20-Billion-Yuan Pharmaceutical Fund Launched in Hangzhou

Hangzhou’s endeavor towards a city of biomedical innovation will be given a new big boost. Recently, Hangzhou State-Owned Capital Investment Operation Co., Ltd signed an agreement with Tigermed, Hangzhou Hi-Tech Venture Capital Group and Tailong Venture Capital to jointly establish the Hangzhou Tigermed Biomedical Industry Fund with a commitment of 20 billion yuan. The fund of funds (FoF) for the life and health industry in Hangzhou will operate with market-oriented approaches such as direct investment and feeder fund investment. The money will mainly be channeled to companies in innovative medical devices, biomedicine, medical services, medical information technology, digital therapy, intelligent manufacturing and other related sectors.

Being part and parcel of Hangzhou’s massive FoF project for the 14th Five-Year Plan period, the fund is expected to further facilitate financing for the real economy. Life and health industry is one of Hangzhou’s pillar industries that top the agendas during the 14th Five-Year Plan period. To realize the potential of the industry and to serve the big picture of socialist modernization, Hangzhou Capital joined hands with Binjiang District and leading pharmaceutical companies to establish the FoF, showing its determination to optimize the layout of state-owned capital and its aspiration to help foster a world-class life and health industry in Hangzhou.

In recent years, Hangzhou has cultivated multiple biomedical industry clusters that are home to some of the top pharmaceutical companies. After the launch of the Tigermed Biomedical Industry Fund, the FoF and feeder funds will bring an estimated 50 billion yuan of investment into Hangzhou’s biomedical industry, which is set to attract more high-quality domestic and foreign capital, pharmaceutical projects, technologies and professionals to the city and promote a deeper integration of industry, innovation, capital and policies.

The negotiation of the project started in April and the intention agreement was sealed in a mere two months as the result of efficient yet meticulous preparation. In the process, Hangzhou Capital has acted with a sense of responsibility and a down-to-earth attitude drawn from its study on Party history. Going forward, the company is determined to think strategically to deepen institutional and mechanism reforms and stick to operation based on market rules. The mixed-ownership fund it co-established with other companies will provide insight into the operation of market-oriented fund and advance SOE reforms in parallel with optimizing the allocation of industrial resources. It will strengthen the ties between private and public sectors, between municipal and district government and serve as a classic example of regional comprehensive reforms with Hangzhou’s characteristics.

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