Biological and Pharmaceutical Industry Cluster

With rapid development of economy, people's living standard is gradually increasing. So biological and pharmaceutical industrial will become one of the most promising industries in 21 st century.

1. Analysis of existing circumstance for biological and pharmaceutical industry in Yangzhou City

The general scale of pharmaceutical industry in our city is not so big enough and biological industry is now at start-up stage. By the end of 2003, there were altogether over 200 biological and pharmaceutical enterprises (among which there were 20 enterprises with large-scope production capacity), which had reached gross industrial output at current price of nearly 1.7 billion Yuan. These enterprises include such special departments as Chinese and western medicine, chemical feedstock and medical intermediate, medical appliance, disposable medical consuming goods, vaccine used for domestic animals and birds and so on.

1). Medicine production

There are 14 medicine production enterprises with large-scope production capacity, which finished gross industrial output at current price of 770 million Yuan in 2003. The backbone enterprises include: Jiangsu Lianhuan Pharmaceutical Co. Ltd., Zhongbao Medicine, Yiyang Medicine, the Third Pharmaceutical Limited Company and so on.

Jiangsu Lianhuan Pharmaceutical Group consists of Jiangsu Lianhuan Pharmaceutical Co. Ltd. (whose stock came into market in 2003), Yangzhou Medicine Co. Ltd. and so on. The group mainly engages in research, production and sales of chemical medicine, bioengineering medicine and genetic engineering medicine. It has total assets of 589 million Yuan with 1,500 employees, among which there are 550 various kinds of professional technicians. The group has built a pharmacy technical center of provincial level, a post-doctor technological innovation center and a cardiovascular drug technical center. The group has successively developed more than 20 kinds of new medicines such as Epristeride, which is a national first-class medicine, Terfenadine and Prasterone Sodium, which are national second-class medicines, and Guaifenesin Pseudoephedrine Hydrochloride and Dextromethorphanhydrobromide Capsules (Lianhuan) and Felodipine (Lianhuan Er'ding), Fleroxacin injection (Nore), Cetirizine Hydrochloride (Lianshuang), Simvastatin (Zhengzhi) and so on. The quality of five kinds of newly-invented medicines including hydrocortisone has passed the examination and certification of American Food and Drug Administration. The production of contraceptive used for women such as levonorgestrel and norgestrel amounts to more than 50% of national total production. The group is the national famous production base in steroids hormone medicine, anti-carcinogen and anti-tumor drugs drugs, and cardio-/cerebrovascular and anti-histamine drugs.

2). Medical intermediate

There are more than 100 medical intermediate production enterprises scattering in each City (County or District) particularly in Huicun Town of Jiangdu City. In 2003, they finished gross industrial output at current price of about 400 million Yuan. The backbone enterprises include: Yangzhou Tengda Chemical Plant, Yangzhou Tianchen Fine Chemical Co. Ltd., Jiangsu Rixin Industrial Group Co. Ltd., Baoying County Dayou Chemicals Manufactureing Company, Jiangdu Zhoulong Group and so on.

Huicun Town of Jiangdu City is famous as “Hometown of chemical industry”. There are over 80 different chemical enterprises with 5000 employees. In 2003, its production value amounted to 400 million Yuan. Its main products are medical intermediate, pesticide intermediate, chemical additive, compounding chemicals and so on. Its backbone enterprises include: Jiangdu Haichen Chemical Co. Ltd., Jiangdu Xinghai Chemical Co. Ltd., Jiangdu Medical Additive Factory and Jiangdu Huanyu Medicine and Chemical Co. Ltd.

3). Biological engineering

Biological engineering in the city still remains in start-up stage. These research and development institutions and experimental plants are mainly set up from the support of Yangzhou University . The backbone enterprises include: Yangda Lianhuan, Weike Biology , Jiangsu Rundong, Baosheng Biology and so on. The main products are vaccine used for domestic animals and birds, blood serum products, urokinase, aminoacid protectant and protective aminoacid and so on. In 2003, it finished gross industrial output at current price of nearly 100 million Yuan.

Yangzhou Baosheng Biological and Chemical Co. Ltd. (locating in Tianshan Town of Gaoyou City) is now the largest production base of aminoacid protectant and protective aminoacid in China .

Lianhuan Pharmaceutical Co. Ltd. and Yangzhou University set up Yangda Lianhuan Pharmaceutical Genetic Engineering Co. Ltd. relying on “ Transgenic Animal Pharmaceutical Engineering Institution Center in Jiangsu Province ”, which is a high-tech enterprise with registered capital of 30.5 million Yuan especially engaging in research and development of genetic engineering drugs. The company has GLP and GMP experimental building and production shop, under which there are molecular cloning laboratory (key laboratory in Jiangsu Province), animal embryo engineering and genetic engineering laboratory (key laboratory in Jiangsu Province), and transgenic animal feeding and breeding laboratory.

