Qi Zheng Tibetan Medicine’s Lei Jufang: Mergers and Acquisitions Funds Will Accelerate the Innovation Process

　　Lei Jufang, born in 1953, graduated from Xi'an Jiaotong University in 1978. She has been awarded titles such as “National Outstanding Science and Technology Worker” and “Top Ten Inventors of Gansu Province—First Session.” Within the company and even among her media friends, people affectionately call her “Engineer Lei.”

　　Lei Jufang, a member of the National Committee of the Chinese People's Political Consultative Conference and Chairperson of Tibet Qizheng Tibetan Medicine Co., Ltd., recently told reporters from Dazhong Securities Daily and CaiXin.com in Beijing: “The Qinghai-Tibet Plateau is one of the regions in China with the richest biodiversity. Tibetan medicinal materials sourced from this region have remarkable therapeutic effects and have played an important role in safeguarding public health for thousands of years. It is therefore highly necessary to establish a Tibetan medicine resource conservation area centered on Tibet.”

　　Carrying forward ethnic medicines is a responsibility.

　　The State Council recently issued the "Outline of the Development Strategy for Traditional Chinese Medicine (2016-2030)." The "Strategic Plan" clearly defines the direction and key priorities for the development of TCM in China over the next 15 years, serving as a guiding document for advancing the cause of TCM in the new era.

　　On this point, Lei Jufang said that the plan has received an overwhelmingly positive response, and there are many aspects that have truly excited us. I’m very much hoping that these exciting ideas can ultimately be put into practice. As we often say: “We can see the sunshine, but we haven’t yet felt the dew and rain.” In other words, we still hope that these policies will be effectively implemented and eventually turn into concrete, tangible projects.

　　Lei Jufang said: “In 2007, the state issued a regulation allowing finished medicinal products manufactured according to classical prescriptions to be exempted from clinical trials. However, to date, no single classic prescription has been approved for use by the public without undergoing clinical trials. I suggest that the state, in terms of registration and approval, relax the requirement for clinical trials for classic prescriptions, promptly introduce a system for identifying and evaluating these classic prescriptions, and encourage the secondary development and formulation innovation of traditional prescriptions.”

　　“If, in the future, policy-level measures provide a protective space, that will be even more important than project and funding support.”

　　Lei Jufang frankly admitted that 80% of Japan’s raw medicinal materials come from China, yet our domestically produced products aren’t quite as good, and their inheritance within China isn’t as strong either. For our industry, this represents a tremendous responsibility. It is our company’s duty to ensure that our products are just as high-quality as those made in Japan.

　　Innovative Tibetan medicine faces two major challenges.

　　Our reporter asked, “The chairman once proposed innovation in Tibetan medicine. What achievements has Qizhen made in this area over the past year?”

　　Lei Jufang, a member of the National Committee of the Chinese People's Political Consultative Conference and Chairwoman of Qizheng Tibetan Medicine, told reporters, “When you talk about innovation in Tibetan medicine, we face two major tasks.” The first is that many Tibetan medicines currently carry quasi-drug registration numbers. Our first priority in innovation is to ensure that people living in this era—our current doctors and consumers—can recognize and understand these medicines. Therefore, our innovation lies in using modern medical methods to validate these medicines, a process we call evidence-based research.

　　Lei Jufang also gave an example: “Qizheng has a flagship product called Xiaotong Tie. The investment Qizheng has made in academic research and innovation for Xiaotong Tie is probably the largest among all Chinese traditional medicines. At the heart of this product lies a significant innovation— we’ve applied the transdermal absorption theory, which is widely used in mainstream medical fields.”

　　She further explained that both traditional Chinese medicine and Tibetan medicine are essentially complex, mixed systems, each containing roughly dozens of ingredients, with the molecular weight of each ingredient exceeding 10,000. Given the sheer number of Chinese herbal medicines we see, how exactly do they exert their therapeutic effects? The Qizheng team has achieved some significant research findings in this area and published them in high-profile journals, which have played a tremendously important role in advancing research on topical formulations of traditional Chinese medicine.

　　In Lei Jufang’s view, innovation in Tibetan medicine still faces the challenge of overcoming common technical hurdles inherent to the field itself. For instance, traditional Tibetan medicines often suffer from poor disintegration rates, and there’s also the issue of how to ensure the ultimate hygienic quality of these solid dosage forms. These are some of the common technical challenges that the modernization of ethnic medicines must address.

　　Mergers and acquisitions funds will accelerate the innovation process.

　　In 2015, Qizheng Tibetan Medicine issued an announcement stating that the company plans to invest 200 million yuan, together with Tibet Qunying Investment Management Partnership, to establish the Tibet Qunying Investment Fund Partnership (a limited partnership). At the same time, the company intends to invest 2 million yuan to become a limited partner (LP) of Qunying Investment.

　　Regarding Qizheng Tibetan Medicine’s moves in the capital market since last year, our reporter asked again: “Qizheng has invested in a fund worth 200 million yuan. In terms of innovation in Tibetan medicine, will this accelerate the pace of innovation?”

　　Lei Jufang replied, “It will accelerate the pace of innovation. This team is highly professional and well-known in the industry, and they quickly gain a deep understanding of the industry. By establishing this merger and acquisition fund and partnering with a professional team, we can rely on their strong execution capabilities, which will help us make faster progress in all aspects.”

　　Some organizations believe that the company’s participation in establishing an M&A fund aligns with the company’s sustainable development and the interests of all shareholders. By leveraging the professional expertise, social resources, and financial strengths of the fund, the company can—on the one hand—identify, incubate, and nurture outstanding projects in the healthcare sector, providing support for acquiring technologies, projects, and enterprises that are consistent with the company’s strategic development goals. This approach will help the company pursue active, steady M&A integration and external expansion, thereby achieving sustained, healthy, and rapid growth. On the other hand, as a limited partner in the fund, the company will also share in the distribution of profits generated by the fund’s professional investments, enhancing the company’s investment capabilities and strengthening its profitability.

　　Reporting Media: The Mass Securities Journal

　　Report link: http://www.1caixin.com.cn/article-327146.html