A pharmaceutical preparation for the treatment of wounds and ulcers in humans and animals and a method of preparation of the same are provided here. The composition consists of an alcoholic extract of Huangqin, Huanglian, Huangbai, Opuntia, Dilong, and .beta.-sitosterol (from Soybean extract), in a vegetable oil-wax base, from where the alcohol is essentially removed by evaporation. The composition is used as a topical ointment for the treatment of wounds in its preferred embodiment. Wounds, in particular those occurring in the skin as second and third degree burns, stasis ulcers, trophic lesions, such as decubitus ulcers, diabetic ulcers, surgical wounds, severe cuts, diaper rash, cracked nipples and abrasions which are commonly resistant to the natural healing process, may be treated with this composition. The application of this combination to wounds greatly accelerates the rate of healing and reduces scarring as the mechanism of action proposed here involves regeneration of skin through stimulation of stem cells that allows healing without substantial scar formation.