Yangzhou University and Lianhuan Parmaceutical Co. Ltd. set up Yangzhou Weike Biological Engineering Co. Ltd. with total investment of 100 million Yuan in Hanjiang industrial park, which is a comprehensive enterprise engaging in research and development, production and sales of vaccine used for domestic animals and birds.

Jiangsu Rundong Biological Technology Co. Ltd. is a high-tech company invested by Shanghai Rundong Biological Technology Company in Guangling industrial park, which mainly engages in development and production of diagnosis and treatment products such as cardiovascular, tumor, endocrine and so on. The purpose of the company is to build the largest antibody-engineering center, the most sophisticated DNA identification center in China, cell bank storage and supply base, protein purification and polypeptide synthesis base, and biochip research and production base. The total investment of the project is about 100 million Yuan. The amount of investment at the first stage is 40 million Yuan, which is going to industrialize “cardiac troponin Ｉ (CTN Ｉ ) monoclonal antibody and fixed quantity testing kit” developed by Cardiovascular Institution of People's Hospital in Jiangsu Province. The development and production of CTN Ｉ fills in the blank of myocardial damage testing for cardiovascular diseases in China, which will bring significantly economic and social benefits.

4). Medical apparatus and instruments

There are nearly one hundred medical apparatus and instruments production enterprises with Zhonghui Group in Jiangdu City as leading enterprise. Touqiao Town in Hanjiang District has the most distinctive feature in this industry. In 2003, the annual production value of the whole industry was 800 million Yuan.

Zhonghui Group is a joint-stock enterprise engaging in production of medical apparatus and instruments and Chinese patent medicine. Its main products include B type diasonograph series, ECG monitor, mammary gland diagnosis, gynecology therapeutic apparatus, biochemical analyzer, Jingqing oral liquid, Qingzhi capsule and so on.

Touqiao Town in Hangjiang District is famous as “hometown of medical apparatus and instruments” in China . There are now 76 medical apparatus and instruments production enterprises with 4208 employees and about 4000 marketing personnel. Its main products cover hundreds of series and thousands of varieties such as disposable syringe, apparatus infusionis, drainage bag, anesthesia bag, abirritate pump and so on. In 2003, the annual production value in the whole town was nearly 500 million. The backbone enterprises include Yangzhou Yaguang Medical Apparatus and Instruments Co. Ltd., Yangzhou Great Wall Medical Apparatus and Instruments and so on. Yangzhou Yahua Biological and Technological Development Co. Ltd. is a high-tech enterprise set up by Yaguang Company in Hanjiang industrial park, which especially engages in medical memory alloy, various clamps for blood vessel and cavity of human body, research, development, production and sales of various degradable pollutant. The total investment of the project is 50 million Yuan.

2. Analysis of advantageous conditions for developing biological and pharmaceutical industry in Yangzhou City

Our city possesses many advantages for speeding the development of manufacturing industry. From the aspect of geographic environment, Yangzhou lies in the Yangtze Delta region and overlaying area of Nanjing and Shanghai metropolitan circles, therefore, it enjoys a unique regional advantage. Yangzhou is the first city in Jiangsu province to build the ring road highway, which realizes that all counties in the city are connected by highway. With the opening to traffic of Nanjing-Qidong railway and completion of Runyang Bridge , Yangzhou has formed a large traffic pattern and possessed a favorable traffic advantage with highways and railway network extending in all directions. Infrastructures in Yangzhou and its subordinated counties, cities and development zones are relatively perfect, such as electric power, water supply, sewage disposal, telegraphic communication, port and so on. They have possessed the advantage of resources. In addition, Yangzhou also possesses the following advantages for developing this industry:

1). Mechanism advantage

During the process of helping Yangzhou Pharmaceutical Factory strive for and carry out high-tech industrialization of epristeride, the Planning Commission of Yangzhou City advanced the thoughts of “taking technology and project as carriers and driving technical innovation by means of system innovation” and successfully reconstructed an old state-owned enterprise into a modern joint-stock company. In March 2003, the project successfully passed examination of the State and the stock of Lianhuan Pharmaceutical successfully came into market. In accordance with the thoughts, Lianhuan Pharmaceutical successively invested Yangda Lianhuan Pharmaceutical Genetic Engineering Co. Ltd. and Yangzhou Weike Biological Engineering Co. Ltd. Because the vast majority of enterprises of medical apparatus and instruments, chemical feedstock and medical intermediate are private enterprises, they enjoy the advantages of agile mechanism and strong capacity for later development.

