Q&A on investment in Wuxi Life Science and Technology Park

Q: How is the spatial layout and transportation of Wuxi Life Science and Technology Park?

A: Wuxi Life Science and Technology Park, located in Wuxi National Hi-tech District (WND) of Jiangsu province, consists of an innovation zone, R&D zone and industrialization zone.

With a planned construction area of 800 mu (53.3 hectares), the innovation zone focuses on IoT-based medical care, medical informatization, medical devices and medical sensors.

The R&D zone is home to companies featuring bio-pharmaceuticals, medical devices and healthcare services. It has set up a platform base integrating medical storage, logistics, sales, a public technology service platform and a comprehensive support service system covering a planned construction area of 584 mu (38.9 hectares).

With a planned area of 1,099 mu (73.2 hectares), the industrialization zone focuses on the commercialization of achievements in innovative medicine, medical devices and high-end health products.

Q: How is the life science and technology industry of WND?

A: In 2015, the total revenue of life science and technology companies in the district exceeded 44 billion yuan ($6.51 billion). The industrial output of these companies totaled 20.46 billion yuan, up 20 percent year-on-year. The output value of life science and technology companies with an annual industrial output value above 20 million yuan reached 16.18 billion yuan, and the output of bio-agriculture companies amounted to 1.17 billion yuan. Medical distribution companies generated 23.63 billion yuan in sales volume. The area has attracted over 200 innovative projects and nine projects from Fortune 500 companies including GE Healthcare, Siemens Healthineers, Merck KGaA, AstraZeneca, Danone, Bristol-Meyers Squibb, Dupont, Mitsubishi Chemical and Johnson & Johnson.

Key industries and representative companies:

a) Innovative drugs: AstraZeneca, Nutricia, Yunnan Baiyao, Safe Pharmaceutical, Jiminkexin, Hebang, JC Company, EyeCure.

b) Medical devices: GE Healthcare, Siemens Healthineers, Haiying Medical, TCL Healthcare, Chison Medical Imaging, HISKY Medical Technologies, Sunlant.

c) Smart medical and health care services: Wuxi Medical Internet of Things (IoT) Research Institute, BayNexus, Mandalat and DIH (Delivering Inspiration & Health) Technologies.

Q: What are the park's future development focuses and goals?

A: The park will strive to launch a new industrial layout over the next five years. This layout will promote high-end medical devices and bio-medicine as two pillar industries, and boost the development of seven key industries including diagnostic imaging, high-value consumables, in vitro diagnostics, smart health care, antineoplastic drugs, CRO and health services .

By 2020, the output value of WND's life science and technology industry is expected to reach 90 billion yuan, including 20 billion yuan in high-end medical devices, 22 billion yuan of bio-medicine and 3 billion yuan for smart health care.

Q: What about the diagnostic imaging industry of WND?

A: WND has attracted over 10 diagnostic imaging giants, including GE Healthcare, Siemens Healthineers, Haiying Medical, TCL Healthcare and HISKY Medical Technologies. The output value in 2014 totaled 2.1 billion yuan, occupying over 80 percent of the district's total medical devices industry.

As the birthplace of type-B ultrasonic and medical films, Wuxi boasts rich talent resources of the color-ultrasonic industry. The establishments of GE Healthcare, Siemens Healthineers and TCL Healthcare have brought advanced technology and talented elites to the park, further enhancing the park's competitiveness.

Wuxi is capable of producing whole machines like medical ultrasonic equipment, high-end digital color ultrasound equipment, magnetic resonance imaging equipment and PET-CT. Wuxi has also formed a comprehensive industrial chain with the ability to produce supportive products such as X-ray films and photosensitive consumables.

Q: What about the high-value consumables industry of WND?

A: A number of competitive high-value consumables companies have settled in WND, including Wuxi S&Y Co and Wuxi City Ryps Medical Appliance Co. The district also has a group of precision machining enterprises and CNC machining centers, offering strong support to the production of precision medical consumables. Also, a lot of professional schools have helped WND train many excellent skilled workers.

In November 2015, the Ministry of Industry and Information Technology opened a 3D printing innovation and entrepreneurship center in Wuxi, which offers the services of creative design, product optimization and mold making in an effort to promote the integration of 3D printing technologies and applications while boosting the incubation of 3D printing projects, especially in the medical industry.

Wuxi will also standardize the purchase of high-value consumables to bring more opportunities to local companies.

Q: What about the in vitro diagnostic (IVD) industry of WND?

A: Wuxi currently has more than 150 IVD companies, with products related to life sciences, the testing and production of cells and genetics, the storage of biological information and health care.

The largest genetics testing center in Asia is scheduled to be built in Wuxi with a total investment of 500 million yuan.

SYSMEX, an international IVD manufacturer from Japan, is one of the top 10 IVD companies in the world, with a sales volume of 100 billion yen ($970.24 million). They are a leader in the fields of blood analysis, blood coagulation and urinary sediment.

