangdong, and the Greater Bay Area. He expressed hope that this event would facilitate cooperation and investment among global biopharmaceutical entrepreneurs, scientists, and investors, jointly promoting institutional innovation, technological advancement, and industrial upgrading in China’s biopharmaceutical sector.

Lai Zhihong, Vice Mayor of Guangzhou, emphasized that Guangzhou, as a national central city, international trade center, comprehensive transportation hub, and core engine of the Greater Bay Area, is both the most populous city in the Greater Bay Area and one of China’s three major medical centers. Its abundant medical resources provide vast opportunities for pharmaceutical innovation transformation and market application. Guangzhou’s biopharmaceutical industry currently ranks among the nation’s top tier, hosting over 6,500 biopharmaceutical and healthcare enterprises. The city has developed a high-end biopharmaceutical industrial pattern of “one core and two poles” centered on Guangzhou International Bio Island, which making Guangzhou’s biopharmaceutical industry cluster a national strategic emerging industry cluster. With the CBIIC being held in Guangzhou for the first time, he believes it will inject new vitality into establishing the city as a global biopharmaceutical innovation and industrial development highland. He sincerely invited domestic and international experts to contribute their insights and recommendations for Guangzhou’s pharmaceutical innovation development, working together to create and share new opportunities in the biopharmaceutical industry.

Zhu Min, Member of the Senior Expert Advisory Committee of the China Center for

International Economic Exchanges, former Deputy Managing Director of the IMF, delivered a report titled “Trump’s Trade War and Our Countermeasures.” Zhu pointed out that the world economy continues to face multiple crises, with long-brewing geopolitical tensions increasing in both intensity and frequency, adding to potential risks and vulnerabilities. Moreover, tightening financial conditions have posed growing risks to global trade and industrial production, while Trump’s election as U.S. President has reinforced the trend of “de-globalization.” Before he takes office in less than two months, Trade War 2.0 appears imminent. Expanding domestic demand and strengthening the manufacturing sector represent inevitable directions for China’s economic development. China’s economy will face significant structural changes to meet the challenges of a new historical cycle. The third plenary session of the 20th Communist Party of China (CPC) Central Committee the Resolution of the Central Committee of the Communist Party of China on Further Deepening Reform Comprehensively to Advance Chinese Modernization, calling for the improvement of mechanisms to develop new quality productive forces suited to local realities. This aims to pursue higher-quality, technology-intensive productive forces driven by innovation as the core, characterized by efficiency, intelligence, environmental friendliness, and sustainability. The biopharmaceutical sector represents a crucial component of these new quality productive forces and will be a key emerging manufacturing industry chain for future national development.

Song Ruilin, Executive President of PhIRDA, delivered a keynote speech titled “Thoughts on Establishing a Diversified Payment System for Innovative Drugs.” Song introduced that China’s global R&D contribution has steadily ranked at the forefront of the world’s second tier. However, there is a significant mismatch between its market size and its position as “the world’s second-largest market”, with China’s innovative drug market accounting for only 3% of the global share in 2021. He pointed out that China’s current innovative drug market mechanism and single-payer system are the main factors limiting the industry’s further high-quality development. He emphasized that establishing a diversified payment system centered on commercial health insurance is the only path to resolve the challenges in the development of China’s pharmaceutical industry. He proposed building win-win mechanisms between commercial insurance and healthcare, strengthening the management of the commercial insurance sector, and improving financing mechanisms. He also advocated for piloting innovative payment reforms under the premise of ensuring the security of national medical insurance funds. This would involve establishing a diversified payment system primarily supported by commercial health insurance, striking a balance between the “affordability” of generic drugs and the “accessibility” of innovative drugs. Meanwhile, separate supplementary medical assistance should be established for low-income groups. Song proposed that while industrial policies provide support for industry development, market policies are more crucial for guidance. If the proposed reforms to commercial health insurance are implemented, based on China’s current per capita income structure and assuming a 2% contribution rate comparable to that of medical insurance, the annual revenue of the national commercial health insurance fund could reach up to 3.42 trillion yuan, exceeding the total national medical insurance fund revenue in 2023. This would not only bring reasonable returns for innovation but also drive more industrial investment, forming a positive industrial cycle and promoting China’s transformation from a major pharmaceutical country to a pharmaceutical powerhouse.

