Biopharma firms boosted by policy support (2)

"Supportive policies for relevant companies such as subsidies and tax reductions should follow," Wu said.

Changzhou Qianhong Bio-pharma Co said in a statement Monday that it will take advantage of supportive policies to develop its business. Its shares closed up 1.21 percent in Shenzhen trading Monday.

The biomedical industry involves high investment and high risk, so it is necessary for the government to give it some support, Guolian Securities said in a research note published Monday.

"The plan will bring challenges to foreign pharmaceutical firms' business in China, as the government will increase its support for homegrown pharmaceutical firms, especially in the research and development field, which could help them increase competitiveness against foreign rivals," Jiang Huayang, an industry analyst at Shenzhen-based industry research institution CIConsulting, told the Global Times Monday.

The plan also aims to increase the share of Chinese-made biological drugs in the global market, which is estimated by BioPlan Associates to be worth $140 billion annually.

"It's a challenge for domestic firms, as it is difficult for their drugs to get approval from foreign drug regulatory authorities," Wu said.

The number and rate of approvals in the US has been relatively poor in the past few years, with only 12 biopharmaceutical products entering the US market in 2011, BioPlan Associates said in a reported published in February 2012.

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