Beijing, July 5 (Reporter Zhu Guowang, Economic Daily – China Economic Net) — "Biopharmaceuticals are a hot spot in pharmaceutical research for the 21st century, and stem cells, in particular, are at the cutting edge of this booming field, with incredibly promising prospects." During the signing ceremony of the "Cardio-Cerebral Health and Anti-Aging Promotion Project," jointly launched on June 30 by the China Association for Anti-Aging Promotion and Jiuzhitang Group, Wu Zuzhe, hailed as the "Father of Hematopoietic Stem Cells in China" and an academician of the Chinese Academy of Sciences, sat down for a brief interview with a reporter from Economic Daily – China Economic Net. As he discussed his optimistic outlook on the future of stem cells, Wu couldn’t help but give a thumbs-up, clearly expressing his strong confidence in the technology’s potential.

Also optimistic about the future of stem cells is Li Zhenguo, President of Jiuzhitang Group. He doesn’t just see great potential—on the contrary, he’s diving into this deep and promising yet unpredictable ocean brimming with both opportunities and hidden challenges. Drawing on the same visionary and persistent spirit that drove him to successfully invent and develop a new drug over the past decade, Li has been investing heavily in stem-cell projects since 2018.

Clearly, Li Zhenguo aims to lead Jiuzhitang down a path that not only no one at Jiuzhitang has ventured down in the past 300-plus years, but also remains largely unexplored across the entire traditional Chinese medicine industry—stem-cell research, a cutting-edge field that major developed nations worldwide are prioritizing as a key area for pharmaceutical innovation and growth.

"We can't let the century-old Jiuzhitang fail under my watch."

In a less-than-ten-minute interview with President Li Zhenguo, there was one question he asked himself three times in succession: How exactly should Chinese medicine companies balance tradition and innovation?

Most people might not understand why he’s so hung up on this issue, but if they knew the history of Jiuzhitang, they’d probably realize where his confusion comes from.

The predecessor of Jiuzhitang, the "Lao Jiuzhitang Pharmacy," was established in the 7th year of the Shunzhi reign period of the Qing Dynasty—1650 AD. Modern-day Jiuzhitang Co., Ltd. was founded in 1999. Upholding the corporate philosophy of "Uniting the Nine Provinces, Sharing Prosperity; Nurturing Excellence Together Like Orchids and Fragrant Herbs," the company primarily focuses on the research, development, manufacturing, and distribution of traditional Chinese medicines. In 2000, Hunan Jiuzhitang Co., Ltd. was listed on the Shenzhen Stock Exchange, successfully entering the capital market. By 2006, "Jiuzhitang" had been recognized by China's Ministry of Commerce as a "Time-Honored Brand of China." More recently, in 2015, Jiuzhitang garnered significant attention within the industry with the strategic restructuring between the century-old brand Jiuzhitang and the innovative Traditional Chinese Medicine enterprise, Mudanjiang Youbo Pharmaceutical.

On one hand, Li Zhenguo expressed full confidence in this restructuring, viewing it as a powerful alliance that will foster complementary resource and competitive advantages, ultimately paving the way for greater growth of Jiuzhitang. Yet, on the other hand, he couldn’t shake off his lingering anxiety, repeatedly emphasizing at various occasions: "I absolutely cannot allow Jiuzhitang—after 300 years of history—to fall apart under my watch."

This sense of unease has prompted Li Zhenguo to continually reflect: How should traditional Chinese medicine enterprises—especially those with a history spanning over 300 years—navigate the path between preserving their heritage and embracing innovation?

Li Zhenguo believes that the first priority is to properly preserve and promote Jiuzhitang's more than 300 years of traditional Chinese medicine culture, while also ensuring innovation is seamlessly integrated based on this rich heritage.

“Centennial Jiuzhitang: Serving Greater Health.” Li Zhenguo said that Jiuzhitang’s true value lies in its dedication to advancing human health—and that simply preserving tradition isn’t enough to succeed in this mission. Instead, we must seamlessly integrate heritage with innovation, using creativity to embody the century-old pharmaceutical company’s sense of responsibility, its enduring mission, and its commitment to making a meaningful impact on society.

Therefore, Li Zhenguo, whose success stems entirely from innovation, has been devoting even more of his energy and attention to this very area.

The innovative determination to "Rather be the head of a chicken than the tail of a phoenix"

Undeniably, Chinese traditional medicine enterprises in our country have inherent limitations when it comes to innovation. Compared with pharmaceutical companies specializing in chemical and biopharmaceutical drugs, these TCM firms generally lag behind in areas such as basic research, high-tech development, and modern pharmaceutical studies, making it difficult for them to meet the demands of transforming the TCM industry.

