1、2024.6Greater China ResearchDIAGNOSING THE MARKET:THE CHINESE MAINLAND LIFE SCIENCES SECTORCONTENTS040506090821353638Executive SummaryIntroductionLife Sciences PolicyLife Sciences Industry Macro DriversLife Sciences Industry MovesLife Sciences Real Estate Market and OutlookKey TakeawaysBusiness Cont

2、actsResearch Contacts2 CUSHMAN&WAK E F IE L DDiagnosing the Market:The Chinese Mainland Life Sciences Sector 3The life sciences industry is continuing to evolve.The industrys development is being supported by a number of factors.Of the more important elements,four include policy,industry growth,popu

3、lation demographic dynamics,and the level of innovation.PolicyOver time,a number of important life sciences-related policies have been authorised and implemented in China.One of the more important ones is the 14th Five-Year Plan,which has promoted a solid public health system,the expansion of nation

4、al healthcare insurance,and the further development of traditional Chinese medicine(TCM).Life Sciences Industry Growth Today,when making a global comparison,Chinas biopharmaceutical industry maturity level,in terms of genetic engineering and innovative medicine research and development(R&D),has reac

5、hed or even surpassed the level seen in many other mature-market countries.Whats more,according to estimates from Frost&Sullivan,the total healthcare expenditure in China reached RMB7.6 trillion in 2021 and is expected to achieve and maintain a stable growth in the future at a CAGR of 9.5%to reach R

6、MB13.0 trillion in 2027.Population DemographicsPopulation demographics in China are moving in a favourable direction for life sciences enterprises.As people age,more often than not,an increase in the level of individual healthcare is required.According to Eastspring China,by 2035,Chinas aged populat

7、ion(aged 60 and above)is predicted to reach 409 million,representing a 28.5%share of the countrys total population.By 2050,as estimated by the UN,the proportion of ageing people in China will likely exceed that of young and working-age people.The Level of Life Sciences Research and InnovationResearc

8、h and innovation are key to cultivating new business opportunities within any industry sector within a region,including life sciences.The foundation of research and innovation can be found in universities and the graduates they produce.Also important is the amount spent on the R&D of new products,an

9、d in the case of life sciences,these products could range from new medicines to new medical devices and if these new products are truly ground-breaking,then this can lead to product innovation.China is now one of the worlds most important biopharmaceutical markets.By investing in related R&D,China i

10、s continually striving to make greater breakthroughs in the quality of medicine and medical equipment.These four aspects and more will not just support business opportunities within the life sciences industry in China but will also positively affect demand for life sciences-related commercial real e

11、state within the country and especially in the five city markets featured in our report.Executive Summary4 CUSHMAN&WAK E F IE L DChinas life sciences market is advancing at a swift clip.For companies,investors and developers,there are many themes,topics,and issues to consider.In our report we look a

12、t and diagnose four key points and they are:Life sciences-related policy in China;Life sciences industry macro drivers in China;The latest life sciences industry moves in China,and;The life sciences real estate market and outlook in and for China.IntroductionDiagnosing the Market:The Chinese Mainlan

13、d Life Sciences Sector 5Over time,a number of important life sciences-related policies have been authorised and implemented and some of the more notable ones are as follows:Among other policy initiatives,the 14th Five-Year Plan(14th FYP)has promoted:A solid public health system;The expansion of nati

14、onal healthcare insurance,and;The further development of traditional Chinese medicine(TCM).When thinking about a solid public health system,the 14th FYP has enhanced essential disease control measures and community-level public healthcare.As for the expansion of the national health insurance coverag

15、e,effort has been carried out to make sure funding for basic medical insurance is stable and sustainable medical benefits are fine-tuned by modifying payment policies for medical insurance premiums,and as lists for medical benefits are further developed.When considering TCM,support will be provided

16、to give full play to TCMs distinctive strengths in disease prevention,treatment,and rehabilitation.Additionally,a stronger supervision system will ensure TCM product quality is further advanced,and effort will be made to make sure TCM is widely promoted internationally.Major PolicyPolicy is an integ

17、ral feature enterprises need to bake into their business strategy plans,especially in the China marketplace.To secure any resulting business opportunities,it is vital that life sciences enterprises in China recurrently keep up to date with new healthcare-related policies as they are ratified and app

18、lied.In this section,our report examines:The major current policies,as well as;Selected policies enacted over the last two to three years.Life Sciences PolicyThe 14th Five-Year Plan6 CUSHMAN&WAK E F IE L DThe Healthy China 2030 plan encompasses a number of specific targets,which need to be achieved

19、between 2020 and 2030.Some of these targets include:Optimising medical organisations;Developing new industries in the health service;Developing the fitness and leisure sports industry;Promoting the development of the medicine industry.Of particular importance,the plan centres on the advancement of p

20、ublic health and disease prevention,which symbolises a considered move from treatment to prevention.On this note,the plan emphasises:Decreasing the health effects of second-hand smoking;Reducing obesity;Increasing overall physical activity,and;Preventing chronic diseases(Figure 1).Healthy China 2030

21、Source:The National Health Commission China,Cushman&Wakefield ResearchFigure 1:Healthy China 2030 PlanHeathy Literacy Mental HealthOccupational Health ProtectionChronic Respiratory Disease DietEnvironment HealthElderly Health Promotion Diabetes PreventionFitnessMaternal and Children Health Cardiovas

22、cular and Cerebrovascular Diseases Infectious and Endemic Diseases PreventionTobacco Control Primary and Secondary School Health Promotion Cancer TherapyIn terms of recently released life-sciences-related policy,of note is the 14th Five-Year Plan for the Development of the Bioeconomy which was relea

23、sed on 10 May 2022 by the National Development and Reform Commission(NDRC).This is Chinas first five-year plan for the bioeconomy,and the key points involved in the policy are as follows:Selected Recent PoliciesDiagnosing the Market:The Chinese Mainland Life Sciences Sector 7Table 1:The Chinese main

24、land Recently released life sciences-related policiesSource:Relevant government websites,Cushman&Wakefield ResearchAdditionally,in recent years,other relevant national life sciences-related policies enacted recently can be seen in Table 1 below:Gene sequencing,synthetic biology,gene diagnosis and tr

25、eatment,stem cell therapy,immune cell therapy,and traditional Chinese medicine treatment will all be a focus for innovation-led industry growth.The further use of advanced technologies such as genetic testing and biogenetics to carry out the early screening of major diseases.Further improve the prio

26、rity approval policy for drugs and medical devices and encourage the simultaneous research and development(R&D)application for new drugs at home and abroad.Encourage the further application of biological drugs and expand the use of intelligent surgical robots,digital therapeutics,particle radiothera

27、py,etc.Vigorously develop advanced diagnostic technologies and products such as high-end medical imaging.Support further innovation in the field of traditional Chinese medicine(TCM).1.The promotion of cutting-edge biotechnology innovation2.Support the development of the medical and healthcare indust

28、ry3.Improvement in market access policiesAAABCDRelease DatePublishing DepartmentName of Policy22 Dec 2021The Ministry of Industry and Information Technology,The National Development and Reform Commission and other departmentsThe 14th Five-Year Plan for the Development of the Pharmaceutical Industry3

29、0 Dec 2021The International Food and Drug AdministrationThe 14th Five-Year Plan for National Drug Safety and the Promotion of High-Quality Development27 Apr 2022The State CouncilThe 14th Five-Year Plan for National Health23 Mar 2023The Central Committee of the Communist Party of China and the State

