"Description: Red biotechnology (RB) refers to the biotechnology applied in pharmaceutical production and it has become the most important part in biotechnology industry. About 60% of achievements in biotechnology in the world are applied in production of bio-pharmaceuticals. At present, RB products mainly include gene recombinant drugs, blood products, vaccines, diagnostic reagents, etc. What is the current production situation of different RB products in China? Driven by its substantial environmental or economic benefits, China’s RB industry has witnessed fast development and has played an increasingly important role in Chinese economic growth. However, the overall development of China’s RB industry remains in growth stage, and still has an enormous gap compared with developed countries. What is the future trend of Chinese RB industry development? What are the relevant supporting policies on Chinese RB industry? What have been the popular cutting-edge technologies in China in recent years? Where are the investment opportunities and what is the investment mode in China? What is covered in this report? - Overview of China’s red biotechnology; - Detailed analysis of each sub-categories of red biotechnologies in China: gene recombinant drugs, blood products, vaccines, diagnostic reagent, etc., in terms of market data, major players, technical suppliers, technologies or R&D situations; - Future prospects of each category of red biotechnologies, with key influencing factors and commercial opportunities - Profiles of major players and research institutes - Related policies and regulations What benefits will you get? - Gain a clear understanding about the industry landscape and latest developments in R&D, production, technology advancement and future trends in China’s red biotechnology; - Keep informed of the precise development situation of key RB products with basic data and latest info; - Gain reasonable and constructive suggestions on market opportunities in China’s RB fields; - Figure out, current trend and future growth prospect of red biotechnology in China; - Know more about how innovative players and research groups are carrying out innovation, collaboration and achieving commercial success in China. "

1. CCM Data & Primary Intelligence
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Future of Red Biotechnology in China
The First Edition
Prepared by:
Guangzhou CCM Information Science & Technology Co., Ltd.
Guangzhou, P. R. China
April 2010
Copyright by Guangzhou CCM Information Science & Technology Co., Ltd. (P. R. China)
Any publication, distribution or copying of the content in this report is prohibited.
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Email: econtact@cnchemicals.com

2. CCM Data & Primary Intelligence
Website: http://www.cnchemicals.com Email: econtact@cnchemicals.com
Tel: +86-20-3761 6606 Fax: +86-20-3761 6968
Description:
Red biotechnology (RB) refers to the biotechnology applied in pharmaceutical production and it
has become the most important part in biotechnology industry. About 60% of achievements in
biotechnology in the world are applied in production of bio-pharmaceuticals. At present, RB
products mainly include gene recombinant drugs, blood products, vaccines, diagnostic reagents,
etc. What is the current production situation of different RB products in China?
Driven by its substantial environmental or economic benefits, China’s RB industry has witnessed
fast development and has played an increasingly important role in Chinese economic growth.
However, the overall development of China’s RB industry remains in growth stage, and still has an
enormous gap compared with developed countries. What is the future trend of Chinese RB
industry development? What are the relevant supporting policies on Chinese RB industry? What
have been the popular cutting-edge technologies in China in recent years? Where are the
investment opportunities and what is the investment mode in China?
What is covered in this report?
- Overview of China’s red biotechnology;
- Detailed analysis of each sub-categories of red biotechnologies in China: gene recombinant
drugs, blood products, vaccines, diagnostic reagent, etc., in terms of market data, major players,
technical suppliers, technologies or R&D situations;
- Future prospects of each category of red biotechnologies, with key influencing factors and
commercial opportunities
- Profiles of major players and research institutes
- Related policies and regulations
What benefits will you get?
- Gain a clear understanding about the industry landscape and latest developments in R&D,
production, technology advancement and future trends in China’s red ⎫biotechnology;
- Keep informed of the precise development situation of key RB products with basic data and latest
info;
- Gain reasonable and constructive suggestions on market opportunities in China’s RB fields;
- Figure out, current trend and future growth prospect of red biotechnology in China;
- Know more about how innovative players and research groups are carrying out innovation,
collaboration and achieving commercial success in China.

