Representatives of Binhu district and Wuxi Biocity sign an agreement to develop a new innovative biomedical project in Binhu district, Wuxi on April 23. [Photo provided to chinadaily.com.cn]

A new innovative biomedical project with an expected investment of 3 billion yuan ($24.55 million) in research and development (R&D) in the next five years was signed on April 23 to develop in Binhu district, Wuxi.

The project is being jointly funded by biomedical technology company Wuxi Biocity, Wuxi Guolian Group, Jinyuan, and investment company Huatai Zijin.

The initial registered capital of the project is 1 billion yuan, and the investors plan to begin IPO (initial public offering) for the project before 2025, aiming for a 50 billion-yuan stock market valuation.

Jia Xiangbo, director of Wuxi Biocity, said the project will focus on the discovery, development, clinical trials, and commercialization of innovative bio-antibody drugs for immunotherapy in tumor diseases and autoimmune diseases.

Jia said operators of the project will cooperate with other biomedical companies including Wuxi Biologics to accelerate drug research, develop independent intellectual property and promote the clinical use and industrialization of new drugs, aiming to turn it into a nationally-leading biomedical project.

The signing ceremony marks Biocity's first attempt at capitalization and signals its determination to develop its business in Binhu and is the latest result to come out of Wuxi's policies to promote the biomedical industry, said Jia.

Jia said the project, as a key project at both the city and district level, will help the biomedical industrial chain to grow, attract more biomedical projects to the district and form industrial clusters.

During the signing ceremony, Xu Feng, director of Binhu district, said that the biomedical industry has great potential, and the district has been striving to ensure services for its development by issuing supportive policies and establishing special funds.

As more and more high-quality biomedical companies develop projects in the district, a complete industrial chain involving new drug R&D, medical equipment and healthcare has formed.

"Antibody drugs have become one of the fastest-growing and most profitable products in the global life and health industry," said Xu.

Xu Ke, chairman of the board of directors of Wuxi Guolian Group, said during the signing ceremony that with the goal of "sharing, co-creation and win-win", Guolian Group will work with Wuxi Biocity to deepen equity investment cooperation and promote drug research, hoping to bring about the rapid growth of new projects and enterprises and boost the upgrading of the industrial structure in Wuxi.