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The Beijing Economic and Technological Development Area (BDA), set in the capital's southern suburb of Yizhuang, is now the number one choice for many leading global pharmaceutical and medical equipment businesses looking to service the fast growing Chinese marketplace.
According to many businesses that have relocated there, they were primarily drawn by its first-class business environment, including its well-developed infrastructure, excellent services and efficient and transparent management system.
The medical equipment industry is one of the most successful sectors in the BDA. The area is now home to 11 medical equipment companies and, in the first quarter of this year, these businesses generated 59.7 percent of the total sales revenue of the entire sector in Beijing.
GE-Hangwei
The GE-Hangwei Medical Systems Co Ltd, a joint venture funded by US-based General Electric, is one of the leading medical equipment manufacturers in the area.
Established in 1991, GE Hangwei is the American electrical giant's first production facility in China.
The company was established in Yizhuang in 1999. Since then it has independently developed and produced a range of medical equipment, including computer tomography (CT) machines. This is a major step forward for the company as,[link widoczny dla zalogowanych], prior to this, it had primarily been an assembly plant, according to Chih Chen, former president and CEO of GE Healthcare in China.
In July 7, 2000, GE Hangwei produced its 1,000th CT machine, making China GE's fifth largest production base in the world. In the same year, one-fifth of GE's worldwide output of CT machines was made in Yizhuang.
In 2003, GE Healthcare began work on its Beijing industrial park in Yizhuang, a facility designed to match the specifications of GE plants in the United States. This facility now has an annual production capacity of 1,000 CT machines, as well as the manufacture of other high-end medical equipment.
In 2008,[link widoczny dla zalogowanych], GE's output value in Beijing reached 1.8 billion yuan. In May this year, GE announced plans to invest some $3 billion in improving its innovation capacity in Yizhuang over the next six years.
Chen said: "The rapid growth of GE in Yizhuang shows we have made the right choice. We are very impressed with its first-class business environment, rich human resources and open-minded and transparent management system."
Sanofi-Aventis
As one of the first multinational medical companies to establish an office in China, Sanofi-Aventis, Europe's largest medical company, began operating in Yizhuang 15 years ago, following the opening of Aventis Beijing.
Now,[link widoczny dla zalogowanych], 15 years later when the world is in the shadow of an on-going financial crisis,[link widoczny dla zalogowanych], Sanofi-Aventis has announced plans to invest another $90 million in building an insulin glargine injection production line in Yizhuang. Commenting on the move, Christopher Viehbacher, GEO of the Sanofi-Aventis Group, said: "This will be a major breakthrough for Sanofi-Aventis in China,"
Such a "breakthrough" reflects Aventis Beijing's rapid development over the past 15 years. Starting life as a simple packaging plant for imported medicines, the company now produces a raft of products, aimed at treating a variety of ailments, including liver diseases, diabetes and cardiovascular disease.
Addressing the changes, He Guoling, manager of the production department of Aventis Beijing, said: "This newly increased investment will be mainly used in expanding the production capacity of Lantus insulin glargine injection,[link widoczny dla zalogowanych], one of our core products.
"The expansion project will begin in February next year. Upon its completion in 2011, our annual production is expected to reach 50 million injection kits, enabling us to better meet the needs of diabetes sufferers in China."
"We'd like to thank the local government for its support for the project. It took us less than a week to complete all the application and licensing procedures. The government has also done a tremendous job with regard to utility supplies and telecom access."
Biotech Pharma
Founded in August 2000 in Yizhuang, Biotech Pharma Co Ltd is a China-Cuba joint venture in the field of research and development (R&D) into genetic recombined monoclonal antibodies.
Recalling just why the company chose Yizhuang as its base for operations, Bai Xianhong, chairman and president of Biotech Pharma, said: "As a hi-tech biomedicine business, we have strict requirements regarding our production sites, particularly their infrastructure and natural environment. The Yizhuang area, undoubtedly, met all our requirements."
In February 2008, after eight years of research the company's Nimotuzumab monoclonal antibody was awarded a sales license by the State Food and Drug Administration. This new product is viewed by medical insiders as a veritable "biological missile" for treating cancers, as it is said it can target cancer cells without harming healthy ones.
Describing the value of the product, Bai said: "A gram of gold is worth about 200 yuan, but a gram of such antibody is worth between 700,000 and 800,000 yuan.
"Its value cannot be measured by money alone. This is a hi-tech product that, traditionally, could be produced in only a few countries such as the US."
Bai said that the company had now established its own research academy in Yizhuang to develop a variety of antibodies, adding: "This is a strong demonstration of confidence in both our competence and the development potential of the Yizhuang area."
Outsourcing businesses
Four years ago, Pharmaon Beijing was a biomedicine outsourcing service provider with only about 100 employees. The company has now seen its business revenues double over the past two years and is planning to build its own testing facility, with a floor space of 100,000 sq m, in the near future.
The growth of Pharmaron, as well as other similar businesses, such as Joinn Laboratories, Sino Biological and IPE Biology, has been a natural outcome of the Yizhuang zone's support for the medical outsourcing service industry. This has seen it offers research facilities, as well as development and testing services for a range of pharmaceutical companies.
Pharmaron moved to the Yizhuang area in 2005. The company is now the largest medical outsourcing service provider in north China and one of the top three in the whole country.
Lou Xiaoqing, president of Pharmaron, predicts the company's business revenue will exceed 200 million yuan this year. He said: "We are planning for a major expansion over the next few years and will extend our business from chemical ingredient analysis to a wide range of areas, such as pathological and clinical analysis."
At present the medical outsourcing enterprises in Yizhuang are among the leading members of the Alliance of Bio-Box Outsourcing of China (ABO). The ABO aims to assist its members through offering contracted research outsourcing services for pharmaceutical producers. In 2008, ABO members had a combined business revenue of some two billion yuan.