Before the restructuring with Jiuzhitang, Youbo Pharmaceutical’s flagship product, Shuxuetong Injection, was actually invented and developed by Li Zhenguo. He dedicated a decade of his life—and endured countless hardships—to bring this innovative Chinese medicine to fruition, gaining firsthand insight into the challenges of pioneering in traditional Chinese medicine. Today, Shuxuetong Injection has become one of Jiuzhitang’s top-tier, core products, consistently generating substantial profits for the company and vividly demonstrating the immense value that innovation can deliver.

Even more than two decades after Shuxuetong Injection was launched, Li Zhenguo continues to lead the company in dedicating itself to clinical research on this product, ensuring patients receive safer and more reliable treatments and services. From 2012 to 2015, the company successfully completed the national key scientific and technological project under the "11th Five-Year Plan for Major New Drug Development," focusing on "Research into Key Technologies for Post-Marketing Re-evaluation of Traditional Chinese Medicines." This groundbreaking study employed a prospective, hospital-based, centralized monitoring, and registry-style approach, involving 61 hospitals nationwide and collecting data from 32,546 effective cases. The results revealed that the incidence of adverse reactions to Shuxuetong Injection was an extremely rare 1.97‰, with serious adverse events occurring at an even lower rate of 0.03‰—truly exceptional findings. In April 2019, the "Twelfth Five-Year Plan" national key project on major new drug development—the Shuxuetong Injection Evidence-Based Clinical Study (SPACE)—was unblinded. This landmark study was the first-ever evidence-based clinical trial of a traditional Chinese medicine injection conducted according to internationally recognized gold-standard methodologies. It marked the first multi-center, randomized, double-blind, placebo-controlled trial in the global stroke field, utilizing advanced MRI imaging to objectively assess the recurrence of acute embolic strokes—a critical gap previously unaddressed in secondary stroke prevention. The unblinding results clearly demonstrated that Shuxuetong Injection significantly reduces the risk of stroke recurrence while maintaining a favorable safety profile, underscoring its proven clinical efficacy and pivotal role in the acute-phase treatment of stroke.

From leading Youbo Pharmaceutical to becoming the leader of Jiuzhitang, Li Zhenguo has seamlessly transferred Youbo's innovative DNA to Jiuzhitang.

He first identified the driving force and fundamental purpose behind Jiuzhitang's innovation.

“For the health of humanity, we share a common purpose,” he told reporters. Health is an enduring human aspiration—and yet, it remains a need that has not been fully met. Continuously addressing people’s ever-growing health demands and delivering health products and services that provide maximum value to humanity are at the core of Jiuzhitang’s guiding principles, serving as the driving force behind the company’s innovation.

Stay motivated, and then it's time to find your direction.

“Better to be the head of a chicken than the tail of a phoenix,” Li Zhenguo emphasized, adding that Jiuzhitang has always focused on cutting-edge domestic fields, embracing innovation with fresh perspectives. By seamlessly integrating traditional medicine with precision healthcare, Jiuzhitang is not only reflecting its development approach and strategic positioning for the new era but also signaling a shift toward a high-quality, results-driven business model. That’s why Li Zhenguo is leading Jiuzhitang to turn its innovative focus toward groundbreaking biopharmaceutical areas such as antibody drugs and stem-cell therapies.

In 2017, Jiuzhitang became a shareholder of Beijing Kexin Meide Biomedical Technology Co., Ltd. through an additional investment. The company is currently developing REMD-477, a first-in-class, fully human monoclonal antibody targeting the glucagon receptor—its clinical molecule has already received approval from the U.S. FDA and has completed Phase I clinical trials in patients with Type 1 diabetes, as well as Phase II trials for those with Type 2 diabetes in the United States. Professor Tianpei Hong from Peking University Third Hospital emphasizes that strategies aimed at blocking the glucagon signaling pathway, including glucagon receptor antibodies, represent a critically important research direction in diabetes treatment. If these innovative drugs are successfully approved and brought to market, they will undoubtedly offer significant hope to diabetes patients—especially those with Type 1 diabetes, since, for nearly a century, no new therapies for Type 1 diabetes have emerged beyond insulin itself.

In addition, Jiuzhitang is also advancing research on a novel anticoagulant drug called LFG. This breakthrough addresses critical challenges associated with existing thrombosis treatments—namely, the risk of bleeding and the difficulty in predicting drug metabolism. If the application is successfully approved, this drug will become China's first domestically developed Class 1 new anticoagulant derived from marine organisms and backed by independent intellectual property rights. The company plans to complete clinical trials for the product within the next three to five years.

Moreover, Jiuzhitang's substantial investment in stem-cell research has spearheaded a new direction in regenerative medicine, filling a significant gap in the domestic market.

Showcasing global ambitions with cutting-edge products

Research reports indicate that the global stem cell market has already surpassed $100 billion, with projections suggesting it will reach nearly $180 billion by 2020. This vast and lucrative market has drawn in countless "gold rush seekers."