Wuxi Entry-Exit Inspection and Quarantine Bureau cooperated with DAAN Gene on a genetics project to drive Wuxi into an era of genetics testing and help Wuxi improve its testing ability in order to reach a domestic leading level. Excellent IVD companies are encouraged to settle and serve in Wuxi.

Q: What about the antineoplastic drug industry of WND?

A: Currently, the pharmaceutical giants AstraZeneca and Pfizer are located in Wuxi. They have announced to invest $150 million to expand current production capacity. Wuxi also has a leading global contract research outsourcing provider, WuXi AppTec, which provides a bio-medicine R&D platform with global operations. Leading companies from home and abroad have brought cutting-edge technologies to Wuxi and professional talent supports the park's medical industrial transformation. For example, Howfond Biopharma has introduced a Nobel prize winner to build a lab for antineoplastic research. In addition, Wuxi's medical colleges also offer support talent to antineoplastic drug research and clinical test.

Q: What about the CRO industry of WND?

A: Wuxi has the country's largest bio-medical research outsourcing provider, WuXi AppTec, and has built a park for medical research outsourcing service. The district has attracted several medical research outsourcing service companies. Hospitals in Wuxi, including People's Hospital, Second People's Hospital, Fourth People's Hospital and Hospital of TCM, are able to conduct drug clinical and safety trials at all stages.

The Pharmacy School of Jiangnan University serves as a key base for bio-medical talent in addition to the senior talent of enterprises. The perfect location of Wuxi, and its proximity to Shanghai, allows for the sharing of human resources with the metropolis.

Q: What about the smart health care industry of WND?

A: The district has more than 1,000 IoT enterprises, 30 of which have generated over 100 million yuan in business revenue and 22 of which have seen over 50 million yuan of revenue. The district has formed key industrial clusters, including smart sensors, sensing chips, cloud computing and application services. The district has attracted 32 IoT research institutes, accounting for 81 percent of the city's total. A total of 39 talented personnel under the National Thousand Talents Program have been introduced to the district, accounting for 78 percent of the city's total.

The district is the only nationally certified testing center for the IoT. In 2015, companies in the life science and technology park worked with medical institutions on 17 medical IoT projects.

The district's smart health care industry generated 130 million yuan worth of output value and 168 million yuan worth of business revenue in 2015, a year-on-year increase of 20 percent and 29 percent, respectively.

A number of key innovative projects have entered the industrialization stage, and a number of competitive companies have become the driving force of the city's development of smart health care, including Mandalat, Shiling Technology and Medicool.

Q: How many choices of location does the park provide for companies?

A: The R&D area of the park has been built with nine separate factory buildings, each covering an area of 3,000-5,000 square meters. Companies are allowed to rent or buy the buildings. They can also buy land to build their own offices providing certain demands are met, such as investment intensity. As an example, in 2016 companies with an investment intensity of 5 million yuan were eligible to buy land.

Q: What preferential policies exist for the life science and technology industry?

A: Projects that meet the park's industrial specifications can enjoy favorable policies as follows:

1) Rent assistance for technology companies throughout the entire development process.

2) Application for the district's “Leading Talent Entrepreneurship Plan” to be awarded between 500,000 – 2 million yuan of research fund subsidy, rent-free R&D office space and one or two rent-free apartments for up to three years.

3) Companies with a GMP (Good Manufacturing Practice) or GSP (Good Supply Practice) certificate, a production license and marketing authorization will be rewarded with 200,000 to 500,000 yuan.

4) Senior executives of companies who have paid individual income tax for five consecutive years can receive a housing subsidy. Employees with a bachelors degree or above will receive a rent allowance of 500 to 800 yuan per month for two years if working in Wuxi for the first time.

5) Enterprises will receive a venture capital companies' angel investment or a pre-A-round investment, WND Technology Financial Venture Investment Group will follow up the investment at a ratio of 1:1, with a maximum of 3 million yuan.

6) Fude fund provided by Shanghai Fude Wusheng Equity Investment Management Company is aimed at WND's life science and technology industry. The first round of the fund totals 100 million yuan. WND takes up 20 percent of the shares as a limited partner (LP). The fund features market-based operations and is for pre-A-round projects.

Q: What are the procedures of settlement?

A：

Q: What services will companies enjoy after settlement?

A: Companies will be provided with various value-added services:

1) Free assistance in company registration

2) Free consultation on intellectual property, finance, human resource and financing the listing

3) Free help with application for national, provincial, municipal and district programs related to science and technology and talent

4) Free admission to the park's forums and salons of technology, finance, life science and technology

5) Favorable price while purchasing experimental equipment through the park's public technology platform

6) Use of infrastructures in the park including meeting rooms, library and fitness facilities at a preferential price or for free