by Mike Licht, NotionsCapital.com

Industry expressed strong interest, investment institutions frequently Pharmaceutical Industry Extending an olive branch. In the recently held Shanghai Shanghai International Symposium on biotechnology and medicine, it was noted that many focus on the pharmaceutical industry, venture capital business owners optimistic about China’s development prospects, investment in China means the wind will be more Chinese characteristics. In Shenzhen, many pharmaceutical companies sought after by venture organization, is now settled that SAIF Asia Investment Fund and Shenzhen Capital Group Ltd, the two sides in the first phase of the Shenzhen Han Yu medicine to 15 million U.S. dollars investment .

Increase the amount of foreign investment

It is understood that the pharmaceutical industry was the first to introduce one of the areas of foreign investment, has about 4000 items total contract amount of more than 15 billion U.S. dollars. However, existing practical realization of investment projects in 1000-2000 amounted to 6 billion U.S. dollars.

Which foreign investment projects in China’s largest pharmaceutical settled down in Shenzhen. 2007, Sanofi? Aventis and the Shenzhen Municipal Government signed the establishment of influenza in Shenzhen Vaccine Production facility agreement, which is by far the largest foreign investment in bio-pharmaceutical projects, an investment of 700 million yuan. Sanofi Pasteur plans to start building the factory, goal for the Chinese market by 2012 production of seasonal influenza vaccine. Sanofi Pasteur to establish this new facility, the purpose is to prepare the event of a human influenza pandemic, or the World Health Organization (WHO) found that a new influenza pandemic strain of influenza during a pandemic vaccine can be produced. Plant design for the Chinese vaccine market is expected to grow leaves room for future expansion.

Experts say the trend of multinational investment in China to set up factories for the early show, from pharmaceutical production to development, distribution, from pharmaceuticals to medical services. According to the Shenzhen Development and Reform Bureau of the person in charge of the construction of Sanofi Pasteur vaccine facility in Shenzhen, is entirely different from the previous repackaging plant, which will bring all the vaccine production process are placed in Shenzhen, including raw materials procurement, production and manufacturing, production of vaccine are mainly exported to Asia, excluding Japan, is expected to reach 1 billion yuan annual output value. Sanofi Pasteur in history, this is the first in France and in vaccine production outside North America Industrial Investment, the company has become the localization of production in China’s first multinational vaccine producers. Can be said that the investment is from multinational companies to meet market demand in China and further extended to build a global production base. “

Actively involved in venture capital Although the return on investment the pharmaceutical industry

long period, high risk, but many focus on the pharmaceutical industry risk fund holders enthusiasm is unabated. Since last year, a number of pharmaceutical companies in South China investment body the wind phase, the Goldman Sachs investment Nepstar, Mindray WIIG investment, investment in the Guangzhou International Data Group, Sandia Hornsey pharmaceutical and medicine, the most recent is John SAIF Investment Yu.

Wind investment agency said, the investment return on the Chinese market than the U.S. market, in the amount of U.S. investment is often the single input high, efficiency is low, the Chinese pharmaceutical industry investment and the return of the wind pretty good. In the direction of investment, the venture investment for the company is more concerned about early. But investors pointed out that the medical information industry, investment, medical services for children and the elderly return faster, similar to the beauty of life can improve the quality of medical research and services are also popular.

In practice, venture funds in China to operate on specific projects and overseas are very different. A venture company partner, venture capital and business objectives will not change, but a number of small and medium enterprises in China for the way quicker ways to achieve goals is not clear, this is a bit worrying. The responsible person said: “We believe that existing technologies in the enterprise itself, a huge market where the key is suitable for transparent financial and human resources.”

Continuous influx of foreign capital in China at the time of the pharmaceutical industry, the capital has also been observed out how best to achieve and how to take a more diversified investment mergers and acquisitions, domestic laws and regulations and property rights trading market should be improved .

SAIF Asia Investment Fund chief Andrew Yan said in an interview, the positive role of foreign investment mainly reflected the improvement in the technical level, management improvement, product introduction, changes in corporate ownership structure and industrial structure change. He said: “We have more in business development and product development in the early stage investment, so no hurry to quit. If the exit, as A-share market re-financing capacity is rather poor, I think a more feasible approach is to bring to the overseas listed companies . ”

This week we have Michael Brill, Founder of Crushpad and Stephen Bolger, CEO of Crushpad Bordeaux. For more information, show notes, and an upcoming schedule…