In a strategic move designed to bolster innovation in the pharmaceutical sector, Sanofi, a leading healthcare company headquartered in France, and private equity and venture capital firm Cathay Capital recently co-established a pharmaceutical innovation fund in Shanghai's Jing'an district.

With about 2 billion yuan ($274.46 million) under management, the fund aims to invest in the pipeline for innovative medicine that has entered the clinical stage in China and in related industry opportunities.

It's expected that this will help accelerate the market access of innovative drugs and support the high-quality development of the biomedical industry in Shanghai.

Sanofi was one of the first pharmaceutical multinationals to enter China after the launch of the country's reform and opening-up policy. It established its office in the country in 1982 and set up its China regional management headquarters in Shanghai's Jing'an district in 1995.

Zhong Xiaoyong, secretary of the CPC Jing'an district committee, emphasized the importance of the biomedical industry as a key focus of technological revolution and competition, as well as one of the three leading industries for development in Shanghai and a priority sector for Jing'an.

Over the years, Jing'an has seen significant growth in its biomedical industry, with the expansion of industry scale. One-third of the world's top 50 biomedical companies have established a presence in Jing'an, Zhong noted.

The official envisioned that Sanofi and Cathay Capital will leverage their strengths to attract more high-quality resources and elements in the industry chain, ecological chain and supply chain to Jing'an.

The district will do its utmost to provide relevant support — involving policies and assistance — to create a high-quality business environment for the fund's operation and enterprise development, Zhong added.

Olivier Charmeil, Sanofi's executive vice president for general medicines, said the establishment of the fund marks a significant milestone in the deep integration of Sanofi with the local innovation ecosystem and in its mutual development with the Chinese market.

In his opinion, with a population of 1.4 billion, China is one of the most innovative pharmaceutical markets globally. Since 1982, Sanofi has been deeply rooted in China — currently the company's second-largest market.

Charmeil remarked his company is confident about the Chinese market and look forward to deepening cooperation with Cathay Capital and local biomedical enterprises.

It will also leverage Shanghai's internationalized innovation environment and policy support to drive the transformation and implementation of cutting-edge innovations — benefiting patients and contributing to the "Healthy China 2030" strategy, Charmeil noted.

Cai Mingpo, founder and president of Cathay Capital, said the inauguration of the fund is a significant step towards advancing China's pharmaceutical innovation to leading international standards.

Cai added that China's pharmaceutical innovation holds immense potential and Cathay Capital's mission is to provide a platform for local enterprises to achieve groundbreaking development.

This collaboration aims to offer comprehensive support to Chinese innovative pharma companies across various dimensions — from research and development to clinical trials and regulatory compliance — assisting them to overcome key obstacles and provide more treatment options for patients, Cai remarked.

Source: Jiefang Daily