30、CouncilOpinions on Further Improving the Medical and Health Service System1 Feb 2024The National Health Commission2024 National Medical Quality and Safety Improvement Goals2 Apr 2024The State Food and Drug AdministrationAnnouncement on Further Strengthening the Supervision and Administration of Entr

31、usted Production by Medical Device Registrants8 CUSHMAN&WAK E F IE L DFigure 2:Global pharmaceutical market revenue(2001-2023)Source:S,Cushman&Wakefield ResearchUS$BillionWhen looking at the big picture,the market for pharmaceuticals and medical devices globally has greatly expanded over recent year

32、s.Recently,this growth has been spurred by the COVID-19 pandemic and the need for associated vaccines,medicines and medical devices and equipment.Ahead,given the greater awareness of the importance of life sciences that COVID-19 has generated,the rising incomes of many people around the world,the gr

33、eater pool of life sciences scientists and professionals and the greater involvement and integration of tech,we expect the global pharmaceutical and medical device market to further grow(Figure 2).There are many industry macro drivers that influence the development direction and business growth asso

34、ciated with the life sciences industry.In this section our report focuses on the following:Life sciences industry growth in China;Chinas demographics;Life sciences-related citizen spending power in China;National health insurance coverage in China,and;The level of life sciences research and innovati

35、on in China.Life Sciences Industry Macro DriversLife Sciences Industry Growth02004006008001,0001,2001,4001,6001,800Diagnosing the Market:The Chinese Mainland Life Sciences Sector 9The top five countries for the pharma sector are the U.S.,China,Japan,Germany and France.Over recent years,China has ste

36、adily grown the size of its pharmaceutical market(Figure 3).Continued global growth in the pharmaceutical and medical device market will only have positive knock-on effects for Chinas life sciences sector as it further matures.Today,when making a global comparison,Chinas biopharmaceutical industry m

37、aturity level,in terms of genetic engineering and innovative medicine research and development(R&D),has reached or even surpassed the level seen in many other mature-market countries.For instance,such as when the National Medical Products Administration(NMPA,originally CFDA)became a member of The In

38、ternational Council for Harmonisation of Technical Requirements for Pharmaceuticals for Human Use(ICH)in 2017.Additionally,more and more commercial rights of domestic innovative medicines have been licensed out in recent years.According to Nikkei Asia,in 2023,Chinese pharmaceutical companies signed

39、more than 80 out-license deals with foreign Chinas economic growth and biopharmaceutical industry business expansion potential have not been lost on large overseas and domestic life sciences enterprises doing business in China.In the past,the majority of life sciences enterprises in China have fully

40、 understood the associated business opportunities to be had,by making sure the right R&D,manufacturing,sales,distribution and service platforms are set up in China to optimally serve the enterprise and its clients at any given time.A recent example of this is the vaccine maker Moderna Inc,which acco

41、rding to Xinhua,said it had signed a strategic cooperation agreement to work towards opportunities for it to research,develop and manufacture mRNA medicines in China.Moving forward,there is likely to be greater investment and spending channelled into disease prevention infrastructure in China.Other

42、enhancements are likely to concentrate on improved patient-centric life sciences products,equipment,systems and processes,community healthcare,healthcare insurance and life sciences technology.Ahead,patient-centric healthcare hospital and in-home medical products,equipment imaging and information te

43、chnology(IT)are likely to increase.Going forward into the near future,with artificial intelligence(AI)coming to prominence more and more within Chinas healthcare system,these products,equipment and technology will be further coupled with AI to further ensure effectual patient diagnosis in China(Figu

44、re 5).2021:RMB7.6 trillion 2027:RMB13.0 trillionFigure 3:The pharmaceutical market size by country(2022)Figure 4:The Chinese mainland Healthcare expen-diture(2021 and 2027)Source:S,Cushman&Wakefield ResearchSource:,Cushman&Wakefield Research42.6%7.6%4.5%4.0%2.8%2.4%2.3%2.0%1.9%1.9%United StatesChina

45、JapanGermanyFranceItalyUnited KingdomCanadaSpainBrazilMarket Sharepartners,a record.Of these,nearly 20 transactions were valued at more than US$1 billion each.Whats more,according to estimates from Frost&Sullivan,the total healthcare expenditure in China reached RMB7.6 trillion in 2021 and is expect

46、ed to achieve and maintain a stable growth in the future at a CAGR of 9.5%to reach RMB13.0 trillion in 2027(Figure 4).10 CUSHMAN&WAK E F IE L DOver the longer term,we expect life sciences industry growth to continue for the foreseeable future in China as not just policy and macro-economic factors co

47、me into play but also a favourable demographic make-up,increasing citizen spending power and a wider health insurance coverage are increasingly realised.Population demographics in China are moving in a favourable direction for life sciences enterprises.As people age,more often than not,an increase i

48、n the level of individual healthcare is required.According to Eastspring China,by 2035,Chinas aged population(aged 60 and above)is predicted to reach 409 million,representing a 28.5%share of the countrys total population.By 2050,as estimated by the UN,the proportion of ageing people in China will li

49、kely exceed that of young and working-age people(Figure 6).Figure 5:The Chinese mainland AI in the healthcare market(US$billion)(2022/2030)Figure 6:The Chinese mainlands age pyramid(2050)Source:insights10,Cushman&Wakefield ResearchSource:UN Population Division,Cushman&Wakefield ResearchMaleFemaleThe

50、 market is forecast to grow at a CAGR of 46.72%0.5520222030F11.91Population DemographicsPopulation:1,312,636,324Diagnosing the Market:The Chinese Mainland Life Sciences Sector 1 1Life Sciences-related Citizen Spending PowerAlong with Chinas economic growth and ageing population,its healthcare spendi

51、ng growth has also benefitted life sciences sector businesses in China.Spending as a percentage of GDP has been consecutively increasing on an annual basis in the country from 2010.According to the latest figures from the National Health Commission of the PRC,in 2022,healthcare spending in China equ

52、ated to 7.05%of the countrys GDP(Figure 7).On an individual citizen basis,we have seen disposable income in China rise as well.As disposable income rises,so individual citizens will be more willing to spend money on their healthcare and the healthcare of their families.Again,according to the latest

53、numbers from the National Health Commission of the PRC,healthcare expenditure per capita rose to RMB6,010(Figure 7).Looking ahead and according to the IQVIA Institute,by 2027,spending on medicines in China will reach a total of around US$194 billion(Figure 8).Figure 7:The Chinese mainland Healthcare

54、 spending(2012-2022)RMBSource:National Health Commission(PRC),Cushman&Wakefield ResearchUS$Billion0.0%1.0%2.0%3.0%4.0%5.0%6.0%7.0%8.0%01,0002,0003,0004,0005,0006,0007,0002012 est.2013201420152016201720182019202020212022Healthcare Expenditure Per CapitaHealthcare Expenditure-Percentage Of GDPFigure 8

55、:The Chinese mainland Medicine spending(2013-2027)ForecastSource:IQVIA Institute,Cushman&Wakefield Research2013 2014 2015 2016 2017Unbranded Products93105113123131131155157163166169175182187194200150100500OTC&OthersOriginal Branded ProductsNon-original Brands2018 2019 2020 2021 20222023 2024 2025 20

