German Bayer opens the first Co.Lab in China

(Yicai) September 27 – German pharmaceutical giant Bayer inaugurated a life sciences co-creation platform in Shanghai, marking the fourth Bayer Co.Lab in the world and the first in China.

Bayer Co.Lab China celebrated its grand opening yesterday at the Shanghai Innovation Park (SH-INNO), located in Zhangjiang Science City, Pudong New District.

Bayer Co.Lab is a pioneering global network of life sciences incubators focused on groundbreaking innovations and scientific breakthroughs. With strategic locations in Berlin, Cambridge, Kobe and Shanghai, it connects early-stage entrepreneurs with world-class expertise, resources and global networks, and empowers start-ups by providing state-of-the-art facilities, expert mentoring and a vibrant community where can transform breakthrough ideas into powerful healthcare solutions.

“We are honored to bring the Bayer Co.Lab platform to China,” said Juergen Eckhardt, director of business development, licensing and open innovation at Bayer’s pharmaceutical division. “We hope that through multilateral cooperation we will be able to quickly identify and implement at an early stage – phasing innovations to jointly seek solutions to major health problems and unmet medical needs.

China is a hotspot for innovation, one of the largest pharmaceutical markets, and also one of the markets with the most clinical trials, so it was a natural choice for Bayer to open Co.Lab in the country, specifically in Shanghai, Eckhardt told Yicai.

“Co.Lab in Shanghai is an initiative that will hopefully help bridge the gap between great science and its translation into real-world therapies,” Eckhardt noted. “I think the country needs something more: translating great science into real products and innovations.”

When asked about the characteristics of the Co.Lab in Shanghai, Eckhardt explained that the facility is very similar to the other three, but has a particular focus on cell and gene therapy and oncology, areas where China has demonstrated cutting-edge innovation.

Bayer Co.Lab China has already reached the final stage of contract negotiations with several candidates since it began recruiting in April, said Huang Danjie, vice president of Bayer’s pharmaceutical division and head of Collaborate to Cure Hub-China. “We hope that we will finalize and sign a lease agreement with one of the candidates on that day,” she added.

Bayer Co.Lab China expects to hire a total of eight to 10 biotech startups in the fields of CGT and oncology.

Co.Lab in Shanghai will provide more than just lab space, said Seth Ettenberg, president and CEO of Bayer subsidiary BlueRock Therapeutics. He added that from day one, Bayer will provide recruits with support, mentorship and advice, helping them gain access to the company’s global drug development networks.

“One of the biggest challenges in the field of CGT continues to be manufacturing,” Ettenberg noted, adding that China’s unique system enables innovation through new production methods as well as clinical trials of innovative therapies.

Outside Bayer Co.Lab

Successful Co.Lab partners will eventually grow and outgrow the space Bayer offers at Co.Lab Shanghai. When this happens, they are forced to move out and find a new place. But they could remain partners with Bayer after that, Eckhardt said.

“We hope to conduct business development and licensing transactions, and perhaps even mergers and acquisitions, with several of Co.Lab’s tenants,” he added.

Potential partners must be a “good strategic fit with our own priorities,” which include CGT, oncology, cardiovascular disease, immunology and inflammation, rare diseases and ophthalmology, Eckhardt noted.

“There needs to be a strategic fit with our own capabilities and commercial footprint and complementary technologies or pipeline assets that are a good fit with ours,” Eckhardt noted, adding that cultural understanding is also necessary.

Bayer has invested more than 3.5 billion euros ($3.9 billion) to develop its technology platforms through acquisitions and partnerships around the world. In China, the company has deepened its strategic ties with renowned local academic institutions such as Tsinghua University and Beijing University, and local drugmakers including WuXi AppTec and Jixing Pharmaceuticals.

On September 7, China launched a pilot program allowing foreign companies to engage in the stem cell and gene diagnostics and therapy industry. “This is an important signal for us that regulatory authorities are interested in and support innovation,” Ettenberg noted.

Editor: Futura Costaglione