With an investment of approximately 20 million euros ($21.69 million), Bayer Consumer Health launched the China Center of Innovation and Partnership (CCIP) in Shanghai on Wednesday, aiming to integrate more deeply into the country's innovation ecosystem.

The CCIP is committed to building an integrated innovation partnership network that connects efforts from the industry, academia and research, with the aim of accelerating and transforming R&D innovation and scientific achievements in China, a market expected to continue rapid growth in the coming years for the consumer health business of Bayer.

China is one of the strongest growth engines for Bayer globally, and the second-largest market for consumer health, mainly including categories such as nutrition, digestive health and skincare.

The establishment of CCIP is another important step for the company to increase investment in China, and helps further practice its principle of "in China, for China, benefiting the world".

Arturo Sanchez, head of commercial operations in Asia-Pacific and Latin America of Bayer Consumer Health, said: "China plays a crucial role in global innovation. The vibrant economic and societal landscape here presents unique opportunities to improve and expand self-care solutions."

David Evendon-Challis, chief scientific officer and chief marketing officer of Bayer Consumer Health, said the investment is mainly not in infrastructure, but in partnerships and innovation.

"CCIP brings together lots of different types of partnerships for the first time. As a flagship, we hope such a model to be rolled out around the world following its success in China," he said.

From both R&D and market perspectives, China has become an important source of global innovations for Bayer Consumer Health. By 2023, innovations in China accounted for 15 percent of Bayer Consumer Health's global innovation portfolio, and it is expected to contribute over 30 percent to local business growth in 2024, one of the highest proportions in the world.

In addition to empowering local innovation partners, CCIP will further integrate consumer needs in China, Asia-Pacific and the world, leveraging Bayer's global network to accelerate innovation achievements from China to go global, according to the company.

The company already has two supply centers in the country, one in Kunming, Southwest China's Yunnan province, and the other in Qidong, East China's Jiangsu province. On Friday, the company broke ground on its second center in Qidong.

"The investment in the first phase of the new Qidong site is about 600 million yuan ($84 million). It is scheduled to complete construction by 2026 and kick off operation by 2028," said Julio Triana, president of Bayer Consumer Health and member of the board of management of Bayer AG.

The company said it chose to set up CCIP in Shanghai, as the city is one of those in the country with the most concentrated resources in healthcare industry, the most comprehensive R&D fields, and the richest achievements in new drug development.