3. CCM Data & Primary Intelligence
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Tel: +86-20-3761 6606 Fax: +86-20-3761 6968
Main content:
No. Content Page
Executive summary 1
Methodology & sources 3
I Overview of red biotechnology in China 5
Introduction to red biotechnology 5
Role of red biotechnology in medicine industry 5
Overview of red biotechnology development 6
II Development environment of red biotechnology in China 9
II-1 Macro economic environment 9
II-2 Policy environment 11
II-3 Medicine industry development 13
II-4 Venture capital 14
III Market segments of red biotechnology industry in China 16
III-1 Gene recombinant drugs 16
III-1.1 Erythropoietin（EPO） 16
III-1.2 Insulin 19
III-1.3 G-CSF 24
III-1.4 Rh-GH 25
III-1.5 Interferon 29
III-1.6 Anti-tumor monoclonal antibody 30
III-2 Blood products 36
III-3 Human vaccines 45
III-4 Diagnostic reagent 61
III-4.1 Diagnostic reagent history in China 62
III-4.2 Current production situation in China 63
III-4.3 Producers information of Chinese diagnostic reagent 64
III-4.3.1 Biochemical diagnostic reagent 65
III-4.3.2 Immunodiagnostic reagent 66
III-4.3.3 Molecular diagnostic reagent 67
III-4.3.3.1 PCR reagent 67
III-4.3.3.2 Biochips 68
III-4.4 Forecast 69
III-5 Other red biotechnology based drugs 70
III-5.1 Antibiotic 70
III-5.1.1 Current antibiotic production in China 70
III-5.1.2 Penicillin production technology 71
III-5.1.3 Waste treatment technology 73
III-6 Forecast on supply & demand to the next 5~10 years 74
III-6.1 Forecast on gene recombinant market during 2010~2020 74
III-6.1.1 Supply of gene recombinant drugs during 2000~2020 75
III-6.1.2 Demand for gene recombinant drugs during 2009~2020 77
III-6.1.3 Difference between demand and supply during 2009~2020 77

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III-6.2 Forecast on blood product market during 2010~2020 78
III-6.2.1 Supply of blood products during 2005~2020 78
III-6.2.2 Demand for blood products during 2009~2020 79
III-6.2.3 Difference between demand and supply during 2009~2020 79
III-6.3 Forecast on human vaccine market during 2010~2020 79
III-6.3.1 Supply of human vaccines during 2005~2020 80
III-6.3.2 Demand for human vaccines during 2009~2020 81
III-6.3.3 Difference between demand and supply during 2009~2020 81
III-6.4 Forecast on diagnostic reagent market during 2010~2020 81
III-6.4.1 Supply of diagnostic reagents during 2005~2020 82
III-6.4.2 Demand for diagnostic reagents during 2009~2020 83
III-6.4.3 Difference between demand and supply during 2009~2020 83
IV Cutting edge technology development in China 84
IV-1 Stem cell treatment 84
IV-2 Monoclonal antibody 85
IV-3 Diagnostic reagent 86
IV-4 Vaccine 87
V Geographical distribution of China’s red biotechnology industry 89
V-1 Regional distribution 89
V-2 Introduction to RB industrial clusters 89
V-3 Overview of major RB industrial bases 90
V-3.1 Changsha Natioanl Biomedical Industrial Base 90
V-3.2 Zhangjiang National Biomedical Industrial Base 93
V-3.3 Zhongguancun National Biomedical Industrial Base 95
V-3.4 Shenzhen National Biological Industry Base 99
V-3.5 Changchun National Biological Industry Base 99
V-3.6 Guangzhou National Biological Industry Base 99
V-3.7 Shijiazhuang National Biological Industry Base 100
V-4 Forecast on national biological industry base in the next 5~10 years 100
VI Analysis of main Chinese companies in red biotechnology 102
VI-1 Choice of main Chinese companies in red biotechnology industry 102
VI-2 Analysis on main Chinese companies in red biotechnology industry 104
VI-2.1 Company engaged in biotech drugs 104
- Shanghai FOSUN Pharmaceutical (GROUP) Co., Ltd. 0
VI-2.2 Companies engaged in blood products 107
- Shanghai RAAS Blood Products Co., Ltd. 0
- Hualan Biological Engineering, Inc.. 0
VI-2.3 Company engaged in vaccine 112
- Beijing Tiantan Biological Products Co., Ltd. 0
VI-2.4 Company engaged in bio-engineering drugs 114
- Beijing SL Pharmaceutical Co., Ltd. 0
VI-2.5 Company engaged in antibiotics 116
- Shandong Lukang Pharmaceutical Co., Ltd. 0
VI-2.6 Company engaged in diagnostic reagents 118