56、26 20275-YearCARs3.1%5.7%0.7%2.3%4.3%5-YearCARs5.0%10.1%1.5%2.8%8.5%5-YearCARs9.6%12.2%9.1%7.8%11.2%12 CUSHMAN&WAK E F IE L DNational Health Insurance CoverageThe Level of Life Sciences Research and InnovationGrowing national health insurance coverage will also expand business opportunities for life

57、 sciences enterprises.As part of its Healthy China 2030 policy,China hopes to also achieve health equity by 2030.Over the last 10+years,China has embarked on significant healthcare reform,with a major objective being to extend healthcare services beyond the countrys urban centres.At the beginning of

58、 this century,less than one-third of Chinas population had access to healthcare insurance.Now nearly 100%do(Figure 9).Research and innovation are key to cultivating new business opportunities within any industry sector within a region,including life sciences.The foundation of research and innovation

59、 can be found in universities and the graduates they produce.Also important is the amount spent on the R&D of new products,and in the case of life sciences,these products could range from new medicines to new medical devices and if these new products are truly ground-breaking,then this can lead to p

60、roduct innovation.Understanding this,in this section our report will cover the following:Life sciences-related colleges and universities in China,and;Life sciences research and development spending in China.Ahead,we expect the healthcare insurance market to continue to grow,both from a public expend

61、iture perspective and from a private sector expenditure perspective.Figure 9:The Chinese mainland National healthcare insurance income expenditure(2017-2023)Source:National Healthcare Security Administration,Cushman&Wakefield Research0.00.51.01.52.02.53.03.52017201820192020202120222023RMB TrillionAn

62、nual Income of Basic Medical Insurance FundsAnnual Expenditure of Basic Medical Insurance FundsDiagnosing the Market:The Chinese Mainland Life Sciences Sector 1 3The 14th Five-Year PlanAccording to Statista,in 2020,the number of public colleges and universities in China totalled 2,738.Of these,1,270

63、 were universities and 1,468 were listed higher vocational colleges.China normally distinguishes between universities,which offer four-year bachelor,master and doctorate degree programmes,and higher vocational colleges,offering practical three-year degree programmes.Apart from these two general high

64、er education institutions,students in China can also gain degrees at public adult education institutions,from online and self-learning courses provided by public institutions and at private colleges and universities.Finally,in order to create more world-class universities and further modernise the n

65、ational higher education system,China has introduced a number of initiatives,including the Double First-Class University Plan(Table 2).CityCollege/UniversityBeijingPeking UniversityTsinghua UniversityUniversity of the Chinese Academy of SciencesPeking Union Medical CollegeShanghaiFudan University Sh

66、anghai Jiaotong UniversityTongji UniversityGuangzhouSun Yat-Sen UniversityShenzhenThe Chinese University of Hong Kong,ShenzhenShenzhen Institute of Advanced Technology,Chinese Academy of Sciences Southern University of Science and TechnologyNanjingNanjing UniversityChina Pharmaceutical UniversityHan

67、gzhouZhejiang UniversityWuhanWuhan UniversityHuazhong University of Science and TechnologyHefeiUniversity of Science and Technology of ChinaChengduSichuan UniversitySuzhouNational University of Singapore(Suzhou)Research InstituteNanjing University Suzhou Graduate SchoolTable 2:The Chinese mainland S

68、elected important colleges and universities with well-established life sciences and medicine academic programmes(2024)Source:QS Ranking,Cushman&Wakefield Research14 C USHMAN&WAK E F IE L DChina is now one of the worlds most important biopharmaceutical markets.By investing in related R&D,China is con

69、tinually striving to make greater breakthroughs in the quality of medicine and medical equipment(Figure 10).Ahead,as product and tech breakthroughs are continually made in China so new avenues of business will be opened up leading to greater spending on R&D to push the life sciences innovation envel

70、ope.Research and Development SpendingFigure 10:The Chinese mainland Number of new innovative medicines/medical equipment developed(2018-2023)Source:National Medical Products Administration,Pharnex Cloud,Cushman&Wake-field Research010203040506070201820192020202120222023Domestic Innovative MedicinesIn

71、novative Medical EquipmentDiagnosing the Market:The Chinese Mainland Life Sciences Sector 1 5Chinas life sciences industry is rapidly evolving with continuous changes afoot.In this section,our report provides an update on the latest intelligence related to:Industry financing activity;Industry merger

72、s and acquisition activity;Innovation activity within the industry,and;Industry licensing activity.In 2023,according to PharmCube,there were 1,647 financing cases in China which drew a total of RMB82.92 billion in total consideration investment(Figure 11).Life Sciences Industry MovesIndustry Financi

73、ng Activity Figure 11:The Chinese mainland Life sciences financing cases and consideration(2022-2023)Source:PharmCube,Cushman&Wakefield ResearchLife Sciences Financing CasesLife Sciences Financing ConsiderationNo.of eventsRMB(billion)224137197133111190198189164109140188162119156126111153138162131112

74、12914818.418.2113.068.916.1312.1310.0313.168.947.196.9114.359.825.486.357.665.398.976.428.646.675.195.946.4-20-15-10-50510152025050100150200250300350400450Life sciences financing eventsLife sciences financing consideration16 CUSHMAN&WAK E F IE L DTop five regions for financing casesTop five regions

75、for total considerationTop five regions accounted for 80%Top five regions accounted for 81%As for regions in China,Jiangsu,Guangdong and Shanghai saw the largest number of financing cases in 2023,at 366,257 and 244,respectively.Regarding total consideration investment,Jiangsu,Shanghai and Guangdong

76、enjoyed the lions share with each region attracting RMB17.4 billion,RMB17.2 billion and RMB13.1 billion,respectively,in 2023(Table 3).In 2023,the number of M&As among global pharmaceutical companies surged compared to the previous year.Notably,the majority of the acquirees,accounting for 63%of cases

77、 and 90%of the total consideration,were located in the United States(Figure 12).As of 2023,the United States saw 88 transactions worth US$139.3 billion.In the same year,China ranked second in terms of the number of transactions,while Ireland ranked second in terms of the total consideration volume(F

78、igure 13).Industry Merger and Acquisition(M&A)ActivityTable 3:The Chinese mainland Top five regions for financing cases and total consideration(RMB billion)(2023)Figure 12:Global M&A activity The number and consideration volume for pharmaceutical companies(2019-2023)Source:PharmCube,Cushman&Wakefiel

79、d ResearchSource:MedAlpha,Cushman&Wakefield Research RankJiangsuGuangdongShanghaiZhejiangBeijing12345366257244236209Region2023RankJiangsu Shanghai Guangdong Zhejiang Beijing 1234517.4 17.2 13.19.28.3 Region2023(RMB billion)9.911.511.911.8142,065 1,170 755 914 1,555 05001,0001,5002,0002,5000246810121

80、41620192020202120222023M&A Activity Consideration Volume(USD Billion)M&A Activity NumberDiagnosing the Market:The Chinese Mainland Life Sciences Sector 1 7In 2023,according to the Medicine Evaluation Centre in China,the number of medicine registration applications continued to grow to reach 15,713 r

81、egistration applications of various types throughout the year,an increase of 28.80%year-on-year.Among these applications,40 varieties were Class 1 innovative medicines,45 varieties were for the treatment of rare diseases,and 92 varieties were related to childrens medicine products(Table 4).Figure 13