U.S.-based Stemedica Cell Technologies, Inc. is a company with 14 years of experience in stem cell research and manufacturing. Its stem cell preparation technology and quality control system are among the world’s leading, fully compliant with U.S. cGMP standards and certified with an FDA-approved drug manufacturing license. The company has conducted 16 clinical trials across countries including the United States, Switzerland, and Mexico, targeting a range of conditions such as heart diseases (including myocardial infarction and heart failure), neurological disorders (like stroke and Alzheimer’s disease), diabetes, and degenerative arthritis.

In 2018, Jiuzhitang participated in investing through a merger and acquisition fund that acquired this company, subsequently establishing Jiuzhitang Maker (Beijing) Cell Technology Co., Ltd. As the sole Chinese partner entrusted with Stemedica's stem cell technology, the new company will be responsible for advancing stem cell-related research and business activities.

Stroke is the leading cause of death and disability among adults in China, and it ranks as a major cause of mortality worldwide. According to incomplete statistics, dozens of cell therapy products have already been approved globally, yet stem-cell-based treatments specifically for stroke remain an unmet need. On June 28, the 5th Annual Meeting of the Chinese Stroke Association, along with the Tiantan International Conference on Cerebrovascular Diseases (CSA & TISC2019), was held in Beijing. During the event, Dr. Alex Kharazi, an international stem-cell expert and Chief Technology Officer at Stemedica, delivered a keynote speech titled "GMP Production and Clinical Application of Human Bone Marrow Mesenchymal Stem Cells." The ongoing clinical study demonstrated that Stemedica’s stem-cell therapy for stroke exhibits promising safety and efficacy profiles.

At the signing ceremony on June 30, Dr. Alex Kharazi once again shared this groundbreaking achievement. He explained that Stemedica's proprietary BioSmart stem cell preparation platform mimics the low-oxygen environment of stem cells in the body, enhancing the products' resistance to hypoxia and making them particularly well-suited for treating ischemic heart and brain diseases. Additionally, Stemedica’s bone marrow-derived mesenchymal stem cell production process is fully monitored throughout, ensuring large-scale, standardized, and traceable manufacturing—resulting in unprecedented efficiency in stem cell expansion.

Even more remarkable is that while most other stem-cell research remains largely in the preclinical stage, Stemedica’s stem cells have already advanced into clinical application in several countries. According to Jiuzhitang, the therapy using Stemedica’s human bone-marrow-derived mesenchymal stem cells for treating acute myocardial infarction has now been approved by Kazakhstan’s Ministry of Health for commercialization. Furthermore, Jiuzhitang has signed a collaboration agreement with Kazakhstan’s LLP “ALTACO-XXI” within the Khorgos China-Kazakhstan Cooperation Zone to jointly establish the Jiuzhitang-ALTACO International Medical Center and implement a joint clinical research project. This marks the beginning of the company’s stem-cell products entering full-scale commercial operations—currently a clear leader in China.

Meanwhile, Jiuzhitang Maker is currently constructing its facility in Daxing, Beijing, adhering to cGMP certification standards set by China, the European Union, and the United States. Additionally, the company has signed a "Joint Construction Agreement for a Stem Cell Clinical Research Base" with Beijing Tiantan Hospital, Affiliated to Capital Medical University, jointly establishing the "Beijing Tiantan Hospital–Jiuzhitang Maker Stem Cell Clinical Research Base." Furthermore, the Jiuzhitang International Medical Center will serve as the clinical application demonstration project for the Heart-Brain Health and Anti-Aging Promotion Initiative, launched jointly by Jiuzhitang and the China Association for Anti-Aging Promotion, thereby accelerating research into the clinical applications of stem cells.

The reporter learned that China’s clinical stem cell research has already become one of the most active regions in the world, with notable achievements made in treating certain diseases. However, overall, patient clinical benefits and industry development still lag significantly behind international advanced standards. The stem cell sector also faces several weak links across the entire value chain, meaning the future of this field remains fraught with challenges. Li Zhenguo told reporters from Economic Daily—China Economic Net that, in recent years, stem cell research has garnered increasing global attention, prompting many companies to ramp up their investments. As a result, the field is now characterized by intense competition among players striving to make breakthroughs. In this context, if the government introduces more supportive policies and helps drive the industry toward greater standardization, the companies that can quickly deliver reliable products and establish a strong global presence will be best positioned to achieve the highest levels of commercial success in the stem cell market.

Decades of painstaking, step-by-step research and development into the Shuxuetong Injection have only strengthened Li Zhenguo’s resolve to embrace challenges. "Stem cells are living medicines—and more importantly, they’re designed to serve humanity itself. In today’s medicine, we often find ourselves helpless against many complex and intractable diseases, placing our last hope squarely on stem-cell therapies. Their future is undeniable. That’s precisely why we must get this right, setting industry standards that reflect the century-old Jiuzhitang brand’s unwavering commitment to integrity, quality, and responsibility. Moreover, I sincerely hope that by pioneering this integration of traditional Chinese medicine with precision medicine, we can pave a groundbreaking path for innovation and growth within China’s pharmaceutical industry."