Core Viewpoint - The article discusses the challenges faced by the biopharmaceutical industry in China, particularly in the Zhangjiang area of Shanghai, highlighting issues such as rising vacancy rates, declining rental prices, and the need for a shift in focus from real estate development to building a supportive industrial ecosystem [4][10][24]. Group 1: Industry Challenges - Many biopharmaceutical companies are struggling with cash flow, leading to difficulties in maintaining rental agreements in industrial parks [4][5][7]. - As of the end of 2023, there are 532 biopharmaceutical parks in China, but only about 200 listed companies in A-shares and Hong Kong, indicating a significant oversupply [5][6]. - The rental prices in some areas have dropped to as low as 2 yuan per square meter per day, reflecting the industry's downturn [8][10]. Group 2: Market Dynamics - The previous era of high rental prices (up to 7 yuan per square meter per day) has ended, with current prices being about half of that [7][10]. - The industry is experiencing a shift where many companies are looking to collaborate due to market constraints, but funding remains tight [5][6]. - The article notes that the focus on building infrastructure without a corresponding industrial ecosystem has led to many parks being underutilized [12][14]. Group 3: Government and Policy Implications - Local governments are beginning to reconsider their policies regarding the sale of property in industrial parks, which could lead to a more flexible market environment [9][10]. - The article emphasizes the need for a more rational approach to industry development, moving away from a purely real estate-driven model [22][23]. - The introduction of the "Fair Competition Review Regulations" aims to reduce unhealthy competition among parks and promote a more sustainable development model [22][24]. Group 4: Future Outlook - There is a growing recognition that the biopharmaceutical industry must adapt to new realities, focusing on innovation and collaboration rather than just infrastructure [23][24]. - Some industry insiders believe that the current downturn may lead to a more rational and sustainable growth phase in the future [24]. - The article concludes with a sense of cautious optimism, suggesting that while challenges remain, there may be signs of recovery in the industry [24].