82、:Global M&A activity The number and consideration volume for pharmaceutical companies split by top activity countries(2019-2023)USD billionTable 4:The Chinese mainland Selected innovative medicines approved in 2023Source:MedAlpha,Cushman&Wakefield Research USAUSAChinaChinaCanadaCanadaIrelandUKUKSwit

83、zelandSource:2023 Drug Evaluation Report and 2023 Medical Device Registration Report from the State Food and Drug Administration,Cushman&Wakefield ResearchIndustry Innovation Activity In this section,our report takes a quick look at the latest information on:Pharmaceutical innovation,and;Medical dev

84、ice innovation.Pharmaceutical InnovationSerial NumberMedicineMarketing Authorisation HoldersType of Medicine1Aquileucel(Injection)Fosun Kite Biotechnology Co.,LtdTherapeutic biologics2Igneucel(Injection)Nanjing Reindeer Biopharmaceutical Co.,LtdTherapeutic biologics3Naki-autoleucel(Injection)Heyuan

85、Biotechnology(Tianjin)Co.,LtdTherapeutic biologics4Glutatinib(Tablet)Shanghai Haihe Pharmaceutical Research and Development Co.,LtdChemical5Socazolimab(Injection)Zhaoke(Guangzhou)Oncology Drug Co.,LtdTherapeutic biologics7080728188131011811010203040506070809010020192020202120222023134 111 51 51 139

86、0.90.83.111.88.1630.927.81.520192020202120222023Ireland020406080100120140160Ireland18 CUSHMAN&WAK E F IE L DIn 2023,the National Medical Products Administration approved a total of 61 innovative medical devices,an increase of 6 from 2022.Among these devices,many have reached the same quality standar

87、d as similar devices found elsewhere in other markets around the world,while in the case of others,they are truly the first of their kind to be found anywhere globally(Table 5).Much industry innovation in China will be conducted in dedicated life sciences parks which either are established or yet to

88、 be built.One such park is CBC Life Science Park in Shanghais Qingpu District(Figure 14).Table 5:The Chinese mainland Selected innovative medical device products approved in 2023Figure 14:CBC Life Science Park,Qingpu,Shanghai Timeline of major events/milestones reached:Source:Cushman&Wakefield Resea

89、rchSource:2023 Drug Evaluation Report and 2023 Medical Device Registration Report from the State Food and Drug Administration,Cushman&Wakefield ResearchMedical Device InnovationSerial NumberMedicineMarketing Authorisation HoldersType of Medicine1Single-photon emission and X-ray computed tomography s

90、ystemBeijing Yongxin Medical Equipment Co.,LtdMedical Device Registration Certificate 202330616282Coronary CT fractional flow reserve calculation softwareShanghai Pulse Medical Technology Co.,LtdMedical Device Registration Certificate 202332104503Single-use annular pulmonary artery radiofrequency ab

91、lation catheterWuxi Pamu Medical Technology Co.,LtdMedical Device Registration Certificate 202330120114Laparoscopic single-port surgical systemShenzhen Jingfeng Medical Technology Co.,LtdMedical Device Registration Certificate 202330117535Hip replacement surgery navigation and positioning systemHang

92、zhou Lancet Robot Co.,LtdMedical Device Registration Certificate 20233011155CBC Healthcare Infrastructure Platform was established.Project completion.CBC Life Science Park construction commenced.The main structure topped out.2020June 2024 November 2023 December 2023 Diagnosing the Market:The Chinese

93、 Mainland Life Sciences Sector 1 9According to PharmCube,during the whole of 2023,240 life sciences licensing deals were recorded in China.This represented a 50%growth in deal number when compared to the number of deals registered in 2021.Of the deals,70 included out-license deals related to Chinese

94、 companies licensing drugs and technologies to overseas companies,with the collective deal value exceeding US$35 billion.The total deal number also includes 170 in-license deals which relate to Chinese companies licensing medicines and technologies from other Chinese companies or from overseas compa

95、nies.This was a 32%increase on the deal number registered in 2021 and a 58%increase when compared to 2022(Figure 15).A number of elements have contributed to a rise in China-related licensing activity.During the last three years,there has been a brisk rise in China R&D spending,which has been rising

96、 quicker than the global average.Moreover,Chinese companies are also developing an increasing number of promising drug candidates,which many overseas companies are confident about in terms of licensing and business collaboration.Figure 15:The Chinese mainland Number of life sciences licensing dealsI

97、ndustry licensing activitySource:PharmCube,Cushman&Wakefield Research12866170424870020406080100120140160180202120222023License-in DealsLicense-out Deals20 CUSHMAN&WAK E F IE L DIn our final section of our report,we firstly examine recent major business set up/expansion activity in China before takin

98、g a deeper dive into the life sciences-related office market in five key city markets on the Chinese mainland,namely:Beijing;Shanghai;Shenzhen;Guangzhou,and;Suzhou.Life Sciences Real Estate Market and OutlookBusiness Set Up/ExpansionBEIJINGAugust 2022 Beijing InnoCare Pharma Technology Co.,Ltd.(here

99、inafter referred to as“InnoCare”)held a groundbreaking ceremony for its innovative medicine centre.With a total area of 105 acres and a total construction area of more than 100,000 sq m,the centre will also house InnoCares companys headquarters.March 2024 The groundbreaking ceremony for Hengrui Phar

100、maceuticals northern area operational headquarters and production centre was held in the Beijing Economic and Technological Development Zone(Beijing Yizhuang).This key Beijing project will cover an area of nearly 100,000 sq m and have a total construction area of about 280,000 sq m.After the complet

101、ion of the project,Hengrui Pharmaceutical will look to produce more innovative drugs in the field of cardiovascular diseases and in other medical fields.Diagnosing the Market:The Chinese Mainland Life Sciences Sector 2 1SHANGHAIJanuary 2021 The first phase of the No.92 Zhangjiang Road project locate

102、d in the core area of Zhangjiang Science City,commenced construction.The overall project covers an area of about 150,000 sq m,with a total construction area of about 300,000 sq m and a total investment of up to RMB8 billion.The overall project is expected to be completed in 2027.The project will foc

103、us on three major life sciences business areas:antibody and vaccine R&D,cell therapy R&D and gene therapy R&D,and by utilising the most advanced science and technology available,will help to build a leading biomedical innovation industry cluster in China.November 2023 Moderna,one of the worlds pharm

104、aceutical giants,as mentioned previously,started construction in Shanghai of its first pharmaceutical factory in China as well as its R&D centre and China production headquarters.The project is located in the Xinzhuang Industrial Zone.With an industrial land area of 269.58 mu and a total investment

105、of about RMB3.6 billion,the project is the largest overseas-funded investment in the field of biomedicine in China thus far.December 2023 The groundbreaking ceremony for Changchun High-tech Jinsai Pharmaceuticals Global Science and Technology Innovation Headquarters and R&D Centre was held in Shangh

106、ai International Medical Park in Zhangjiang Science City.With a total investment of about RMB1.8 billion,the project will focus on the four major business pipelines,namely:childrens health,anti-aging,anti-tumour,and womens health,and will cover a variety of product types such as preparations,special

107、 medical foods,medical devices and IVDs,in the future.June 2023 Simcere Pharmaceutical(China)R&D Centre held a groundbreaking ceremony.The project is located in the Hongqiao International Central Business District and will house four major business functions:A R&D headquarters,a regional marketing h

