Exclusive Interview with Jichuan Pharma: How a Domestic Pharma Giant Is Becoming Biotech's New Partner of Choice

Over the past two years, business development (BD) has become a critical focus for biotech companies. Chinese biotechs capable of licensing out assets, particularly those securing global rights through collaborations with multinational corporations (MNCs), have garnered significant attention. While deals with MNCs serve as strong endorsements, transactions with domestic pharmaceutical companies or mid-sized enterprises also offer considerable probability of success and substantial returns.

For domestic biotech companies, traditional pharmaceutical enterprises that have deeply cultivated domestic marketing systems and sales channels while seeking innovative transformation represent another strong partnership option.These traditional pharmaceutical companies may not compete with multinational corporations (MNCs) in the race for disruptive targets, but years of accumulation have endowed them with abundant resources across hospitals at all levels and extensive coverage in retail pharmacies. With mature commercialization capabilities and robust cash flows, coupled with a younger management team, they are also more inclined to engage in deeper collaborations with domestic biotech firms.

For exampleJumpcan, which has recently expanded its pipeline portfolio again, announced that its wholly-owned subsidiary has entered into a collaboration with Zhengxiang Medicine. The two parties will collaborate on the polymerase acidic protein (PA) inhibitor (ZX-7101A) for the treatment or prevention of influenza."Carry out full-process cooperation in product development, production, and commercialization."

Respiratory care is a core strength of Jumpcan. Its two flagship products are Pudilan Anti-inflammatory Oral Liquid, with annual sales of RMB 3.1 billion, and Xiao'er Chiqiao Qingre Granules, with annual sales of RMB 2.6 billion. Leveraging Jumpcan’s mature and extensive end-to-end product expertise in the respiratory and pediatric fields, ZX-7101A holds promising prospects.

This marks another business development (BD) move by Jumpcan, following its collaborations with Hengyi Biopharma on the best-in-class PDE4 inhibitor HPP737 and the protease inhibitor LB1148, as well as with Tianjing Biosciences on eftansomatropin alfa (TJ101). As an established pharmaceutical company with strong cash flow, Jumpcan is seeking new revenue models.Business development (BD) is one of the key means for the company’s transformation: acquiring four products through BD annually has been clearly outlined in the corporate strategy.

In the past, business development (BD) at traditional domestic pharmaceutical companies aimed to directly boost sales revenue. Now, traditional pharma firms, represented by Jumpcan, are undergoing a drastic transformation, with BD serving as their frontline in the pursuit of innovation.This is also closely tied to Jumpcan’s new-generation management team; the current Chairman and Co-General Manager of Jumpcan Pharmaceutical Group are both outstanding representatives of the new generation in Chinese pharmaceutical enterprises.We place great emphasis on the early strategic layout of our innovative product pipeline through independent R&D and product in-licensing, aiming to deliver long-term, sustainable growth drivers for the company.

In the innovation-driven transformation propelled by BD, how can traditional pharmaceutical companies partner with biotechs and leverage collaborations to further advance their transformation?Regarding Jumpcan's recent collaborations, as well as its innovative transformation and future pipeline development,VB New MedicineExclusive Interview withZhang Xieyi, Deputy General Manager of Jumpcan Pharmaceutical Group. Zhang Xieyi joined Jumpcan in 2022, where he is responsible for strategy, business development (BD), investment, and securities affairs. Previously, he held roles at Luye Pharma, Bristol Myers Squibb (BMS), and Roche, overseeing strategy, product line planning, new product launches, and pharmaceutical sales.

VCBeat New Medicine:What are the considerations behind Jumpcan’s collaboration with Zhengxiang Pharma to develop influenza drugs?

Zhang Xieyi:Jumpcan recognizes the substantial patient population base for influenza medications. Furthermore, respiratory medicine and pediatrics are our core competitive sectors, where we possess extensive product expertise. Our initial engagement began in the second half of 2022; while our teams collaborated effectively, assessments of the influenza market and clinical development progress were somewhat impacted by the pandemic at that time.As the spring of 2023 ushered in a peak season for Influenza A, Zhengxiang Pharmaceutical leveraged its robust execution capabilities to seize the opportunity and rapidly complete its Phase III clinical trials.Having evaluated the influenza market landscape in the post-pandemic era, and given the smooth progress of Zhengxiang Medicine’s Phase III clinical trials for ZX-7101A, we believe significant synergies can be realized with this asset. Building on the trust and mutual understanding established during prior communications, both parties moved decisively toward each other and rapidly finalized the collaboration.

VCBeat New Medicine: We have observed that Jumpcan has introduced multiple products over the past two years. What is the current development status of these products?

Zhang Xieyi:The collaboration with Tianjing Bio on etanercept growth hormone has completed Phase III clinical trials. We are awaiting the results and expect to receive top-line data shortly. Progress is proceeding very smoothly, and we remain optimistic about the project’s prospects.2025 is a significant milestone for the enrichment of Jumpcan's product pipeline.Most of the innovative products we have currently acquired through business development (BD) are expected to receive regulatory approval and launch around 2025.

VBInsight: What is Jumpcan’s BD strategy?

