Shanghai State Investment invests over 30 billion yuan in biomedicine, with ~70% in early-stage projects

At the recent Shanghai State Investment Biomedical Industry Ecosystem Conference, Lu Wen, Vice President of Shanghai State Investment Capital Co., Ltd. (SSIC), announced that the company has invested over 30 billion yuan in the biomedical sector through direct equity investments and sub-fund allocations. Approximately 70% of these investments were directed toward early-stage and small-scale enterprises.

As a state-owned capital investment and operation platform focused on the three leading industries and future industries, SSIC is committed to "investing in innovation transformation, building industrial ecosystems, and backing international and domestic leaders." Key areas of focus include:

• Innovative drugs and medical devices
• Cell and gene therapy
• Brain-computer interfaces
• Synthetic biology
• AI+ applications
• Critical links in the industrial chain for self-reliance and control

Sub-Fund Investments and Leverage

As of the end of August, SSIC's three major母基金 (fund-of-funds)—the Shanghai State Investment Pioneer Fund, the Shanghai Future Industry Fund, and the Shanghai State-Owned Capital Mother Fund—have collectively invested in 36 biomedical sub-funds, with total investments nearing 10 billion yuan. This has achieved a leverage ratio of approximately 6x, accelerating industrial innovation and clustering.

Innovation Ecosystem Empowerment

Lu Wen noted that SSIC is actively exploring a "grant-to-investment" pilot program. The company has also co-founded the Qiyuan Public Welfare Foundation and is collaborating with leading tertiary hospitals, universities, research institutes, industry players, investment institutions, and financial organizations to build a collaborative platform for research成果转化 (translation of research outcomes). These efforts aim to deepen the integration of capital and industry and jointly foster a biomedical innovation ecosystem.

Signing Ceremony Highlights

A centralized signing ceremony for SSIC's sub-funds and direct investment projects was held at the conference. Among the more than 40 signing entities, the sub-funds include a number of specialized leading fund managers such as Qiming Venture Partners and Shanghai Industrial Investment Capital. The direct investment project signings cover 29 innovative enterprises, including CasCade Therapeutics and Zhenxu Bio.

AI in Biotech: From Hype to Value

In a panel discussion titled "How Biotech Can Move Beyond 'Trend-Chasing AI' to Achieve Technology Implementation and Financing Value," participants agreed that AI-driven drug development has moved past the concept validation phase and entered a stage where real value determines success or failure.

• Technology perspective: The value of AI lies not in labels but in its ability to solve problems that traditional methods cannot address—whether it is breakthroughs from 0 to 1, such as targeting RNA with small molecules, or multiple-fold efficiency improvements in molecular design. All must be backed by quantifiable R&D data.
• Capital perspective: In the primary market, attention has shifted from the model itself to scarce data and implementation capabilities. In the secondary market, long-term repeatable orders and sustainable business models are required. Ultimately, valuations for both types of companies will revert to traditional pricing logic based on asset quality and output efficiency.
• Long-term outlook: AI in pharmaceuticals is seen as a deterministic path, much like the industry's earlier transition from generics to innovation.