108、eadquarters,some functional headquarters and some living facilities.It is expected to be completed and put into use in early 2026.The Four First Tier City Markets Plus SuzhouBeijing Life Sciences Industrial Park Market Analysis(Q1 2024)Source:Cushman&Wakefield Valuation&Advisory Services,Cushman&Wak

109、efield ResearchMap 1:Beijing Main life sciences industry clustersChangpingHaidianBDADaxing22 C USHMAN&WAK E F IE L DBeijing Market BriefAccording to Beijings 14th Five-Year Plan,and specifically its high-tech industry development plan,the northern region focuses on Changping District and Haidian Dis

110、trict,and the southern region focuses on Daxing District and Beijing Economic and Technological Development Zone.Haidian and Changping in the north give full play to the scientific research advantages of Zhongguancun Science City and Molai Science City in basic research and cutting-edge technology r

111、elated to medicine and health,forming a strong support base for industrial development.On the whole,Changping and Haidian in the north have significant advantages in the field of life sciences innovation and R&D as they can draw from the resources of nearby top universities and scientific research i

112、nstitutions.This has led to many leading enterprises form home and abroad to settle in these two areas.Meanwhile,Daxing and Yizhuang in the south have established a relatively complete life sciences industry chain by housing both the R&D and production facilities of many major life sciences companie

113、s.Table 6:Beijing Market stock,vacancy and rental Table 7:Beijing Key projects that have entered the market recentlyTable 8:Beijing Representative recent tenant leasing activityNote:Only mature projects in a stable operation phase are considered.Source:Cushman&Wakefield Valuation&Advisory Services,C

114、ushman&Wakefield ResearchSource:Cushman&Wakefield Valuation&Advisory Services,Cushman&Wakefield ResearchSource:Cushman&Wakefield Valuation&Advisory Services,Cushman&Wakefield ResearchLife Sciences LocationLife Sciences Prop-erty Stock(sq m)Average Vacancy RateRental(RMB/sqm/day)Changping Zhongguancu

115、n Life Science Park349,0003.17%3.5-8Economic and Technological Develop-ment Zone623,4009.37%2.5-3.5Daxing Biological Pharmaceutical Indus-try Base692,8008.52%2-2.8ProjectLocationFloor Area(sq m)Completion DateInternational Precision Medicine Acceleration CentreChangping Zhongguancun Life Science Par

116、k10,000 2021CR Land Life Science Park(Phase II)Daxing Biological Pharmaceutical Industry Base56,700 Q3 2023CBC Life Science Park,DaxingChina Bio-medicine Park118,543 Q2 2023(Renovation completed)Shouyao Holdings New Medicine R&D and Industrialisation BaseEconomic and Technological Development Zone37

117、,400 Q4 2023Liandong U Valley High-end Bio-technology Innovation Industrial ParkEconomic and Technological Development Zone30,658 Q2 2023CompanyBusiness FieldProject(Space Leased In)Leased Area(sq m)InnoCareMedical Contract Outsource Services(CXO)Peking University Medical Industrial Park9,200BioDuro

118、 Technology(Beijing)Co.,LtdChemicals and Raw MaterialsInnovation Plaza8,800Beijing City Biopharmaceutical Technology Co.,LtdMedical Devices and ConsumablesLiandong U Valley Daxing Biomedical Science and Technology Industrial Park8,000Beijing Genetron Health Gene Technology Co.,LtdMedical Devices and

119、 ConsumablesPKUCARE Innovation Park7,000BeiGeneCXOMedical Science and Technology Centre The Life Sciences Park5,000Diagnosing the Market:The Chinese Mainland Life Sciences Sector 2 3Beijing Market Development OutlookShanghai Life Sciences Industrial Park Market Analysis(Q1 2024)According to the Impl

120、ementation Plan for Promoting the Innovation and Development of Future Industries in Beijing,Beijing will focus on the development of gene technology,cell therapy,regenerative medicine,brain science,brain-computer interface,synthetic biology and other sub-life sciences industries in Haidian,Shijings

121、han,Tongzhou,Changping,Daxing,Pinggu,Miyun,Jingkai and other regions to meet the needs of future health and medical care.Table 9:Beijing Future property supplySource:Cushman&Wakefield Valuation&Advisory Services,Cushman&Wakefield ResearchLocationKey Future Supply ProjectsChangping Zhongguancun Life

122、Science ParkLife Valley International Precision Medicine Industrial ParkEconomic and Technological Development ZoneYizhuang Life and Health Industrial Zone Biomedical Standard WorkshopDaxing Biological Pharmaceutical Industry BaseLiandong U Valley Daxing Biomedical Enterprise Port No.2 ParkMap 2:Sha

123、nghai Main life sciences industry clustersSource:Cushman&Wakefield Valuation&Advisory Services,Cushman&Wakefield ResearchNorth Shanghai Biomedical High-end Manufacturing ClusterZhangjiang Biomedical Innovation Leading Core AreaSouth Hongqiao Smart Medical Innovation Pilot ZoneThe Oriental Beauty Val

124、ley Life and Health Integration Develop-ment ZoneLingang Special Area Precision Medical Pilot Demonstration ZoneGolden Coast Modern Pharmaceutical Green Carrying Zone24 C USHMAN&WAK E F IE L DShanghai Market BriefShanghai has been focusing on the development of the biomedical industry for the past 3

125、0 years and is making every effort to build a complete industrial chain comprising R&D activity,clinical trial activity,production and sales activity and service activity.At present,Shanghai has formulated a 1+5+X biomedical industrial park planning layout strategy,which combined currently encompass

126、es a total of around 7.825 million sq m of life sciences commercial real estate space.Moreover,Shanghai has gathered more than 1,400 biomedical enterprises and more than 100 life sciences-related professional service platforms.Table 10:Shanghai Market stock,vacancy and rental Table 11:Shanghai Key p

127、rojects that have entered the market recentlyNote:Only mature projects in a stable operation phase are considered.Source:Cushman&Wakefield Valuation&Advisory Services,Cushman&Wakefield ResearchSource:Cushman&Wakefield Valuation&Advisory Services,Cushman&Wakefield ResearchLife Sciences LocationLife S

128、ciences Proper-ty Stock(sq m)Average Vacancy RateRental(RMB/sqm/day)Zhangjiang Biomedical Innovation Core Area917,000(Zhangjiang Pharma Valley Core Area)5%4.5-7.5Lingang Special Area Precision Medicine Pilot Demonstration Zone588,7006%1.6-1.7Oriental Beauty Valley Life and Health Integration Develop

129、ment Zone208,50027%1.2-1.8Jinhai an Modern Pharmaceutical Leading Area340,80010%0.8-1.1South Hongqiao Smart Medical Innovation Pilot Zone340,700(Minhang Economic and Technological Development Zone)18%1.6-2.4North Shanghai Biomedical High-end Manufacturing Cluster437,90012%0.9-1.7ProjectLocationFloor

130、 Area(sq m)Completion DateJuli Road No.1 Zhangjiang Biomedical Innovation Core Area94,109Q1 2024Lingang Life Sciences and Tech-nology Park Phase IILingang Special Area Precision Medicine Pilot Demonstration Zone308,700Q4 2019Oriental Beauty Valley Interna-tional Medical Device Industrial ParkOrienta

