Swiss pharmaceutical giant Roche on Thursday announced plans to invest 2.04 billion yuan (about 280 million U.S. dollars) in building a new biopharmaceutical manufacturing facility in Shanghai, demonstrating the multinational company's confidence in pursuing long-term operation in China as the country keeps expanding opening up to attract foreign investors.
Established in 1994, Roche Pharmaceuticals was the first multinational company in Shanghai's Zhangjiang Hi-Tech Park and over the past three decades, the pharma company has established a complete pharma value chain including research and development, manufacturing and commercialization in China.
The company's success in achieving stable operation in the country was aided by China's efforts to enlarge its opening up to international investors, including the field of biomedicine.
In October last year, China's National Medical Products Administration released a work plan, allowing pilot zones to be set to explore the establishment of a whole-process system to regulate the segmented production of biological products.
The effort aims at helping the country's biopharmaceutical industry optimize resource allocation, integrate into the international industrial chain in an orderly manner, and achieve high-quality development.
In February this year, China issued an action plan to stabilize foreign investment in 2025, announcing it will further promote the orderly opening up of its biomedicine industry and will support qualified foreign-invested enterprises in joining the segmented production of biological products.
This means companies like Roche Pharmaceuticals can allocate their business operation across the world according to their needs, for instance, putting some sections of manufacturing in one country and others in the countries close to the markets.
Bian Xin, CEO of Roche Pharma China, said Roche's new project proves that China has been making efforts to reform its drug supervision system.
"China pursues reform and opening up and keeps aligning its standards with those used globally, which allow us to move some critical sections of our manufacturing to China instead of manufacturing completely in China. Roche's new project is not an isolated example. It stands as an example of the companies that benefit from China's efforts to reform its drug supervision system," said Bian.
The municipal government of Shanghai also helped Roche implement its new project, providing more services and giving guidance in sections like site selection and environment assessment.
"Throughout the whole process, the government helped us address problems and challenges in a practical and thoughtful manner and it also gave us some helpful guidance. As China deepens reform, expands opening up, and improves its policies, I think right now is a perfect moment to increase investment in the country," said Bian.
Swiss drugmaker enlarges operation in Shanghai as China expands opening up
Swiss drugmaker enlarges operation in Shanghai as China expands opening up
