GDD aims to boost development of high-end biopharmaceutical industry

Guangzhou Development District (GDD) has launched a document on a series of measures on Feb 14 to boost the regional high-quality development of the biopharmaceutical industry in an effort to cultivate a world-level cluster for its biopharmaceutical industry.

These measures apply to all biopharmaceutical companies that are newly set up with major industrial projects with a scale of fixed asset investment of 1.5 billion yuan ($213.42 million) in areas like antibody drugs, antibody coupling drugs, nucleic acid drugs, genetic engineering drugs, new structural protein and peptide drugs, new vaccines, gene therapy, as well as cell therapy.

These companies' place of industrial and commercial registration, tax collection and management relationship, as well as statistical relationship should also be located in GDD and have a complete financial system, independent legal person status, independent accounting, as well as the related commitment letters.

Companies that have projects in areas, such as high performance medical devices, as well as chemical drugs of new mechanism, target, and structure, are also included in the applicable objects of the measures as long as their projects meet the requirement of the scale of fixed asset investment mentioned above.

Companies that have signed a project investment agreement and land transfer contract, as well as completed the project filing can apply for a reward of 15 percent of the total investment in fixed assets that has been completed once a year. The reward for each project is up to 500 million yuan.

Companies can receive a subsidy of 20 percent of the research and development (R&D) cost that the company has paid before its products have been put into production once a year. The subsidy will be offered for three years and can amount to up to 2 million yuan per year.

Companies can receive a reward of 10 percent of the costs that it has devoted in R&D after the production of the products every year, and the reward is also offered for three years with a limit of 10 million yuan per year.

Companies can be rewarded 60 percent of the local economic contribution it has made after production per year for a total of three years.

Each company can apply for up to 10 places for the reward of attracting talents, and the reward will be 15 percent of the individual taxable income amount of each talent for three years. In addition, the reward of each place should not exceed the individual tax payable and the total reward should not exceed 30 percent of the local economic contribution made by companies.

Local companies are encouraged to carry out professional training in biopharmacy by hiring or entrusting professional institutes, such as higher education institutes and biomedical training colleges from both home and abroad. A subsidy of 50 percent of the expenses of training will be given to companies, with up to 500,000 yuan available for the subsidy.

Companies renting places for pilot tests and offices before the production of projects can receive a subsidy of 100 percent of the rent for three years, with up to 3 million yuan available for the subsidy for each company.

Companies meeting any of the requirements for the application of subsidies mentioned above can only apply for the highest subsidy. The taxation of the subsidy will be undertaken by the company or the person according to the law.

Companies or people who violate the law in using the subsidy will be punished according to the relevant regulations and the subsidy should be returned.

The document will be valid for the next three years starting from Feb 14, 2020.

This English version is only for reference. To learn more, please refer to the authoritative Chinese version on gz.gov.cn.

(http://www.gz.gov.cn/gzswjk/2.3.2.1degbbns/202002/445e91f9bdff4ced87e75ec7a85bd512.shtml?from=groupmessage&isappinstalled=0)

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