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- Shanghai Kehua Bio-Engineering Co., Ltd. 0
VII Main foreign involvement in China’s red biotechnology 123
VII-1 Foreign companies in China 123
VII-1.1 GlaxoSmithKline (China) Co., Ltd. 123
VII-1.2 Pfizer (China) Co., Ltd. 127
VII-1.3 Novartis (China) Co., Ltd. 128
VII-1.4 Sanofi Pasteur (China) Co., Ltd. 131
VII-2 Comparison of foreign companies and Chinese companies 134
VII-3 Forecast on foreign involvement in China in next 5~10 years 135
VII-3.1 Forecast on Novartis expansion in China 136
VII-3.2 Forecast on GSK expansion in China 137
VII-3.3 Forecast on Sanofi-aventis expansion in China 137
VIII Analysis of investment in the next 5 years 139
VIII-1 Investment opportunities in biopharmaceutical industry 139
VIII-1.1 Solid foundation of bio-pharmaceutical investment 139
VIII-1.2 Investment hotspots in China 143
VIII-2 Risk analysis of the investment in China’s red biotechnology 146
VIII-2.1 Risk from international environment 146
VIII-2.2 Risk from domestic environment 146
VIII-2.3 Estimation of bio-pharmaceutical investment risk in the next 5 years 152
IX Profiles of key players in China 155
IX-1 Companies 155
IX-1.1 Gene recombinant drugs 155
IX-1.2 Blood products 160
IX-1.3 Vaccine 164
IX-1.4 Diagnostic reagent 168
IX-2 Research institutes 172
Executive summary:
After about thirty years’ development, China has scored great achievement in red biotechnology
(RB). More and more pharmaceuticals are produced by biotechnology. The increasing use of red
biotechnology in pharmaceutical production have generated both economic and environmental
benefits.
Bio-pharmaceuticals are capturing relatively small market share, with its output value accounting
for around XX% of China’s medicine industry in 2008. However, bio-pharmaceuticals have great
development potential and the growth rate of its output value was higher than that of chemical
medicines and Chinese medicines, with CAGR of XX% in 2004-2009. In 2009, China’s industrial
output value of RB products was around USDXX million, up XX% over previous year.

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- Major bio-pharmaceutical products in China
Gene recombinant drugs
In China, the first recombinant DNA protein drug,α-interferon, was produced by Shenzhen Kexin
Biotech Co., Ltd. Up to XX genetically engineered drugs had been developed in China, and the
total market value reached USDXX billion.
EPO, interferon, CSF, growth hormone and insulin are the main gene recombinant drugs in China.
With requirements for high-level production technology, there are only a few growth hormone
manufacturers in China. But there are more than XX manufacturers in China for other products like
EPO, interferon and CSF and the competition has been relatively intense.
Blood products
After more than ten years’ development, currently China's blood products have been closed to or
reached the international level.
Blood products include more than 20 kinds of products, such as human albumin, immunoglobulin,
coagulation factor, etc. In China, comprehensive utilization rate of plasma has been low and main
blood products in China are human albumin at present.
Human vaccines
Currently, China is the largest vaccine producer in the world, with the most vaccine manufacturing
enterprises. Lost of the enterprises are private ones.
At present, there are around XX human vaccine manufacturers in China. They can produce about
XX species of vaccines to prevent XX species of infectious diseases. In recent years, China’s
human vaccines output has been more than XX million doses.
Diagnostic reagent
Diagnostic reagent can be mainly divided into three categories, biochemical diagnostic reagent,
immunodiagnostic reagent and molecular diagnostic reagent.
Chinese diagnostic reagents industry has been so thriving. Its output value increased from

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USDXX million in 2005 to USDXX million in 2009, with CAGR XX% during this period.
- Production technology
At present, stem cell treatment, monoclonal antibody, diagnostic reagent and vaccine are the four
most important research areas of red biotechnology in China.
In recent years, many Chinese bio-pharmaceutical companies have swarmed to use the foreign
technologies once their patens expired, to chase the immediate profits. These companies always
copy each other’s technologies. Without self-innovation, Chinese bio-pharmaceutical industry still
lags behind foreign countries.
Some Chinese bio-pharmaceutical companies have realized these problems and started
searching ways for development of domestic bio-pharmaceutical industry. The most popular way
is bio-pharmaceutical manufacturer cooperating with biotechnology companies to reduce risk and
investment. The manufacturers outsource the R&D of new products, so they can focus more on
their products’ sales and promotion.
- China’s red biotechnology industry distribution
Owing to the late start-up, bio-pharmaceutical enterprises, most of which are small-scale, are
scattered throughout the country. There are relatively more bio-pharmaceutical enterprises
distributed in Yangtze River Delta region, the Pearl River Delta Region, North China, Central and
Western regions. Total output value of top 4 production provinces, including Shandong, Jilin,
Jiangsu and Henan, reached USDXX million in 2008, accounting for XX% of the national total.
Character of CCM' Report:
The aim of this report is to provide powerful assistance to the strategy group and the management
team in making correct decision as how to penetrate the ever-increasing China market and how to
catch the maximum commercial opportunities. The report is formulated independently by CCM’s
professional market researchers, based on the first-hand and primary data which are analyzed by
scientific methodology, confirmed with both manufacturers/end users/traders and legal authorities,
and presented in a logic way.
Sample pages：

