Shanghai SDIC Invests Over 30 Billion Yuan in Biomedicine, ~70% in Early-Stage Small Firms

At the recently held Shanghai State Investment Biopharmaceutical Industry Ecosystem Conference, Lu Wen, Vice President of Shanghai State Investment Company, announced that the company has invested over RMB 30 billion in the biopharmaceutical sector through direct equity investments and sub-fund allocations. Early-stage and small-scale investments account for approximately 70% of this total.

As a state-owned capital investment and operation platform focused on three leading industries and future industries, Shanghai State Investment Company adheres to the principles of "investing in the transformation of innovative achievements, industrial ecosystem development, and domestic and international leaders" within the biopharmaceutical field. Its investments are strategically concentrated in areas such as:

• Innovative drugs and medical devices
• Cell and gene therapy
• Brain-computer interfaces
• Synthetic biology
• AI+
• Key segments critical for autonomous control of the industrial chain

Sub-Fund Investments and Industrial Clustering

By the end of August, three major fund-of-funds under Shanghai State Investment Company—the Shanghai State Investment Leading Fund, the Shanghai Future Industry Fund, and the Shanghai State-Owned Capital Mother Fund—had collectively invested in 36 biopharmaceutical sub-funds, totaling nearly RMB 10 billion. This represents an amplification factor of approximately six times, accelerating industrial innovation and clustering.

Innovation Ecosystem Empowerment

Lu Wen stated that Shanghai State Investment Company is actively exploring pilot programs to convert grants into investments. The company has also:

• Co-initiated the establishment of the Qiyuan Public Welfare Foundation
• Collaborated with top-tier Grade-A hospitals, universities and research institutes, new-type R&D institutions, industry players, investment firms, and financial institutions

These efforts aim to build a collaborative platform for transforming research outcomes, promoting deep integration between capital and industry, and jointly fostering a biopharmaceutical innovation ecosystem.

Signing Ceremony and Project Highlights

A centralized signing ceremony for Shanghai State Investment Company's sub-funds and direct investment projects was held at the conference. Among the more than 40 signing entities, the sub-funds include professional leading fund managers such as Qiming Venture Partners and Sino-International Capital. The direct investment project signings encompassed 29 innovative companies, including Kaidi Biosciences and Zhengxu Bio.

Panel Discussion: AI in Biotech

In a discussion titled "How can biotech move beyond 'trend-chasing AI' to achieve technological implementation and financing value," participants agreed that AI-driven drug discovery has passed the proof-of-concept stage and entered a phase where success is determined by real value.

Key takeaways from the discussion included:

• On the technical front: The value of AI lies not in labels but in its ability to solve problems unaddressable by traditional methods—whether breakthroughs from zero to one, such as RNA-targeted small molecules, or multi-fold efficiency improvements in molecular design—all must be substantiated by quantifiable R&D data.
• On the capital front: Primary markets have shifted focus from models themselves to scarce data and implementation capabilities, while secondary markets demand long-term repeatable orders and sustainable business models.
• On valuation: Ultimately, valuations for both types of enterprises will revert to traditional pricing logic based on asset quality and output efficiency.
• Long-term outlook: AI's role in pharmaceuticals mirrors the historical transition from generic to innovative drugs, representing a certain and inevitable path forward.