Wanbang Pharmaceutical: A Secondary Transformation Driven by a Single Ginkgo Leaf

　　How can a bearing manufacturing company make a stunning transformation into a pharmaceutical enterprise?

　　After completing its own transformation and embarking on a second strategic shift, how has it managed to continue leading the way to sustained success?

　　Founded in 2008, Wanbangde Group is a high-tech private enterprise primarily focused on the research, development, and manufacturing of pharmaceutical APIs and their formulated products. The company boasts three core industries—pharmaceuticals, bearings, and medical equipment—and has earned recognition as a national-level high-tech enterprise, a China Famous Trademark enterprise, and one of the top 10 industrial enterprises in Wenling City.

　　Starting in 2009, it has grown annually at a steady pace of 50%, with sales climbing from 200 million yuan in 2012 to 350 million yuan in 2013—and this year, sales are expected to surpass 1 billion yuan. But what exactly is the guiding philosophy behind its remarkable ability to maintain such robust growth momentum?

　　The Transformation Journey of a Ginkgo Leaf

　　Zhejiang Wanbang Pharmaceutical Co., Ltd. is located in the Wenling City Economic Development Zone. Stepping into its clean and tidy sterile workshop, reporters observed that inside the tightly sealed, conveyor-belt environment, tiny black pellets—each about the size of a grain of rice and made from ginkgo leaves—were being continuously packaged into slender strips under a fully automated production line, before finally being boxed and packed into cartons.

　　"These are four newly installed automated Ginkgo biloba droplet pill packaging lines at Wanbang Pharmaceutical this year, each requiring an investment of 12 million yuan. 'Each line needs only four workers—so six lines will free up 300 employees in total. Once all six lines are fully operational, the company will achieve an annual production capacity of 6 billion pills,' Wanbang Pharmaceutical’s Chairman and General Manager Zhao Shouming told reporters."

　　Ginkgo Biloba Dropping Pills are a star product of Wanbang Pharmaceutical. This dropping-pill formulation bypasses liver metabolism, allowing for direct absorption through capillaries, making it a relatively safe medication. As an upgraded, modernized oral dosage form of traditional Chinese medicine and a first-line treatment for preventing and managing cardiovascular and cerebrovascular diseases, Ginkgo Biloba Dropping Pills have increasingly gained favor in the market. The product has been successively included in the National Protected Varieties of Traditional Chinese Medicine, designated as the nation’s exclusive manufacturing variety, and listed in the National Essential Medicines Catalogue. Notably, no other countries currently offer ginkgo leaf preparations in the convenient droplet-formulation type.

　　However, surprisingly for everyone, Wanbang's first transformation was a shift from machinery to the pharmaceutical industry.

　　The predecessor of this sizable, near-listed company was Wanbang Bearing Co., founded in 1990 and specializing in the production of bearing products that were once exported to more than 30 countries and regions. In August 2002, Wanbang strategically restructured its business by decisively acquiring the state-owned enterprise Wenling Pharmaceutical Factory, subsequently establishing Zhejiang Wanbang Pharmaceutical Co., Ltd.

　　A tiny ginkgo leaf laid the foundation for Wanbang Pharmaceutical's growth. From research and development to production and, ultimately, expansion, the company has steadily advanced over nearly two decades of perseverance.

　　Before securing the approval number for Ginkgo Leaf Droplets, a well-known pharmaceutical company in northern China had offered 20 million yuan to acquire the transfer rights to the new drug. For Wanbang, which was just getting started, 20 million yuan was a substantial sum—but after careful consideration, Zhao Shouming ultimately turned down the deal. Having endured the "protracted battle" of the bearing anti-dumping case, he deeply understood that for a company to survive and thrive, it must have long-term growth goals, competitive market positioning, cutting-edge, high-tech core products, and—crucially—its own proprietary intellectual property rights.

　　Currently, Wanbang Pharmaceutical holds stakes in eight subsidiaries, including Wenling Tongda Fine Chemical Co., Ltd., Hunan Lushan Natural Plant Pharmaceutical Co., Ltd., Zhejiang Zhengyi Pharmaceutical Co., Ltd., and Jiangsu Bescon Pharmaceutical Co., Ltd. The company boasts 198 approved drug production licenses and already has 60 varieties—comprising 76 product specifications—listed in the 2012 edition of the National Essential Medicines List, while 69 of its products are included in the National Affordable Medicines Program. Notably, Ginkgo Biloba Dropping Pills achieved sales of 16 million bottles in 2013, with projections reaching 30 million bottles in 2014 and an ambitious target of 50 million bottles by 2015.