131、l Beauty Valley Life and Health Integration Development Zone44,757Q2 2023Area B Shanghai Jingong Bio-medical Industrial ParkJinhai an Modern Pharmaceutical Leading Area30,750Q1 2023Minhong Smart Manufacturing ParkSouth Hongqiao Smart Medical Innovation Pilot Zone133,000Q4 2022MEDI ParkNorth Shanghai

132、 Biomedical High-end Manufacturing Cluster146,000Q2 2023Diagnosing the Market:The Chinese Mainland Life Sciences Sector 2 5Table 12:Shanghai Representative recent tenant leasing activityTable 13:Shanghai Future property supplyCompanyBusiness FieldProject(Space Leased In)Leased Area(sq m)Labcorp Phar

133、maceutical R&D CentreCXOAland Business R&D Headquarters15,000Shanghai Wuxi ATU Pharmatech Co.,LtdCXOLingang Life Sciences and Technology Park Phase II15,400Maxvax BiotechnologyR&D for innovative vaccines Lingang Life Sciences and Technology Park Phase II12,700Unicar-Therapy Bio-medicine TechnologyCe

134、ll and gene therapyMEDI Park10,000Zai LabBiopharmaceuticalsJinchuang Building6,100XtalPiAI medicine discoveryFree Trade No.1 Phase I3,800LocationKey Future Supply ProjectsZhangjiang Biomedical Innovation Core Area899 Halei Road ProjectLingang New Area Precision Medicine Pilot Demonstration ZoneLinga

135、ng Life Sciences and Technology Park Phase IIIOriental Beauty Valley Life and Health Integration Development ZoneBaoji e Medicine ValleySouth Hongqiao Smart Medical Innovation Pilot ZoneDaling Bay Guosheng Health Cloud CityNorth Shanghai Biomedical High-end Manufacturing ClusterCathay Life Sciences

136、ParkLiandong U Valley Hilong Life and Health ValleyQingpu Life Sciences ParkCBC Life Science Park,Shanghai,QingpuShanghai Market Development OutlookIn its 14th Five-Year Plan,Shanghai has planned to expand diversity of high-quality life sciences industry development.In 2021,Shanghai issued Several O

137、pinions on Promoting the High Quality of the Citys Biopharmaceutical Industry and the Shanghai Municipal 14th Five-Year Plan for the Development of Traditional Chinese Medicine to further promote the comprehensive development of the industry.Additionally,given Shanghais mature industry agglomeration

138、,and the potential for further life sciences business expansion,we will continue to see more life sciences-related real estate projects enter the market in and around Shanghai in the near future.Lastly,medicine innovation research and development,high-end medical equipment,smart medical treatment,di

139、gital healthcare and the incorporation and utilisation of AI have become industry development hot spots and Shanghai aims to be a centre for these types of life sciences industry advancements over the next few years.Source:Cushman&Wakefield Valuation&Advisory Services,Cushman&Wakefield ResearchSourc

140、e:Cushman&Wakefield Valuation&Advisory Services,Cushman&Wakefield Research26 C USHMAN&WAK E F IE L DTable 14:Shenzhen Market stock,vacancy and rental Map 3:Shenzhen Main life sciences industry clustersLife Sciences LocationLife Sciences Proper-ty Stock(sq m)Average Vacancy RateRental(RMB/sqm/day)Pin

141、gshan National Biological In-dustry Base570,00026%1.3-1.8Guangming Biomedical Engineer-ing Innovation Demonstration Zone166,80010%2.3-3.7Baguang International Bio Indus-try Valley827,00020%1-1.3Shenzhen Life Sciences Industrial Park Market Analysis(Q1 2024)Shenzhen Market BriefBy the end of 2023,1,1

142、43 biomedical enterprises and 105 biomedical enterprises had settled in Pingshan.The combined total accounts for a quarter of the citys total number of biomedical production enterprises.Meanwhile,at the end of 2023,Fosun International said that it will establish its Fosun Pharma Greater Bay Area hea

143、dquarters in Pingshan.Moreover,Guangming District has now become a major centre for synthetic biology with the completion of a number of related key real estate and infrastructure projects in the district.As a result,over the past three years,80%of the newly established synthetic biology enterprises

144、 in Shenzhen have settled in Guangming District.In total,with the combined investment standing at RMB27 billion,94 synthetic biology enterprises have now gathered in the district.Furthermore,Dapeng New Area is gradually implementing the relocation of dozens of medical device companies to Dapeng,whic

145、h will help Shenzhen Baguang International Bio Valley to play a more important role in the development of the medical device industry.Ahead,Dapeng New Area will also introduce seven national high-tech enterprises and promote the registration of about 90 medical device registration certificates in th

146、e new area.GuangmingGuangming Biomedical Engineering Innovation Demonstration ZoneBaolongBaolong Biological Medicine Innovation Development Pilot ZonePingshanNational Bioindustry BaseBaguangBaguang International Bio-Valley Precision Medical Pioneer ZoneHetaoShenzhen-Hong Kong Biomedical Innovation P

147、olicy Exploration ZoneNote:Only mature projects in a stable operation phase are considered.Source:Shenzhen Biomedical Industry Cluster Development Implementation Plan(2020-2025),Cushman&Wakefield Valuation&Advisory Services,Cushman&Wakefield ResearchSource:Cushman&Wakefield Valuation&Advisory Servic

148、es,Cushman&Wakefield ResearchDiagnosing the Market:The Chinese Mainland Life Sciences Sector 27Table 15:Shenzhen Key projects that have entered the market recentlyTable 16:Shenzhen Representative recent tenant leasing activitySource:Local government websites,Cushman&Wakefield Valuation,Cushman&Wakef

149、ield ResearchProjectLocationFloor Area(sq m)Completion DateShenzhen Biomedical Innovation Industrial ParkPingshan National Biological Industry Base300,0002023Yinxing Pingshan Life and Health Industrial ParkPingshan National Biological Industry Base150,0002023SCT&Spce Life Science ParkPingshan Nation

150、al Biological Industry Base120,0002022Phase I and II of Weiguang Life Science ParkGuangming Biomedical Engineering Innovation Demonstration Zone166,8002023 Dapeng New District,Baguang International Biological HomeBaguang International Bio Industry Valley139,0002022Life Sciences Industrial Park,Dapen

151、g New District,Shenzhen International Bio ValleyBaguang International Bio Industry Valley255,0002016Marine Biological Industrial Park,Dapeng New District Shenzhen International Bio ValleyBaguang International Bio Industry Valley433,0002009CompanyBusiness FieldProject(Space Leased In)Leased Area(sq m

152、)HwaGen PharmaceuticalContract Research Organisation(CRO)and Contract Development Manufacturing Company(CDMO)Shenzhen Biomedical Innovation Industrial Park1,800Cardiolink ScienceTumour and Vascular InterventionShenzhen Biomedical Innovation Industrial ParkN/AShenzhen Pregene Biopharma Co.,LtdCell an

153、d Gene TherapyShenzhen Biomedical Innovation Industrial Park2,900Shenzhen Zeyi Cell Therapy GroupCell and Gene TherapyDapeng New District Baguang International Biological HomeN/AInnorna Co.Ltd.mRNA TechnologyWeiguang Life Science ParkN/ASource:Cushman&Wakefield Valuation&Advisory Services,Cushman&Wa