2). Solid scientific research and development and industrial complement advantages

Jiangsu United Pharmaceutical Group has built a pharmacy technical center of provincial level, a post-doctor technological innovation center, a cardiovascular drug technical center, two new medicine developing institutions and a medicine science and technology development company. The group has kept good relationships on joint development with China Pharmaceutical University, Shenyang Pharmaceutical University, Shanghai Institute of Biochemistry under Chinese Academy of Sciences, Nanjing University of Chemical Technology and other scientific institutions, so the Group has abundant force in scientific research and development. It has successively developed more than 20 new medicines, which won the titles of national first, second and third class respectively. After stock of Lianhuan Pharmaceutical came into the market, it sped up the pace of assets regrouping with China Pharmaceutical University and building joint venture with Canada . A group of enterprises, such as Zhonghui Group, Yahua Science and Technology, Gaoyou Rixin , Jiangsu Rundong, combined with science and technology one after another and developed and produced many products with self-owned intellectual property rights, high science and technology content, good market prospective so as to lay a solid foundation for the next industrial development and centralization.

3). The centralized effect in profession park zone.

Weike Biology, Yahua Science and Technology and other biological and pharmaceutical enterprises settled in Hanjiang industrial park one after another. In addition, the construction of Beizhou Medical Treatment and Electric Apparatus Industrial Park in Touqiao Town will provide new space for industrial centralization.

3. Development strategy for biological and pharmaceutical industry cluster in Yangzhou City

1). Principle of development

According to national industry technology policy, regard market as guide and technology innovation as motivity, on the basis of current industrial characteristics, combine with advantages of regional resources, strengthen construction of special industrial parks, develop products with distinctive features, strengthen business invitation and capital attraction, continuously adjusts and optimizes production structure, improve contents of high-tech, promote industrial centralization, and promote the ability of survive and development and competitiveness of enterprises and regional economy.

2) Goals of industrial development

Through five to ten years' struggles, a steroids hormone medicine production base, an anti-carcinogen and anti-tumor drugs production base, and a cardio-/cerebrovascular and anti-histamine drugs, bio-engineering and medical apparatus and instruments production base should be initially taken shape. Biological and pharmaceutical industry in the whole city is planned to reach the total assets at current price of 8 billion Yuan in 2010. In addition, the ability of enterprise technical innovation should be remarkably promoted. Production and technology level and equipment level in the overall industry should be continuously increased. And degree of production concentration of its main products should be obviously enhanced.

3) Industrial distribution

According to the already formed regional distinctive features, Yangzhou economic development zone concentrates on developing steroids hormone medicine production base, anti-carcinogen and anti-tumor drugs production base, and cardio-/cerebrovascular and anti-histamine drugs production base built by Lianhuan Pharmaceutical Group; Hanjiang District concentrates on promoting the contents of high-tech of medical apparatus and instruments industry in Touqiao Town; Jiangdu City concentrates on enlarging and strengthening medical apparatus and instruments industry centering on Zhonghui Group, and adjusting and promoting science and technology contents and environmental protection level of “small chemistry industry” in Huicun so as to build Huicun into a high level medical intermediate village; Baoying County concentrates on advancing cooperation between Zhongbao Pharmaceutical and Yellow River Group to develop chemosynthesis bulk drugs and pharmaceutics drugs; Gaoyou City concentrates on developing biological products, medical intermediate and chemosynthesis drugs centering on Rixin Group and Yiyang Pharmaceutical.

4. Development highlights of biological and pharmaceutical industry cluster in Yangzhou City

Based on the current technology and production advantages in Yangzhou City, aim at market demands, follow up the development directions of biological and pharmaceutical industry at home and abroad, continuously adjust and optimize products structure, promote contents of high-tech, strengthen the force of commercial invitation and capital attraction, and enhance the ability of survive and competitiveness of enterprises and regional economy.

1) Chemosynthesis drugs

Regard Lianhuan Pharmaceutical, Zhongbao Medicine, Yiyang Medicine, the Third Pharmaceutical Limited Company as leading enterprises, regard urban development zone, Baoying and Gaoyou development zone and Jiangdu Yiling industrial park as carriers, concentrate on developing products such as steroids hormone medicine, anti-carcinogen drugs, anti-tumor, cardio-/cerebrovascular drugs, anti-histamine drugs and so on. In the future five to ten years, this industry should concentrate on carrying out projects including assets regrouping of Yangzhou Pharmaceutical Factory, steroids hormone medicine of Lianhuan Pharmaceutical, epristeride, ebastine, medicine food of Zhongbao Pharmaceutical, green industrial park and so on. The newly-added investment is 700 million Yuan with newly-added sales income of 3 billion Yuan, among which Jiangsu Lianhuan Pharmaceutical Group strives to realize the annual sales income of 3 billion Yuan and profit-before-tax of 350 million Yuan, and sets a goal to rank into the top 20 of national pharmaceutical enterprises within five years.