Nisa Leung, Chairman of the Pharmaceutical Innovation Investment Specialty Committee of PhIRDA and  Managing Partner of Qiming Venture Partners,delivered a report titled “The Rise and Global Layout of China’s Innovative Drugs.” She reviewed her personal entrepreneurial and investment journey in the healthcare sector since 2003, sharing the establishment and investment process of Qiming Venture Partners. Since establishing Qiming’s healthcare team in 2006, she and her team have successfully invested in renowned enterprises such as Tigermed, Gan & Lee Pharmaceuticals, and Zai Lab, promoting the global layout of Chinese innovative drugs through supporting portfolio companies. She introduced that Qiming Venture Partners not only helps domestic enterprises enter international markets but has also successfully facilitated multiple cross-border transactions, with disclosed transaction amounts exceeding 11 billion dollars. Regarding new drug development, she detailed how Qiming leverages artificial intelligence (AI) technology to advance drug discovery, particularly through investments in leading companies like Schrödinger and Insilico, improving drug development efficiency and success rates. She pointed out that AI applications have significantly shortened development cycles and reduced costs, providing strong support for domestic enterprise innovation. Looking ahead, she believes that China’s innovative drugs and medical devices industry will embrace broader opportunities in the global market. Backed by a vast market, excellent talent pool, and entrepreneurs with entrepreneurial spirit, the success rate of affordable innovative drugs and medical devices development will continue to rise, truly going global and allowing different countries and regions to benefit from Chinese innovation. Meanwhile, she emphasized the importance of ESG (Environmental, Social, and Governance) concepts in corporate strategy, calling for reducing inequalities in the research, development, production, and distribution of innovative drugs and medical devices, strengthening international cooperation, and jointly promoting the development of global health.

The first panel discussion titled “Stay Committed, Break Involution, Cultivate Original Innovation” was moderated by Li Jia, Director of Shanghai Institute of Materia Medica, Chinese Academy of Sciences. The panel included Sun Piaoyang, Chairman of Jiangsu Hengrui Pharmaceuticals; Liu Dianbo, Chairman of Luye Life Sciences Group; Ding Lieming, Chairman of the Board & CEO,Betta Pharmaceuticals; Wu Xiaobin, President and Chief  Operating Officer of BeiGene;and  Wang Guangzhi,Executive Dean and Tenured Professor of the School of  Biomedical Engineering at Tsinghua University. Although China’s pharmaceutical innovation sector has entered the 2.0 era, the entire industry remains deeply mired in involution, which is closely related to industrial policies and the ecosystem environment. Facing complex international circumstances and capital “winter,” the panelists emphasized the crucial importance of actively seeking suitable development paths. They suggested viewing pharmaceutical innovation development from a global market perspective, not only targeting US and European markets but also expanding into countries along the Belt and Road Initiative to meet broad medical markets and demands. When discussing how to achieve original innovation, the panelists emphasized the importance of strengthening the translation of scientific research to clinical applications and improving drug pricing and access policies. Additionally, the panelists looked forward to the swift implementation of national policies supporting pharmaceutical innovation through commercial health insurance, driving high-quality development in innovative drugs and medical devices through market demand.

The second panel discussion titled “Maintain Patient, Build Confidence, Embrace a New Quality Future”, was moderated by Lily Zhang, Founding and Managing Partner of TTM Capital, featuring a distinguished panel of industry leaders: Chen Qiyu, Co-CEO of Fosun International; Qiu Huawei, Chairman of CR SanJiu Pharmaceuticals; Wei Dahua, Chairman of Guangzhou Industrial Investment Capital Management; Zhang Leidi, Party Secretary and General Manager of China Life Private Equity Investment; Johnson Chui, Managing Director and Head of Global Issuer Services of HKEX; and Allen Li, President of Cytiva China.

The discussion highlighted that while the investment and financing environment in pharmaceutical innovation remains challenging with limited market-oriented financing, there are promising developments on the horizon. Local industrial funds and insurance funds are positioned to play pivotal roles in this transformation. Despite the current “winter period,” the panelists noted with optimism that Chinese pharmaceutical innovators have demonstrated remarkable resilience, skillfully adapting their development strategies to meet changing circumstances. Companies are actively pursuing innovative approaches through Mergers and Acquisitions (M&A) and establishing new companies (Newco) to integrate resources and address complex market challenges. A key focus of the discussion was the concept of “patient capital.” The panelists emphasized that fostering such long-term investment requires a sophisticated understanding of pharmaceutical innovation risks, coupled with enhanced expertise in venture capital and equity investment. This approach is crucial for injecting sustained momentum and vitality into the ecosystem. Looking ahead, the panelists expressed confidence that as capital markets show signs of recovery, the strengthened partnership between investors and innovators will continue to create meaningful value in addressing critical medical needs.

The CBIIC was hosted by Feng Lan, Secretary General of PhIRDA, and Lu Xiaoti, Deputy Secretary General of PhIRDA.

Biopharmaceutical innovation is vital to public health , and the development of the pharmaceutical industry reflects and safeguards people’s pursuit of a better life. The 2024 CBIIC provided a communication platform for participants to establish in-depth collaborations with relevant government departments and renowned domestic and international institutions, effectively reflecting industry needs and supporting the innovative upgrade of China’s pharmaceutical industry. Being held in Guangzhou for the first time, the 2024 CBIIC aligned with the national top-level planning for the Guangdong-Hong Kong-Macao Greater Bay Area, focusing on addressing key challenges in R&D and commercialization processes from a local perspective. Looking ahead, the CBIIC will continue to uphold its mission of “Promote the Integration of Social Capital with Pharmaceutical Innovation and Enhance  Pharmaceutical Innovation Capabilities.” It will explore new forms of integration between the pharmaceutical industry and capital under the new circumstances, stimulate the vitality of source technology innovation among China’s pharmaceutical innovation entities, aiming to shape a high-quality pharmaceutical innovation ecosystem.