(Yicai) Jan. 15 -- On the opening day of the third session of the 14th Shanghai Municipal Committee of the Chinese People's Political Consultative Conference, several members proposed ways to boost the innovation and hasten the global expansion of the city's biopharmaceutical industry.

Some of the key proposals included bigger resource allocation for early-stage research, aligning with global technology standards, and reforming payment methods for novel drugs to balance affordability, accessibility, and industry sustainability.

Innovating from scratch requires systems for risk-sharing, funding, and investment, Chen Qiyu, who is also co-chief executive of conglomerate Fosun International, noted at yesterday’s committee meeting.

Shanghai should allocate more resources to the biopharma fund of funds to support early-stage exploration in the industry, Chen said. That could enable companies to take various routes during the early exploratory stage and boost the innovation success rate, he added.

Biopharmaceuticals are one of Shanghai’s three key pioneering sectors along with integrated circuits and artificial intelligence. The city government announced last July a push to internationalize the sector, and released a four-year plan in October to enhance the international competitiveness of its biopharma businesses.

As a national medical center, Shanghai has a solid foundation in stem cell therapy, noted Zhang Yi, a standing member of the CPPCC Shanghai Committee and chairman of China Stem Cell Group Shanghai Biotechnology.

To expand and strengthen this technology further, it is essential to align with international standards, join in drawing up regulations, and set up pricing mechanisms, he said, adding that this would enable cutting-edge biopharmaceutical technologies “to go global and be commercially viable,” helping to drive the economic engine of the new era.

Innovative drugs must clear four major hurdles to enter clinical use: inclusion in medical insurance, hospital procurement, the willingness of physicians to prescribe them, and affordability for patients, said Yao Jinren, another standing member.  He proposed separating the payment standards and pricing system for novel treatments from pricing systems in health insurance.

Reasonable returns for drug developers should be ensured to underpin sustainable innovation, while diverse payment methods, including commercial insurance and other social support schemes, should complement medical insurance funds to cover the costs of innovative drugs, Yao noted.

This would resolve the "impossible triangle," where the reasonable demand for medication, affordability for individuals and the insurance fund, and returns for drug companies are difficult to balance, he said.

Editor: Martin Kadiev