(Yicai Global) Sept. 17 -- An affiliate of Jiuzhitang, a traditional Chinese medicine producer, will team up with California's Stemedica Cell Technologies to construct a stem cell lab in Beijing. The pair plans to meet the related drug quality standards of the US and EU in a few years.

Jiuzhitang Meike Beijing Cell Technology and Stemedica signed an agreement to establish an investment fund on Sept. 14, financial news outlet Shanghai Securities News reported. The two firms have a goal that the undifferentiated cell production base will meet the Current Good Manufacture Practices of the US and EU in three to five years.

Jiuzhitang Meike will cooperate with top hospitals in China to conduct clinical trials with the product. If the trials have good results, the firm will further research stem cells to be used for treating illnesses related to nervous systems, as well as cardiovascular and cerebrovascular diseases, said Li Zhenguo, chairman of the Changsha-based parent.

"The company is expected to report to the China State Drug Administration about clinical trials during this year, hoping to introduce the first stem cell drug to the domestic market as soon as possible," said Gao Yansong, chief executive of Jiuzhitang Meike.

Editor: Emmi Laine