Germany-based life sciences giant Bayer unveiled Bayer E-Town Open Innovation Center in Beijing on Monday, adding another tier to the company's long-term commitment to Chinese healthcare.

"This is another significant milestone for Bayer Pharmaceuticals in China and further strengthens our strategic presence in Beijing," said Sebastian Guth, chief operating officer of Bayer Pharmaceuticals.

The center, which broke ground in 2023 in the Beijing Economic-Technological Development Area — aka Beijing E-Town — is the first of its kind in China. Its aim is to foster collaboration among industry, academia and research to expedite advancements in cutting-edge sectors of the biopharmaceutical industry.

"We've been in China for 143 years and in the E-Town for 30 years. With the opening of our Bayer E-Town Open Innovation Center, we've established what we describe as 'dual innovation engines' in China, aiming to drive innovation at every stage of our biopharmaceutical value chain," Guth said.

Bayer Co. Lab, which was put into operation in China in 2024, has become an innovation force focusing on fostering early innovation and biotech startups in life sciences. As for the newly opened center, Guth noted its "unique focus on open innovation with an emphasis on medicines that are in clinical development and digital innovation to facilitate the commercial success of products that we bring to the Chinese market."

The COO underscored that the establishment of the innovation center and Co. Lab represents Bayer's commitment to "doubling down on local innovation", saying that "local innovation partnerships will play a key role in our development in China".

Featuring artificial intelligence-powered and data-driven operation models, the innovation center will also be used to improve healthcare providers' engagement on the ground. "The innovation center gives us a platform for showcasing local commercial innovation, for example with our women's health campus and digital clinical service center," said Guth. "We already have strong pharmaceutical commercial operation capabilities in China, and this center helps us to take it to the next level. We're excited to co-develop this with Chinese partners right here in Beijing."

Long-term dedication

As one of the first multinational enterprises to enter the Chinese market, Bayer stands out as the only foreign pharmaceutical company to establish both a product supply center and a research and development center in Beijing. In 1995, the company built the first pharmaceutical production and packaging site in Beijing E-Town and expanded it following a capital expenditure of approximately 100 million euros ($104.83 million) in 2016. The facility is now Bayer's largest pharmaceutical packaging site.

"The biopharmaceutical industry in China is undergoing a remarkable transformation. Ten, 20 or 30 years ago, we saw 'me-too' products that were developed in China but today we are seeing the emergence of first-in-class innovative medicines originating here," Guth said, adding that the country is the second most important innovation hub in the global biopharmaceutical industry.

As China develops new quality productive forces as innovative engines that drive high-quality development, Guth said: "We appreciate China's commitment to innovation, as it ultimately benefits patients. This new strategy is set to further strengthen the life sciences industry as a vibrant engine, especially in cutting-edge technologies. It mirrors our own commitment to innovation as a pharma company."

In a vision of "Treat the untreatable. Cure disease. Offer hope to patients", Bayer has been committed to practicing its dedication to innovation and excellence in healthcare. According to the company, it has brought more than 30 innovative drugs and new indications to China over the past five years.

"China has become a rising innovation hub with rapidly growing innovative drug approvals. We're looking at the country as one of the world's largest contributors to medical advancements and drug pipelines, with a leading position in cutting-edge technologies and modalities like cell and gene therapies," said Guth. "We want to leverage the vibrant innovation ecosystem to bring innovative medicines to the many patients in China."

In 2009, Bayer established its global prescription medicine R&D center in Beijing, and 19 innovative drugs and 36 new drugs or new indications have since been approved in China. Earlier this year, the company filed two new indications, which are expected to be approved soon.

To advance fundamental scientific research in drug development, Bayer has fostered communication and collaboration with local academic institutions. In 2009 and 2014, the company established long-term research partnerships with Tsinghua University and Peking University, respectively. So far, they have conducted over 100 joint research projects in various areas, including new target discovery, disease mechanism studies, drug screening, and innovative chemical synthesis, setting a benchmark for integrated development and innovation in China's pharmaceutical sector.

"We're proud to be a trusted partner for innovators and industry leaders in the local innovation ecosystem across the country. There are still many unmet medical needs in China, and we continue to bring innovative products to the market to meet the needs of Chinese patients," said Guth.

Increasing prospect

Last month, China issued an action plan on stabilizing foreign investment in 2025, highlighting expanding pilot openings in sectors such as telecommunications, healthcare and education. It calls for facilitating the orderly opening of the biopharmaceutical sector, supporting eligible foreign enterprises in participating in pilot programs for segmented production of biologics, accelerating the process of bringing innovative drugs to market, optimizing volume-based drug procurement and enhancing the predictability of medical device product procurement.

"It's heartening to see China's commitment to openness, and these policies create favorable conditions for foreign companies to innovate, invest and grow," said Guth.

"For global pharmaceutical companies like Bayer, this creates positive market expectations and will further accelerate innovative drugs coming to market for Chinese patients.

"These policies encourage local collaboration, and facilitate domestic and foreign companies working together to expand the innovation ecosystem. More Chinese patients will benefit as a result," he added.

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