Chongqing aims to become a novel drug hub by 2027 with new clusters and annual approvals

From factory floors to biotech labs: Chongqing bets on novel medicines

Chongqing, a megacity in southwest China known for heavy industry, has laid out an ambitious plan to move up the value chain in life sciences. The municipal government wants one to three new to world medicines approved each year by 2027. The blueprint calls for three industry clusters that link companies, universities and research institutes, and a faster path from discovery to patients. The plan is part of a national campaign for science and technology self reliance that seeks deeper domestic capacity in drug discovery, development and manufacturing.

China is drafting its next five year plan (2026 to 2030) with a strong focus on strategic technologies and health care. Cities across the country are carving out roles in this push. Hefei is moving into electric vehicles, Shenzhen into artificial intelligence, and Hangzhou into robotics and advanced manufacturing. Chongqing, long a manufacturing base, signaled its shift last year when regulators cleared the citys first Class 1 innovative drug for psoriasis. Class 1, in the wording of the National Medical Products Administration, is a novel compound with a defined structure, proven pharmacology and clear clinical value that has not been sold anywhere in the world.

What the new plan promises

The 25 point policy package released by the city lays out tools across the full life cycle of a medicine. It pairs funding and tax support with shared platforms for clinical research, testing and manufacturing. It also aims to coordinate data, procurement and hospital use so that promising therapies can advance without cutting corners on safety.

City officials framed the effort as a bid to close gaps in core technologies and speed up product timelines. In a public notice, the municipal government emphasized the direction of travel. It said:

“Focusing on breakthroughs in core technologies for innovative drugs and accelerating product development, we will continuously optimise the industrial innovation system.”

Regulatory targets and timelines

Chongqing’s roadmap translates political intent into measurable targets that industry can plan around:

• By 2027, one to three innovative drugs approved for market launch each year.
• Three innovative drug clusters to pool research and development and enable technology transfers.
• Leadership roles for high quality enterprises, research institutes and universities in building those clusters.
• Support to master core technologies across discovery, delivery and manufacturing.
• A faster path from lab to clinic through shared infrastructure and service platforms.

How reimbursement and market access will work

Breakthrough medicines reach patients only when payment systems adapt. Chongqing has issued measures to align medical insurance, hospital formularies and digital tools with the city’s innovation goals. Health insurance departments will maintain direct communication channels with innovative drug developers and guide them through national negotiations for the basic medical insurance drug catalogue. Products with strong clinical value can be recommended for coverage under local fast track programs. Designated hospitals will be able to include some new drugs in their formularies based on clinical need, then supply them through both hospital pharmacies and qualified retail pharmacies, a model often called the dual channel. The city also plans to use electronic prescription platforms so patients can purchase covered medicines online and have settlement handled seamlessly.

Why it matters to patients and hospitals

Reimbursement rules shape adoption. If a new therapy is quickly listed for coverage, patient out of pocket costs fall and uptake in hospitals increases. Chongqing also aims to improve the mechanism for diagnosis related groups, the system that pays hospitals a set amount based on a patient’s condition rather than item by item billing. Better DRG design can reward the use of effective therapies that reduce complications and shorten stays. The policy package also calls for guiding realistic market prices for medicines included on innovation lists, which helps hospitals budget and gives companies clear signals as they plan launches and scale up production.

From psoriasis biologic to a growing pipeline

Momentum is not starting from zero. In 2024, a local team at Chongqing Genrix Biopharmaceutical secured approval for an injectable therapy for moderate to severe psoriasis that targets IL 17A. As a Class 1 drug, it is a new compound discovered and developed in China. Officials highlighted the approval as a step toward greater domestic capacity in complex biologics and a move that can reduce reliance on imports for advanced treatments.

Chongqing International Biological City, located in Banan District, has become the anchor for much of this activity. Local leaders say they are building an integrated ecosystem that spans research, development, manufacturing and clinical application. The Zhirui Bio Medical Industry Park has attracted large projects with a reported investment of 13 billion yuan, drawing in more than 130 initiatives across related fields. The city counts 15 listed pharmaceutical companies and 271 high tech enterprises. An industry alliance launched in mid 2024 to pool resources, align standards and share data. Officials have set goals for the Biological City to attract more than 200 enterprises and exceed 150 billion yuan in industry scale by 2027.

Projects extend beyond dermatology. Kerun Biopharm, a Chongqing based company, reports progress on recombinant human nerve growth factor eye drops designed to support corneal nerve repair. The firm is also advancing a recombinant carboxypeptidase G2 injection intended to reduce the toxicity of chemotherapy while preserving anticancer effect. These examples point to a broader pipeline in ophthalmology and oncology, two fields where unmet medical needs are large and technology platforms in China have matured rapidly in recent years.

What makes Class 1 status stand out

Class 1 status signals a first in class product that has not been marketed globally. Achieving it requires complete evidence on chemistry, manufacturing and control, as well as robust clinical data. The designation matters for companies, investors and hospitals because it indicates a high bar for novelty and clinical value, not just an incremental upgrade to an existing therapy.

