GPHL Bets Big on Innovation with Hire of BeiGene Veteran Liu Jian, Plans $14B R&D Push Amid Strategic Transformation

Interface News Intern Reporter Niu Mengyuan

Editor of Jiemian News, Xie Xin

During the ongoing FIFA World Cup hosted by the United States, Canada, and Mexico, Norwegian football star Haaland shouted in Chinese“Afraid of getting internal heat? Drink Wang Lao Ji.”, complemented by adapted cheer songs, exaggerated facial expressions, and fire-breathing special effects, for the Wanglaoji international brandWALOVIThe filmed advertisement quickly spread on social media platforms.

Recently, Guangzhou Pharmaceutical Holdings Limited, the parent company of Wang Lao Ji, announced that Dr. Liu Jian has joined the group as its Strategic Scientist to drive breakthroughs in major diseases, build an innovative drug pipeline, and promote the commercialization of scientific and technological achievements. Guangzhou Pharmaceutical Holdings Limited stated that Dr. Liu will become a core member of the group’s innovation and transformation strategy.

Prior to joining Guangzhou Pharmaceutical Holdings Limited, Liu Jian served asBeOneMember of the Global Executive Committee, CEO of the Innovation Center, and Chairman of Biopharmaceuticals, responsible for incubating innovative drugs and participating in the construction of BeOne’s biopharmaceutical production base in Guangzhou. Previously, he worked on new drug development, investment and financing management, and pharmaceutical distribution at multinational pharmaceutical companies such as Pfizer, Sanofi, AstraZeneca, Novartis, and Johnson & Johnson.

Jiemian News on Liu Jian’s Next Key Work Priorities and Guangzhou Pharmaceutical Holdings Limited’s Key Innovative Drug Projects to Be Advanced in the Next Phaseand specific arrangements for R&D investmentAn interview request was submitted to the company, but no response had been received as of press time.

Behind the recruitment of Liu Jian lies Guangzhou Pharmaceutical Holdings Limited’s urgent need to transform toward innovative drugs.

As a core asset under Guangzhou Pharmaceutical Holdings Limited, the listed companyGuangzhou Baiyunshan Pharmaceutical Holdings CompanyThe 2025 annual report disclosed that the company and its joint ventures had a total of more than 160 projects under development, including nine Class 1 innovative drugs: two in Phase I clinical trials, four in Phase II clinical trials, and one at the stage of submitting a marketing authorization application. As of the end of 2025, none of these nine Class 1 innovative drugs had been approved for market launch. Among the phased achievements listed by the company, BYS10 tablets entered pivotal clinical trials, while the approved freeze-dried human rabies vaccine does not belong to Class 1 innovative drugs.

According to Guangzhou Baiyunshan Pharmaceutical Holdings Company Limited’s 2025 annual report, the company’s total annual R&D investment amounted to RMB 695 million, of which R&D expenses were RMB 662 million, representing a year-on-year decrease of 13.37%; during the same period, selling expenses totaled RMB 5.827 billion, a year-on-year increase of 3.69%. The number of R&D personnel was 624, accounting for 2.31% of the total workforce.

Guangzhou Baiyunshan’s revenue scale continues to be primarily supported by its pharmaceutical commerce and traditional product segments. In 2025, the company reported operating revenue of RMB 77.656 billion. The year-over-year revenue growth was mainly driven by the pharmaceutical commerce business, which has a relatively lower gross profit margin, generating revenue of RMB 56.983 billion, accounting for approximately 73.6% of total operating revenue, with a gross profit margin of 5.87%. Revenue from modern Chinese medicine, chemical pharmaceuticals, and natural beverages declined by 6.54%, 4.13%, and 0.34%, respectively. Bio-innovation and consumer health, along with medical services, were consolidated under “Other Businesses,” which generated revenue of RMB 1.499 billion, representing a year-over-year decline of 5.36%. The company did not separately disclose revenue for its bio-innovation business.

2025In that year, Guangzhou Baiyunshan Pharmaceutical Holdings Company received 17 approval notices for supplementary applications regarding the quality and efficacy consistency evaluation of generic drugs, covering various antibiotics and commonly used chemical pharmaceuticals. In the same year, it obtained five drug registration certificates and four approvals for clinical drug trials. This indicates that its core business remains primarily focused on traditional products.

