Pharmaceutical or chemically synthesized drugs — as opposed to biopharmaceutical drugs extracted from or semi-synthesized from living biological sources — are taking a lead in terms of total industrial output value, operating income, net profits and number of businesse, according to officials. The industrial output value of the segment in the zone was 30.13 billion yuan in 2017.

The industrial output value of the biopharmaceutical segment reached 11 billion yuan in 2017.

The overall industrial output value of the medical devices segment was 12.8 billion yuan in 2017.

Official statistics show that TCM businesses in the zone reported 9.15 billion yuan in overall industrial output value last year.

In terms of the number of enterprises, there were 50 chemical drug manufacturers, 19 TCM manufacturers, 39 biopharmaceutical manufacturers and 49 medical device manufacturers in the Zhangjiang demonstration zone in 2017.

The strength of R&D among the biopharmaceutical innovation companies in Zhangjiang demonstration zone has clearly put it in a leading position in the sector in China.

The demonstration zone maintained a strong momentum in promoting innovation last year. A total of 146 projects developed in the zone have entered the stage to publicize clinical trial results.

Shanghai has been reforming the drug approval system by piloting a marketing authorization holder mechanism in 2017.

Under the marketing authorization holder system, which is widely adopted in developed markets, drug companies' marketing and production processes are separated. A marketing authorization holder can outsource the production process to different pharmaceutical companies.

However, under China's current Drug Administration Law, marketing authorization and production are combined.

By the end of last year, 33 businesses in the city had submitted 92 applications. Most of those businesses were from the zone, according to its administrators.