Zhang Xieyi:Our BD strategy is long-term oriented, focusing on the sustainable commercial value of products.rather than merely filling the company’s short-term cash flow and profit gaps,or in the short termPush upStock price.After analyzing the company’s own commercialization capabilities, we believe that in addition to its traditional areas of strength—pediatrics, respiratory, and digestive diseases—Jumpcan possesses unique competitive advantages in promoting products for conditions with broad coverage and affecting large populations. Therefore, any product meeting these two criteria will attract our attention. We do not currently plan to enter the oncology sector, primarily because the market is already crowded with numerous companies developing oncology drugs, resulting in intense competition, and secondly, because we lack inherent advantages in this field.

We primarily assess project quality from three dimensions.First is technological certainty,For example, the adequacy and consistency of preclinical and clinical data: whether medicinal chemistry design aligns with pharmacological characteristics, whether pharmacological properties are reflected in clinical data, i.e., whether the pharmaceutical value of the product can be translated into clinical value.Second is the market prospect,For example, epidemiology, unmet needs, pricing, and sales forecasts—i.e., whether the product’s clinical value can be translated into commercial value.Third is the integrity of intellectual property.Furthermore, we place significant emphasis on team execution capabilities and the synergistic chemistry between our respective organizations, as successful post-transaction integration hinges on close collaboration. We seek projects with controllable overall risk and sustainable long-term commercial value, alongside corporate teams committed to enduring, high-integrity partnerships.

Jumpcan has engaged in flexible business development (BD) collaborations with partners, including exclusive licensing, profit-sharing, and co-promotion.We fully respect the specific development needs of biotech companies and strive to establish mutually acceptable cooperation models. Our internal business development (BD) process features clear division of labor: the BD team is responsible for deal sourcing and commercial negotiations; the Strategy Team conducts initial strategic assessments; the R&D Team performs technical due diligence; the Marketing Team evaluates commercial value; and the Legal and Finance Teams provide support in later stages. Each department fulfills its respective responsibilities to efficiently advance BD initiatives.

VCBeat New Medicine: Does Jumpcan primarily seek out projects in the late clinical stages?

Zhang Xieyi:We are also seeking earlier-stage projects; subsequently, we will introduce more Phase I and Phase II clinical products for collaborative development. For instance, the product candidates we are currently evaluating may not reach the market until 2027–2028.We aim to leverage our current business development efforts to secure a pipeline that supports the company’s long-term innovative transformation and value enhancement.

This also places higher demands on its in-house R&D capabilities. Jumpcan is expanding its innovative drug R&D team by recruiting professionals specializing in early-stage research, clinical development, and regulatory affairs, thereby better positioning itself to integrate innovative pipelines acquired through business development (BD).

VCBeat New Medicine: But overall, is Jumpcan Pharmaceutical still more inclined towards a conservative approach?

Zhang Xieyi:For drug candidates that have already entered Phase II and Phase III clinical trials, Jumpcan’s Business Development (BD) team prioritizes greater certainty; nevertheless, the products we identify all possess unique positioning.For example, in 2022, Jumpcan Pharmaceutical entered into a strategic cooperation agreement worth RMB 400 million with Hengyi Biopharma to develop a Class 1 innovative drug—an oral treatment for psoriasis intended to be best-in-class globally. This oral small-molecule PDE4 (phosphodiesterase 4) inhibitor is also the world’s first drug for postoperative recovery of gastrointestinal function (a targeted digestive protease inhibitor), which can effectively shorten hospital stays for surgical patients and address the unmet clinical need associated with the 16 million surgeries performed annually in China. For early-stage assets, we are willing to assume certain development risks in exchange for more substantial commercial value.

Additionally, we are also establishing our own innovative drug fund.For technology platform assets that are at a very early stage or whose pipelines have not yet taken shape, we engage through equity investment and subsequently evaluate other forms of collaboration.

VBInsight: Therefore, there are multiple approaches to assist Jumpcan in its innovative transformation.

Zhang Xieyi:Currently, Jumpcan positions itself as “the best partner for Biotech,” so we are very open and willing to consider various cooperation models, thereby promoting Jumpcan’s innovation and upgrading through collaboration.

Jumpcan’s transformation also targets this “partner” positioning, leveraging our mature and efficient management and operational capabilities to help biotech companies address certain challenges. For instance, during the R&D phase, we hope toAccelerating Patient Enrollment and Operational Quality in Phase III Clinical Trials for Biotech Companies; in terms of commercialization, we will continueEnhancing the Commercialization Capabilities of Innovative Drugs. Overall, Jumpcan excels in operational management and efficiency, while biotech companies have the upper hand in R&D creativity and flexibility. By leveraging their respective strengths, they can help bring products to market quickly and reach patients.

VBInsight: One last question. What changes do you think have occurred in the BD market environment in recent years?

Zhang XieI:The BD market has seen a significant increase in opportunities. More biotech companies are actively considering out-licensing and are willing to offer their products.This directly expands BD’s product portfolio.. Additionally, transaction prices have become more reasonable, aggressive bids are less common, and the overall willingness to engage in business development (BD) collaborations has increased.Everyone is more willing to sit down for negotiations.. These changes are also positive for Jumpcan, creating a favorable environment for us to seize opportunities for collaborative innovation.