According to the specific product data disclosed by Guangzhou Baiyunshan Pharmaceutical Holdings Company, sales volumes of certain traditional products continued to decline. The company’s 2025 annual report indicated that following the expiration of the national centralized procurement agreement for Cefuroxime Sodium for Injection, the contract was renewed. Due to an increase in the number of selected suppliers, intensified market competition, and a decline in the winning bid price, its operating revenue decreased by 30.01% year-on-year, while production volume and sales volume dropped by 39.78% and 25.85%, respectively. During the same period, sales volumes of other major products, including Xiaochaihu Granules, Sildenafil Citrate Tablets, and the Ajiafen series, also declined by 19.59%, 9.08%, and 7.77%, respectively.

As previously reported by Jiemian News, in August 2022, the National Healthcare Security Administration announced that between 2017 and May 2021, Baiyunshan Tianxin Pharmaceutical, Baiyunshan General Pharmaceutical Factory, and Jingxiutang Pharmaceutical colluded with more than 50 downstream drug distributors. They engaged in cash-out schemes and fund transfers by procuring active pharmaceutical ingredients (APIs) for 87 drugs, including Cefathiamidine for Injection, at artificially inflated prices. Some of these funds were used to bribe medical personnel and specific related parties, as well as to conduct non-compliant promotional activities. The three companies subsequently rectified the prices of the relevant drugs, achieving an average price reduction of over 50%, with certain specifications being delisted from procurement. In 2025, Guangzhou Pharmaceutical Holdings Sichuan Pharmaceutical Co., Ltd. issued an apology statement after its sales personnel provided improper benefits to relevant individuals.

Furthermore, the revenue from the natural beverage business is primarily derived from the Wanglaoji product series, but its growth potential continues to narrow. In 2025, Guangzhou Baiyunshan Pharmaceutical Holdings Company’s subsidiary, Wanglaoji Great Health Company, achieved main business income of RMB 8.786 billion, a slight increase from RMB 8.764 billion in 2024, but still lower than the RMB 10.013 billion recorded in 2023.

Currently, in addition to Wang Lao Ji herbal tea, Guangzhou Pharmaceutical Holdings Limited has also launched products such as Ci Ning Ji, Li Xiao Ji, and Ye Rou coconut juice. However, the group’s 2025 annual report on corporate bonds still lists Wang Lao Ji herbal tea as the primary product in its natural beverages segment. New products have yet to drive significant growth in this segment, with overall revenue from the natural beverages segment declining by 0.34% year-on-year, while gross profit margin increased by 2.21 percentage points to 45.33% due to lower costs.

Amid sluggish growth in its core business, Guangzhou Pharmaceutical Holdings Limited is accelerating its search for new growth drivers, with biological innovation identified as a key future growth sector. The company’s currently disclosed R&D directions include cell and gene therapy, antibody drugs, nucleic acid therapeutics, nuclear medicine, and AI-driven research and development.

Nevertheless, despite proclaiming a slogan of investing over RMB 10 billion to drive innovative transformation,However, since the beginning of this year, Guangzhou Pharmaceutical Holdings Limited’s first major large-scale initiative has not been in the field of innovative drugs.

In May this year, Guangzhou Pharmaceutical Holdings Limited's capital arm proposed to acquire for approximately RMB 2.418 billionDaAn GeneControl Rights. Daan Gene’s main business includes molecular diagnostics, biochemical diagnostics, immunodiagnostics, and medical laboratory services. In 2025, its net profit attributable to shareholders was a loss of RMB 744 million. Upon completion of the transaction, Guangzhou Pharmaceutical Holdings Capital will collectively control 26.63% of Daan Gene’s shares.

Guangzhou Pharmaceutical Holdings Limited currentlyMany initiatives are underway, but as the business portfolio expands, it becomes increasingly critical to clarify priorities for innovative drug development. Simultaneous expansion into pharmaceutical commerce, modern traditional Chinese medicine (TCM), beverages, diagnostic devices, agricultural technology, and healthcare services may create additional revenue streams, but could also dilute R&D resources. Compared with established innovative pharmaceutical companies,Guangzhou Pharmaceutical Holdings LimitedNo sufficiently clear core pipeline prioritization, annual clinical milestones, and product discontinuation mechanisms have been publicly disclosed to date.。