　　Second Transformation: What’s Driving Wanbande to Lead the Way to Success?

　　The launch of the new product Huperzine A has ignited Wanbang Pharmaceutical’s engine for a second leap forward. Huperzine A, dubbed "nationally original and internationally pioneering," previously earned top honors at the 3rd National Invention Exhibition—winning the Gold Award—as well as the Gold Medal at France’s Eureka International Exposition and the State’s Second-Class Award for Invention. It has now been officially included in China’s key national innovation projects.

　　It ranks alongside donepezil and memantine as one of the global "big three" drugs used to treat Alzheimer's disease. Notably, huperzine A is the only one developed in China with full intellectual property rights—it’s a product derived entirely from traditional Chinese herbal medicine.

　　Wanbang Pharmaceutical is the first company in China to receive drug registration approval for huperzine A, the active pharmaceutical ingredient. "Huperzine A has successfully overcome key technical barriers, transitioning from its original extraction process—entirely derived from traditional Chinese medicine—to a fully synthetic method, significantly reducing production costs," Zhao Shouming proudly told reporters. "Moving forward, our goal is to develop a comprehensive product line based on huperzine A."

　　Wanbang also plans to leverage its existing portfolio of 198 products in the areas of national essential medicines and affordable drugs, aiming to cultivate 10 individual products—each generating over 100 million yuan in revenue—over the next three years. These groundbreaking innovations will undoubtedly give Wanbang the momentum needed for even greater growth and expansion.

　　In addition to the continuous research and development and launch of new products, the transformation of our sales model has also become a driving force behind Wanbang's growth and expansion. In September 2013, Wanbang Pharmaceutical’s sales headquarters returned to Wenling, where the company now boasts a sales team of nearly 2,000 members nationwide. "The Wenling Municipal Party Committee and Government have been incredibly supportive, introducing tailored policies to help us thrive," said Zhao Shouming. "As a company, we’re confident about our future prospects."

　　The day after the interview, he’ll be heading straight to the United States. "I’ll spend a month there in July conducting preliminary research for the internationalization of our formulation. We’ve already secured the patent for huperzine A and have begun preclinical preparation work, aiming to submit an application to the U.S. FDA soon—setting Wanbang’s formulation products on the path to global expansion."

　　Leading transformation and upgrading through technological innovation

　　This year, Wanbang has invested 40 million yuan in developing new products and enhancing its technological capabilities. Building on its existing strengths, the company is placing greater emphasis on innovation and technology. Developing innovative, high-tech drugs and specialty medications that meet market demands has become the essential path for Wanbang Pharmaceutical’s growth.

　　The company has recruited several senior engineers with extensive practical experience to serve as technical leaders, forming the Wanbang Pharmaceutical Cardiovascular and Cerebrovascular Drug Research & Development Center. Currently, the center is equipped with world-class pharmaceutical equipment for advanced Chinese medicine extraction, separation, and refining processes, along with over 200 sets of cutting-edge imported instruments—including U.S.-made Waters high-performance liquid chromatography systems, gas chromatographs, and polarimeters. Additionally, the center boasts 35 professional technicians holding doctoral, master’s, or senior-level titles, 138 science and technology personnel with at least an associate degree, and a dedicated team of 79 R&D professionals.

　　In 2012, Wanbang Pharmaceutical R&D Center established a long-term industry-academia-research collaboration with Zhejiang University of Technology, focusing on developing new products and providing technical innovation consulting for existing ones. Additionally, the center has maintained ongoing technical partnerships with several organizations, including Zhejiang University and Hefei University of Science and Technology Biotechnology Co., Ltd.

　　Currently, the company has independently developed and launched several innovative pharmaceutical products, including Ginkgo Biloba Dropping Pills, Risperidone Dispersible Tablets, a series of Huperzine A products, plastic-based ampoule injection solutions, inhalation liquid formulations, and Qianlengta Controlled-Release Tablets and Dropping Pills. These products demonstrate therapeutic efficacy across a wide range of medical fields, such as cardiovascular and cerebrovascular diseases, neurological disorders, respiratory conditions, digestive system ailments, immune system-related issues, and gynecological health concerns.

　　Last year, Wanbang achieved total sales of 350 million yuan, paid 57 million yuan in taxes and profits, and generated a profit of 67 million yuan. Meanwhile, from January to May of this year, Wanbang’s sales already surpassed 220 million yuan, with tax contributions reaching 47 million yuan.