Quietly, China has slipped into an influential role within the global biotech industry. US and European life scientists may increasingly notice that many of the test tubes and tips and certain reagents in their laboratories are manufactured in China.

But many executives may not recognize the name BioAsia Co.—a Shanghai-based bio-services provider that US biotech product and service giant Invitrogen Corp. recently acquired. They may also be unaware that SiBiono GeneTech Co., Ltd., the first company in the world to receive regulatory approval by any agency for a gene therapy, is based in Shenzhen.

Challenging global players, Chinese companies have begun to compete in lower-end bio-equipment, reagents, and consumables. Some local suppliers have moved into higher-tech equipment and analytical software and have begun to pose a greater threat to established companies.

Though most of the radical changes in China's biotech industry have taken place in the last seven years, this growth has its roots in reforms that began more than 20 years ago. China's biotech industry has emerged largely because of beneficial policy changes, increased program funding, low labor costs, and reorganization of China's science and technology system.

The creation of high-tech zones has helped put important infrastructure and tax incentives in place.

Today, more than 300—mostly domestic—companies in China are using molecular biology to create products, provide services, and research new drugs. China has also become the dominant force behind a number of fermentation-based chemicals such as citric acid and ascorbic acid (Vitamin C).

Although estimates vary widely, analysts believe that the PRC government spends more than $600 million per year on biotech research and development (R&D) through its funding initiatives. China's national and local governments also pour money into quasi-venture capital companies that invest in technology enterprises. Some of these venture capital companies invest in biotech startups, though typical investment levels fall far short of the roughly $500,000 to $2 million that startups command in developed countries. Though funding for basic and applied research in China is modest compared with that in developed countries, it is important to note that because of the low costs of labor, certain equipment, consumables, and reagents, investors can realize more "bang for the buck" in Chinese laboratories.

Foreign investment has flowed into China's biotech industry through a number of channels, including outsourcing, biopharmaceutical and lab supply manufacturing ventures, and in some cases, R&D-based ventures.

Source:佚名