154、kefield Research28 C USHMAN&WAK E F IE L DTable 17:Shenzhen Future property supplyLocationKey Future Supply ProjectsPingshan National Biological Industry BaseShenzhen-Hong Kong Biomedical Industrial ParkPingshan National Biological Industry BasePhase II of the Biomedical Enterprise AcceleratorGuangm

155、ing Biomedical Engineering Innovation Demonstration ZoneWeiguang Life Sciences Park Phase IIIBaolong Biopharmaceutical Innovation and Development Pilot ZonePhase I of Shenzhen Bay Biological Ecological Valley ProjectShenzhen-Hong Kong Biomedical Innovation Policy Exploration ZoneInternational Biomed

156、ical Industrial ParkShenzhen Market Development OutlookThe Shenzhen-Hong Kong Biomedical Industrial Park and the second phase of the Biomedical Enterprise Accelerator in the Pingshan National Bio-Industry Base will be put into use in 2024.The entry of three large-scale professional industrial parks

157、to incubate and accelerate the development of the biomedical industry will help Shenzhen to innovate and enhance its competitiveness in various professional fields of biomedicine.Meanwhile,the third phase of Weiguang Life Sciences Park,located in the Guangming Biomedical Engineering Innovation Demon

158、stration Zone,will provide about 120,000 sq m of life sciences related-industrial space,and will help to further Shenzhens life sciences business environment offering.Lastly,two other notable life sciences-related development projects scheduled to complete in Shenzhen in the near future include the

159、first phase of Shenzhen Bay Bio-Ecological Valley in the Baolong Biopharmaceutical Innovation and Development Pilot Zone and the International Biomedical Industrial Park,located in the Shenzhen-Hong Kong Biomedical Innovation Policy Exploration Zone in the Hetao area.Again,with the completion of the

160、se two projects,Shenzhens life sciences industry base will be further expanded and strengthened.Source:Cushman&Wakefield Valuation&Advisory Services,Cushman&Wakefield ResearchDiagnosing the Market:The Chinese Mainland Life Sciences Sector 2 9Guangzhou Life Sciences Industrial Park Market Analysis(Q1

161、 2024)Map 4:Guangzhou Main life sciences industry clustersSource:Cushman&Wakefield Valuation&Advisory Services,Cushman&Wakefield ResearchGolden Coast Modern Pharmaceutical Green Carrying ZoneGuangzhou science cityGuangzhou International Bio IslandGuangzhou Market BriefThe life sciences industry is o

162、ne of the strategic emerging industries that Guangzhou is now focusing on developing.Since 2017,the Guangzhou Municipal Government and various district governments have successively issued special policies to support the development of the industry,including the Five-Year Action Plan for the Develop

163、ment of The Biopharmaceutical Industry in Guangzhou(2017-2021)issued in 2017,the Several Provisions on Accelerating the Development of the Biopharmaceutical Industry in Guangzhou(Revised)released in 2020,and the Detailed Rules for the Implementation of the Opinions on Accelerating the Development of

164、 the Biopharmaceutical Industry in Huangpu District,Guangzhou(Revised)circulated in 2022.Today,Guangzhou is home to three major life sciences business parks,namely Guangzhou International Biological Island,Guangzhou Science City and Sino-Singapore Guangzhou Knowledge City.At present,these parks have

165、 attracted nearly 5,000 life sciences-related enterprises including Zeiss,Fresenius,Sytrofan,Thermo Fisher,GE,BeiGene,InnoCare and Merck.30 C USHMAN&WAK E F IE L DTable 18:Guangzhou Market stock,vacancy and rental Table 19:Guangzhou Key projects that have entered the market recentlyTable 20:Guangzho

166、u Representative recent tenant leasing activityLife Sciences LocationLife Sciences Property Stock(sq m)Average Vacancy RateRental(RMB/sqm/day)Guangzhou International Biolog-ical Island459,0007%3.67-5Guangzhou Science City255,00015%1.6-2.5Sino-Singapore Guangzhou Knowledge City367,00050%1.32-2.0Proje

167、ctLocationFloor Area(sq m)Completion DateIHM Guangdong-Hong Kong-Ma-cao Greater Bay Area High-per-formance Medical Device Innova-tion CentreGuangzhou International Biological Island55,000Q3 2023BioGBAGuangzhou Science City117,109Q2 2023International Centre for Biomedi-cal Value InnovationSino-Singap

168、ore Guangzhou Knowledge City83,261Q3 2022SSGKCs Innovative Vaccine Pro-duction BaseSino-Singapore Guangzhou Knowledge City105,816Q3 2023Maipu Medical BuildingGuangzhou Science City54,0002022Standard Industrial Unit Phase IVGuangzhou International Biological Island122,3022021CompanyBusiness FieldProj

169、ect(Space Leased In)Leased Area(sq m)AstraZenecaBiopharmaceuticalsStandard Industrial Unit Phase IV17,000Thermo FisherN/AInternational Centre for Biomedical Value Innovation17,000WestVac BioPharmaInnovative vaccinesSSGKCs Innovative Vaccine Production Base50,000Burning Rock MedicineIn vitro diagnost

170、ics,genetic testingStandard Industrial Unit Phase IV19,000KingMed DiagnosticsInspection and testing Standard Industrial Unit Phase III28,000Source:Cushman&Wakefield Valuation&Advisory Services,Cushman&Wakefield ResearchSource:Cushman&Wakefield Valuation&Advisory Services,Cushman&Wakefield ResearchNo

171、te:Only mature projects in a stable operation phase are considered.Source:Cushman&Wakefield Valuation&Advisory Services,Cushman&Wakefield ResearchDiagnosing the Market:The Chinese Mainland Life Sciences Sector 31Table 21:Guangzhou Future property supplyGuangzhou Market Development OutlookSuzhou Life

172、 Sciences Industrial Park Market Analysis(Q1 2024)According to the 14th Five-Year Plan for the Development of Strategic Emerging Industries in Guangzhou,Guangzhou will form a 3+5+X strategic industry plan.With life sciences being promoted as one of the three emerging pillar industries,by 2025 the se

173、ctor is expected to achieve an industry output value of RMB210 billion by focusing on the development of biological medicines,modern Chinese medicines,high-end medical devices,stem cell and regenerative medicine,precision medicine,genetic testing,high-end health care and other related life sciences

174、specialisms and fields.LocationKey Future Supply ProjectsGuangzhou International Biological IslandGreater Bay Area Collaborative Innovation CentreGuangzhou Science CityBioGBA Phase IISino-Singapore Guangzhou Knowledge CityLife Sciences and Technology PortSource:Cushman&Wakefield Valuation&Advisory S

175、ervices,Cushman&Wakefield ResearchMap 5:Suzhou Main life sciences industry clustersSuzhou Industrial ParkSuzhou National Hi-Tech District Wuzhong DistrictSource:Cushman&Wakefield Valuation&Advisory Services,Cushman&Wakefield Research32 C USHMAN&WAK E F IE L DSuzhou Market BriefEstablished in 2006,Su

176、zhous modern life sciences industry base developed rapidly between 2010 to 2015.The city has now completed its 1+N biomedical business layout plan,which places Suzhou Industrial Park in the first echelon of national biomedical industry parks in China alongside Zhongguancun in Beijing and Zhangjiang

177、in Shanghai.Today,Suzhous life sciences industry mainly includes four major manufacturing fields,namely medical devices,chemical pharmaceuticals biopharmaceuticals,and modern Chinese medicine,of which medical devices and chemical pharmaceuticals are the main ones,with total production value accounti

