Chinese Herbal Medicine Company ZuoLi Pharmaceutical Expands into Innovative Drug Development Again, Reports Strong Growth in First Three Quarters

　　【Pharmaceutical Network Enterprise News] Recently, Zhejiang Jolly Pharmaceutical Co., Ltd. signed a "Strategic Cooperation Framework Agreement" with Lingyi Biotech Co., Ltd. (Hangzhou), establishing a long-term, comprehensive, and in-depth strategic partnership.
 

According to the announcement released by Zhejiang Jolly Pharmaceutical Co., Ltd., the two parties will cooperate in aspects such as equity, research and development, sales, and products. Through this collaboration of leading forces, Jolly Pharmaceutical will fully leverage the capital advantages of a listed company as well as its strengths in drug R&D, registration applications, and commercialization. Combined with Lingyi Biotech's existing advantages in drug discovery, screening, and R&D, this partnership will create synergy and achieve a win-win situation.
 

Among the cooperation, in terms of equity partnership, Zhejiang Jolly Pharmaceutical Co., Ltd. will invest in Lingyi Biotech (A+ round) through capital increase, becoming its second-largest shareholder. Additionally, after Lingyi Biotech obtains clinical trial approval for its neuroscience-related pipelines (including but not limited to Parkinson's disease), both parties may negotiate for Zhejiang Jolly Pharmaceutical Co., Ltd. to acquire a controlling stake or full equity of Lingyi Biotech at market price, in a manner compliant with regulatory and legal requirements. On the basis of reaching the equity cooperation, Zhejiang Jolly Pharmaceutical Co., Ltd. will assist Lingyi Biotech in establishing a marketing system that meets market demands and obtain the distribution rights or sales agency rights for Lingyi Biotech’s neuroscience products in mainland China.
 

In terms of R&D collaboration, Zhejiang Jolly Pharmaceutical Co., Ltd. and Lingyi Biotech will explore business cooperation for the development of Jolly Pharmaceutical’s targeted products based on their technical platforms, assisting in innovative drug development. The two parties will also establish a neuroscience drug research and development center to jointly develop innovative drugs for neurological diseases such as Parkinson's disease and Alzheimer's Disease (AD).
 

Data shows that Lingyi Biotech is an innovative drug development company for monogenic hereditary diseases, dedicated to the research and industrialization of gene therapy pipelines, focusing on central nervous system and metabolic disease areas with urgent clinical needs.
 

Zhejiang Jolly Pharmaceutical Co., Ltd. is a modern biopharmaceutical enterprise specializing in traditional Chinese medicine. Taking this strategic cooperation agreement as an opportunity, Jolly Pharmaceutical will further expand its presence in advanced therapy fields, particularly in neurology-related pipelines, promote business innovation and synergistic development, and inject new vitality into the sustainable and high-quality growth of the company.
 

It is reported that this is not the first time Zhejiang Jolly Pharmaceutical Co., Ltd. has laid out in the innovative drug field. For instance, in February 2016, Jolly Pharmaceutical, through its subsidiary Jolly Innovative Medical, increased investment in CARsgen Therapeutics (Shanghai) Co., Ltd., strategically deploying innovative Chimeric Antigen Receptor T-cell (CAR-T) therapy for treating solid tumors and hematologic malignancies.
 

In terms of performance, Zhejiang Jolly Pharmaceutical Co., Ltd. achieved overall growth in the first three quarters, with a total revenue of 2.045 billion yuan, representing a year-on-year increase of 39.59%; net profit attributable to shareholders reached 421 million yuan, marking a year-on-year increase of 46.93%. Specifically, sales revenue from the Wuling series increased by 24.88% year-on-year, sales volume of the Bailing series grew by 22.14%, revenue from the traditional Chinese medicine decoction pieces series surged by 51.24%, and revenue from the traditional Chinese medicine formula granules skyrocketed by 175.96%.
 

Currently, Zhejiang Jolly Pharmaceutical Co., Ltd. is conducting secondary development of Wuling Capsules in the AD direction, with a particular focus on research related to Mild Cognitive Impairment (MCI), aiming to achieve a sales target of 2 billion yuan for Wuling Capsules. Lingze Tablets are expected to reach a sales target of 1 billion yuan by leveraging the market opportunities and clinical effectiveness following the centralized procurement of chemical drugs. Bailing Capsules have completed the listing process in 29 provinces, and the company plans to expand its market presence through centralized procurement while pursuing full-channel sales across hospitals, OTC markets, and online platforms. As an essential part of the company’s “One Body, Two Wings” strategy, traditional Chinese medicine decoction pieces and Chinese medicine formula granules will see deeper cultivation in the Zhejiang market alongside accelerated development in other provinces, with the goal of boosting overall performance.
 

The cooperation with Lingyi Biotech this time will help Zhejiang Jolly Pharmaceutical Co., Ltd. strengthen its R&D capabilities in the field of neurology and enhance its marketing layout in this area. This investment aligns with the company's development strategy and will help improve its comprehensive competitiveness and sustainable operating capabilities.
 

Disclaimer: Under no circumstances shall the information or opinions expressed in this article constitute investment advice to any person.