Guangzhou Pharmaceutical Holdings Limited (GPHL), a leading pharmaceutical wholesaling and distribution company headquartered in Guangzhou, plans to build a medical instrument innovation park in Guangzhou Development District (GDD).

The news was announced following the signing of a cooperation agreement between GPHL and GDD on Sept 12. Guangzhou Pharmaceutical Baiyunshan International Medical Instrument Innovation Park, once completed, is hoped to lure investments of 5 billion yuan ($770 million) and contribute a total of 50 billion yuan to the district's annual production value.

Guangzhou Pharmaceutical Holdings Limited signs a cooperation agreement with Guangzhou Development District on Sept 12 to build a medical instrument innovation park in GDD. [Photo provided to chinadaily.com.cn] 

Sept 12 also marked the launch of the Guangzhou Zhongcheng Medical Instrument Industry Development Company, the operator of the park, established by GPHL, and leading medical devices provider Osmunda Group and Shanghai Xiecheng Investment Management.

The park will be committed to building a new medical instrument industrial chain featuring innovation, production and services as well as constructing a medical instrument industry cluster. 

The park will focus on medical instrument innovation, high-end medical instrument manufacturing, high-end medical instrument application and global medical instrument launch and exhibition.

The scale of China's medical instrument industry has reached nearly 1 trillion yuan, at an annual increase of 25 percent. However, the sales revenue of medical instrument only takes up about 13 percent of the medical industry, far lower than the average proportion of 50 percent in America and Europe, which indicates that China's medical instrument industry is very promising, according to a spokesperson from GPHL.

Zhou Yawei, director of GDD management committee, said the medical instrument industry is a key emerging industry in Guangzhou and that the project will surely instill new blood to Guangzhou's biological medicine industry.