2). Medical apparatus and instruments

Regard Zhonghui Group, Yaguang Medical Apparatus and Instruments Company, and Great Wall Medical Apparatus and Instruments Company as leading enterprises, and build Touqiao industrial park into a city of medical apparatus and instruments with high level. In the future five to ten years, concentrate on carrying out projects of color diasonograph of Zhonghui Group, silver halide scalpel, shape memory alloy series of Yahua Biologyy, orthopaedics fastness products, degradable pollutant biomaterials and so on. The newly-added investment should reach 200 million Yuan with newly-added sales income of 800 million Yuan.

3). Biological engineering

Regard Transgenetic Engineering Research Center of Jiangsu Province , Yangda Lianhuan, Weike Biology, Rundong Biology as leading enterprises, and concentrate on developing genetic and transgenetic engineering drugs, diagnosis and treatment serial products in the field of cardiovascular drugs, tumour, internal secretion and so on, vaccine used for domestic animals and birds, and products of diagnosis reagent. In the future five to ten years, concentrate on carrying out projects of Rundong Biology, Weike Biology, and construction of transgenetic animals pharmaceutical research center. The newly-added investment should reach 300 million Yuan with newly-added sales income of 1 billion Yuan. Construction our city into the largest antibody engineering center in China, the most sophisticated DNA identification center, cell bank storage and supply base, protein purification and polypeptide synthesis base, and biochip research and production base.

4). Medical intermediates

Regard Jiangsu Rixin Group, Zhoulong Group, and Yangzhou Tianchen Fine Chemistry as leading enterprises, regard Gaoyou development zone and Jiangdu Huicun industrial park as carriers, concentrate on developing medical bulk drugs and intermediates with high contents of science and technology, low pollution and high value added. In the future five to ten years, concentrate on carrying out projects of Chitin of Rixin Group and so on. The newly-added investment should reach 500 million Yuan with newly-added sales income of 1 billion Yuan.

5. Countermeasures for developing biological and pharmaceutical industry cluster in Yangzhou City

1). Further emancipate the mind, refresh concept, and develop and promote biological and pharmaceutical industry.

After readjustment and innovation, pharmaceutical enterprises in our city have made bigger achievements than the previous condition. However, the old ideas and concepts, traditional management styles and backward marketing methods are still obstacles restricting enterprises from striding forward. When these enterprises earned little wealth, they were satisfied with the current situation and lacked of innovation, which fettering development of medical apparatus and instruments, chemical bulk drugs and medical intermediate industries. Therefore, we must further emancipate the mind, refresh concept, reinforce reform and innovation, and develop and promote biological and pharmaceutical industry

2). Speed up construction of professional park zone and promote industrial centralization and functional upgrade.

Because park zone is the carrier for industry development, only on the basis of local industrial foundation and characteristics, can the decision of industrial direction for park zone efficiently promote industrial centralization. Therefore, further strengthen the current function of industrial centralization in park zone. Each park zone should not only compete with each other, but also properly divided its work in order to develop in differentiated directions and avoid excessively repeating construction. Continuously optimize management pattern in park zone, and take the lead in forming management style and environment for new ventures, which are in line with international standards and industry developing regulations.

3). Reinforce business invitation and capital attraction, and enlarge and strengthen industrial chains

Seize opportunities of international property and capital shifting, bring advantages of good industrial environment of areas along Yangtze River, huge market potential and high quality of labor force into full play, strengthen publicizing for local distinguishing features and accessory environment of industry, reinforce attraction of foreign capital, increase the force of attracting foreign capitals, promote contents of science and technology and ability of research and development of biological and pharmaceutical industry by means of external force, and enlarge and strengthen industrial chains.

4). Strengthen technical innovation of enterprises and improve core competitiveness of industry.

Encourage and lead enterprises to increase investment on research and development, push forward enterprises to become the main bodies of technical innovation, establish market-oriented technical innovation mechanism, and carry out enterprise technical innovation project. Speed up construction of enterprise technical innovation system taking “one station and two centers” as main bodies in key enterprises and groups, guide enterprise to attach importance to intellectual property rights, especially patent application and protection of intangible assets and intellectual property rights, vigorously enhance the combination of production, study and research, further make harmonious relations among enterprises, universities and scientific institutions, promote communication and combination between enterprises and universities and scientific institutions, concentrate on pushing forward the cooperation of production, study and research among enterprises, Chinese Scientific Academy, Chinese Engineering Academy, industry research centers (institutions) and national famous universities, establish a close combination of production, study and research with capital as link, pay attention to digest and absorption of introduced technologies so as to realize a positive cycle of introduction, digest, absorption, innovation and independent development.