Roche(US:RHHBY) Sou Hu Cai Jing·2025-07-31 16:15Core Insights - The share of innovative drugs in China's core hospital market increased from 21% in 2015 to 29% in 2024, with innovative drugs approved after 2015 accounting for 10% of the overall drug market by 2024 [1][4] - China has become the second-largest pharmaceutical market globally, driven by advancements in biopharmaceutical technology and increasing demand for innovative biological drugs [1] Investment and Production Expansion - Roche announced an investment of 2.04 billion yuan to establish a biopharmaceutical production base in Shanghai, aimed at enhancing local production and supply chain [2] - The new facility will focus on the localized production of Roche's ophthalmic drug, which is the world's first approved bispecific antibody for ophthalmology, and is expected to be operational by 2031 [2] - Daiichi Sankyo plans to invest approximately 1.1 billion yuan in Shanghai for an ADC production facility to meet the growing demand for oncology products [2][3] Policy and Regulatory Developments - The introduction of the segmented production pilot policy by the National Medical Products Administration (NMPA) aims to enhance production efficiency and optimize industry division [5][6] - The segmented production allows for different stages of biopharmaceutical production to occur in various locations, providing flexibility for multinational companies [6][8] - Shanghai has initiated the segmented production pilot, which is expected to facilitate the local production of innovative drugs and improve regulatory oversight [7][8] Industry Collaboration and Local Support - Cytiva has launched a cell culture medium development base in Shanghai and is collaborating with local firms to reduce production costs for cell therapy products [4] - The Shanghai government is actively creating a favorable business environment for pharmaceutical companies, enhancing policy support and innovation services [9][10] - Multinational companies like Roche and Boehringer Ingelheim are benefiting from Shanghai's systematic policy layout, which supports the entire lifecycle of innovative drugs [11]