8. I Overview of red biotechnology in China
- Introduction to red biotechnology
Biotechnology has developed fast in the past decades around the world. It mainly includes
pharmaceutical biotechnology (red biotechnology), industrial biotechnology (white
biotechnology), agricultural biotechnology (green biotechnology), marine biotechnology, etc.
………………
- Role of red biotechnology in medicine industry
Compared with the entire pharmaceutical industry and other sub-industries, such as chemical
medicines and Chinese medicine, bio-pharmaceutical accounts for very small proportion. Its
output value constituted only around XX% of the total of China’s medicine industry in 2008.
However, its development potential is very great. Its output value growth rate was higher than
that of chemical medicines and Chinese medicines, with CAGR of XX% in 2004-2009. In 2009,
RB products industrial output value was around USDXX million, up XX% year on year in 2008.
……………..
Manufacturers
Though demand for human albumin exceeds supply, the facts that lack of raw materials and
their price increase, as well as increasing mergers and acquisition, force some blood product
manufacturers to suspend their human albumin production and the number of active ones
decreased during 2004-2007. In recent two years, there have been XX active human albumin
producers in China. Production scale of most of them are small and only several
manufacturers have plasma processing capacity over XXt/a.
……………….
Table III-2-1 Some major human albumin manufacturers in China, 2010
No. Company Plasma processing cap. (tonne)
1 Hualan Biological Engineering Inc. XX
2 Shandong Taibang Biological Products Co. Ltd. XX
3 Chengdu Rongsheng Pharmaceuticals Co., Ltd. XX
4 Sichuan Yuanda Shuyang Pharmaceutical Co., Ltd. XX
5 Shanghai RAAS Blood Products Co., Ltd. XX
6 Shanghai Institute of Biological Products XX
7 Guiyang Qianfeng Biological Products Co., Ltd. XX
Source: CCM International
Some blood products manufacturers have been listed in China, such as Hualan Biological,

9. Shanghai RAAS, Tiantan Biological, etc. In 2008, the sales income of Hualan Biological and
Shanghai RAAS were USDXX million and USDXX million respectively. And Hualan Biological’s
sales income increased to USDXX million in 2009.
……………..
Chinese producers are generally small-scale compared with foreign enterprises. Few of them
can achieve annual sales for diagnostic reagent of more than or close to USDXX million. Less
than XX producers can obtain annual diagnostic reagent sales of more than USDXX million.
The average profit rate has been low due to the price war induced by cutthroat competition and
copying the technology from each other, etc. Average profit rate has decreased from
XX%-XX% to XX%-XX% in the past 5 years.
Table III-4.3.1 Major diagnostic reagent producers in China, 2008
No. Company Abbreviation
Type of
Company
Product
Output value,
USD million
1
Shanghai Kehua Bio-engineering Co.,
Ltd.
Shanghai
Kehua
A share listed
Biochemical diagnostic reagent,
Immunodiagnostic reagent,
Molecular diagnostic reagent
XX
2
Da An gene Co., Ltd. of Sun Yat-Sen
University
Da An gene A share listed
Immunodiagnostic reagent,
Molecular diagnostic reagent
XX
3
Biosino Bio-technology and science
inc.
Biosino H share listed Biochemical diagnostic reagent
XX
4 InTec Products, Inc. InTec American owned Immunodiagnostic reagent XX
5
Shanghai Fosun Pharmaceutical
Group Co., Ltd.
Shanghai
Fosun
A share listed Biochemical diagnostic reagent
XX
6
Sino-American Biotechnology
Company
Sino-American
Biotechnology
American owned
Immunodiagnostic reagent,
Molecular diagnostic reagent
XX
7 Livzon Pharmaceutical Group Inc. Livzon A share listed
Biochemical diagnostic reagent,
Immunodiagnostic reagent,
Molecular diagnostic reagent
XX
8 Shenzhen PG Bioengineering Co., Ltd Shenzhen PG Germany owned Molecular diagnostic reagent XX
Source: CCM International