Western biomedicine corridor links lab and clinic

Chongqing’s push aligns with a wider regional strategy. Together with neighboring Sichuan, the city is developing a western biomedicine innovation corridor. Academic and clinical leaders describe a pipeline of more than 100 joint projects by 2025 that aims to speed the transformation of ideas into patient care. At the center is Jinfeng Laboratory, the largest independent life sciences and health research center in western China. A joint key laboratory for pathology testing and diagnosis brings together specialists from top hospitals and universities, uniting more than 300 experts in one network.

AI brings speed and precision

Digital tools are part of the corridors toolkit. Research teams in the region report advances in using artificial intelligence to detect early lung cancer, classify tumors and analyze the tumor microenvironment with spatial multi omics data. A new digital slide scanning system has entered the market through the city’s innovation directory for intelligent medical equipment. Researchers say an experimental animal pathology AI system can automatically identify tumor areas in tissue slides, cutting review time and reducing the risk of human error. Intraoperative imaging that once took about an hour can be completed in roughly five minutes in pilot settings, a change that helps surgeons make time sensitive decisions.

Professor Xu Chuan, a leader at Jinfeng Laboratory and director of an oncology institute in Chengdu, described the cross city collaboration in simple terms:

“1+1>2.”

Joint projects, shared data resources and multi center clinical trials are building a practical bridge between laboratory work and real world care across the two cities.

Manufacturing and quality systems give industry a base

Drug innovation only matters if companies can make products at scale and to exacting standards. Chongqing’s industrial base helps on that front. Porton Pharma’s Changshou site operates as a good manufacturing practice facility for small molecule drug substances, with reactor volumes that range from small batches to metric tons across 11 round the clock workshops. The plant handles complex chemistry, including cryogenic operations down to minus 90 degrees Celsius, high temperature reactions, hydrogenation up to 60 bar and flow manufacturing. Quality systems at the site have passed inspections by regulators including the National Medical Products Administration, the United States Food and Drug Administration, the Pharmaceuticals and Medical Devices Agency of Japan, the World Health Organization and the European Medicines Agency.

For biopharma developers, access to partners with this mix of scale, quality and regulatory readiness can shorten timelines from clinical proof of concept to commercial supply. It also supports technology transfers within the planned clusters, which is central to the city’s effort to move candidates from the lab to consistent, compliant production.

International companies see momentum in China

Global drug makers increasingly view China as a source of science and as a market that expects faster access to new therapies. Partnerships, local incubators and near simultaneous launches are now common. Industry executives point to improvements in the business environment and the depth of local talent as reasons to expand collaborations.

Sean Shan, senior vice president of Takeda and president of Takeda China, has described the country as a global innovation hub for digital health. He said the opportunity stems from the size of the market, strong digital infrastructure and active partners in both tech and health care.

“We believe China has quite a unique opportunity for digital transformation.”

Chongqing is also raising its profile through industry gatherings. The 2025 Spring session of the China International Pharmaceutical Machinery Exposition opened in the city with 1,686 exhibitors from 24 countries and regions, filling all 15 halls across 180,000 square meters. A dedicated area for biopharmaceutical equipment showcased advances from more than 100 firms. Conference tracks covered synthetic biology and biomanufacturing, while buyer delegations and supplier matchmaking sessions highlighted practical demand for new platforms and equipment. Events like this reinforce Chongqing’s place in the national network that links research, manufacturing and market access.

Challenges to handle next

Chongqing’s targets are demanding. Novel drugs take years of discovery work, multiple stages of clinical testing and careful manufacturing scale up. Talent competition is intense, especially for seasoned clinical development leaders, regulatory experts and bioprocess engineers. Companies will need to manage complex supply chains, protect data in digital health initiatives and navigate export controls and investment reviews that affect cross border research and licensing.

Policy makers also face the task of aligning hospital incentives with innovation. Diagnosis related group payments must reward effective therapies while discouraging unnecessary spending. Pricing and reimbursement decisions need to balance access with sustainability. Success will hinge on how well the city’s clusters coordinate trials, generate high quality evidence, meet global quality standards and secure routes to both domestic and overseas markets.

What to Know

• Chongqing set a goal to secure one to three novel drug approvals each year by 2027 and to build three industry clusters for innovative medicines.
• The city’s 25 point plan links funding, shared platforms and hospital use to speed products from lab to patients while keeping safety standards.
• Health insurance measures include guidance for national catalogue negotiations, dual channel supply and electronic prescription platforms.
• Local innovation is picking up, with an IL 17A psoriasis biologic approved and dozens of drug candidates in clinical stages.
• The Sichuan Chongqing biomedicine corridor has more than 100 joint projects planned by 2025, with AI improving diagnostic speed and accuracy.
• Manufacturing strengths include GMP plants capable of complex chemistry and inspections by major global regulators.
• Global pharma firms see China as a growth engine and a source of new science, with growing partnerships and investment.
• Key challenges are talent, long development cycles, careful pricing and reimbursement, and meeting strict quality and data standards.