178、ng for about 50%of the citys total industry output value.Suzhou has gathered a number of high-quality enterprises in the field of life sciences,and high-growth companies such as Innovent Biologics,CStone Pharmaceuticals,and Alphamab Oncology are all located in the city.Table 22:Suzhou Market stock,v

179、acancy and rental Table 23:Suzhou Key projects that have entered the market recentlyTable 24:Suzhou Representative recent tenant leasing activityLife Sciences LocationLife Sciences Property Stock(sq m)Average Vacan-cy RateRental(RMB/sqm/day)Suzhou Industrial Park1,938,5000%1.2-2.3Suzhou National Hi-

180、Tech District1,452,0002%1.2-1.5Wuzhong District302,0000%1.2-1.5ProjectLocationFloor Area(sq m)Completion DateSuzhou Biomedical Industrial Park Phase IV Area BSuzhou Industrial Park182,000Q1 2024Suzhou Medland Phase ISuzhou Industrial Park45,000Q3 2022Medpark Phase IVSuzhou National Hi-Tech District3

181、75,000Q4 2023Yangshan Industrial Park Phase I Bid SectionSuzhou National Hi-Tech District56,300Q1 2022Wuzhong Biomedical Industrial Park Phase IWuzhong District110,000 Q3 2022CompanyBusiness FieldProject(Space Leased In)Leased Area(sq m)BrightGene Bio-Medical Technol-ogy(Suzhou)Co.,LtdPharmaceutical

182、 raw materialsSuzhou Biomedical Industrial Park Phase I20,777 Lindmik PharmaceuticalChemical pharmaceuticalsWuzhong Biomedical Industrial Park Phase I15,250 Zai LabBiopharmaceuticalsSuzhou Biomedical Industrial Park Phase II13,200 Xadcera Pharmaceutical Technol-ogy(Suzhou)Co.,LtdChemical pharmaceuti

183、calsSuzhou Biomedical Industrial Park Phase II13,000 Suzhou Medinozhi Medical Tech-nologyMedical devicesMedpark Phase III12,542 Source:Cushman&Wakefield Valuation&Advisory Services,Cushman&Wakefield ResearchSource:Cushman&Wakefield Valuation&Advisory Services,Cushman&Wakefield ResearchNote:Only matu

184、re projects in a stable operation phase are considered.Source:Cushman&Wakefield Valuation&Advisory Services,Cushman&Wakefield ResearchDiagnosing the Market:The Chinese Mainland Life Sciences Sector 33Ahead,given its developmental maturity,Suzhou Industrial Park is expected to continue to draw life s

185、ciences-related enterprises in the future.Meanwhile,Suzhou High-tech Zone is also expected to further develop its life sciences business infrastructure,while Wuzhong District generally will continue to offer abundant land resources,for those enterprise wishing to build and operate their own life sci

186、ences commercial real estate facilities,be it an office,a lab or production space.Suzhou Market Development OutlookTable 25:Suzhou Future property supplyLocationKey Future Supply ProjectsSuzhou Industrial ParkZone E of Suzhou Biomedical Industrial Park Phase VSuzhou Biomedical Industrial Park Phase

187、VIChemical pharmaceuticalsSuzhou National Hi-Tech DistrictESR International Life Sciences Industrial ParkSource:Cushman&Wakefield Valuation&Advisory Services,Cushman&Wakefield Research34 CUSHMAN&WAK E F IE L DKey TakeawaysThe life sciences industry is continuing to evolve.The industrys development i

188、s being supported by a number of factors.Of the more important elements,four include policy,industry growth,population demographic dynamics,and the level of innovation.These four aspects and more will not just support business opportunities within the life sciences industry in China but will also po

189、sitively affect demand for life sciences-related commercial real estate within the country and especially in the five city markets featured in our report.Beijing Beijing will focus on the development of gene technology,cell therapy,regenerative medicine,brain science,brain-computer interface,synthet

190、ic biology and other sub-life sciences industries in Haidian,Shijingshan,Tongzhou,Changping,Daxing,Pinggu,Miyun,Jingkai and other regions to meet the needs of future health and medical care.Shanghai Medicine innovation research and development,high-end medical equipment,smart medical treatment,digit

191、al healthcare and the incorporation and utilisation of AI have become industry development hot spots and Shanghai aims to be a centre for these types of life sciences industry advancements over the next few years.Shenzhen The entry of large-scale professional industrial parks to incubate and acceler

192、ate the development of the biomedical industry will help Shenzhen to innovate and enhance its competitiveness in various professional fields of biomedicine.Guangzhou With life sciences being promoted as one of the three emerging pillar industries,by 2025 the sector is expected to achieve an industry

193、 output value of RMB210 billion.Suzhou Ahead,given its developmental maturity,Suzhou is expected to continue to draw life sciences-related enterprises in the future.Diagnosing the Market:The Chinese Mainland Life Sciences Sector 3536 C USHMAN&WAK E F IE L DBusiness ContactsAndrew ChanManaging Direct

194、orHead of Valuation&Advisory Services,Greater CJampion XuDirector of Valuation&Advisory Services,East CHans GuHead of Valuation&Advisory Services,East CRainy YuDirector of Valuation&Advisory Services,East CVanessa ZhangAssociate Director of Valuation&Advisory Services,East CDiagnosing the Market:The

195、 Chinese Mainland Life Sciences Sector 37Alva ToVice President,Greater ChinaHead of Consulting,Greater CTony SuManaging DirectorHead of Industrial&Logistics Property Services,CJonathan WeiPresidentProject&Occupier Services,CDavid ShiManaging Director Head of Project&Development Services,China Co-Hea

196、d of Sustainability Ser-vices Platform,Greater CFrancis LiInternational Director Vice President,Greater China Head of Capital Markets,Greater C38 C USHMAN&WAK E F IE L DRESEARCH TEAMEason LeeAssociate Director of Research TRosanna TangHead of Research Hong KSabrina WeiHead of Research North CIvy Jia

197、Head of Research West CXiaoduan ZhangHead of Research South&Central CThis report was authored by Shaun Brodie,Head of Research Content,Greater China,and Head of Research,East China and designed by Tenny Shen.Analysis support was provided by Yvonne Jiang.Proofreading services were provided by Simon G

198、raham.To better serve our clients our China Research Team has established Centres of Excellence in various focus areas,such as Capital Markets,Occupier Markets,Office,Industrial and Retail.Shaun leads the Research Centre of Excellence for Greater China Occupier Research.If you have any queries relat

199、ed to Occupier Research in Greater China,please contact:Shaun BrodieHead of Research Content,Greater ChinaHead of Research,East CAbout Cushman&WakefieldCushman&Wakefield(NYSE:CWK)is a leading global commercial real estate services firm for property owners and occupiers with approximately 52,000 empl

200、oyees in nearly 400 offices and 60 countries.In Greater China,a network of 23 offices serves local markets across the region.In 2023,the firm reported revenue of$9.5 billion across its core services of valuation,consulting,project&development services,capital markets,project&occupier services,indust

201、rial&logistics,retail and others.It also receives numerous industry and business accolades for its award-winning culture and commitment to Diversity,Equity and Inclusion(DEI),sustainability and more.For additional information,visit .DisclaimerThe information contained within this report is gathered

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