v3 Chapter 1340： Will surely step into the road to take off (2 in 1 big

Chapter 1339 is bound to take off (two in one chapter)

As far as the global market is concerned, the share of Chinese medicine is after all only small.

The existence of Tai Chi Pharmaceutical is more of a mission to strengthen Chinese medicine.

To make Jiuding Pharmaceutical Group a top pharmaceutical company in the world, it still has to be supported by western medicines. At present, only western medicines can sell well all over the world.

After Tai Chi Pharmaceuticals finished understanding the situation, Xia Yu personally went to the Aomei Pharmaceutical Factory.

Aomei Pharmaceutical Factory is currently the largest western medicine pharmaceutical company in Xiangjiang. After being acquired by Xia Yu, it was even more successful. It dumped Xiangjiang pharmaceutical companies such as Wanhui Pharmaceutical, Jin's Pharmaceutical, Li Wanshan Pharmaceutical, and Yonghong Pharmaceutical. Behind.

In 1983, Aomei Pharmaceutical Factory completely built the first modern GMP pharmaceutical factory in Xiangjiang, and all the equipment is now the most advanced.

The   factory is located in the Yuen Long Science and Technology Industrial Park, so Aomei Pharmaceutical Factory also moved its headquarters into the Yuen Long Science and Technology Industrial Park.

The current president of Aomei Pharmaceuticals is Chen Zeyang, a Chinese from the United States and a PhD in Biochemistry. He is an elite executive recruited by Korn Ferry from Merck & Co., Ltd.

"Chairman, welcome your visit!"

Chen Zeyang wears a pair of glasses and a panax notoginseng type. The most important thing is that he exudes a scholarly temperament.

"Well, first show me the company's financial report for the first half of the year, and then go to the factory."

Xia Yu nodded slightly, succinctly and clarified his intentions.

"Okay, Chairman, please follow me."

After all, Chen Zeyang led Xia Yu to his office, handed over the first half of the financial report to Xia Yu, and then began to make tea.

Xia Yu didn’t talk nonsense, so he browsed directly.

The financial report of Aomei Pharmaceutical Factory is very detailed, and even the sales volume and sales of specific products are made into tables.

The company's products are very rich, including solid preparations such as tablets and capsules; liquid preparations such as solutions, dry suspensions, injections, and semi-solid preparations such as creams, ointments, ointments, and soft capsules.

These drugs are also divided into patented drugs (original research drugs) and generic drugs.

Patented drugs include Aotellin, Aotolin, Aoneng, Aoluo, Aofuqing, Aoting, Aoqing, etc., generic drugs include penicillin, cephalosporin and other drugs.

In the first half of the year, the company’s total revenue was 825 million Hong Kong dollars, R&D investment was 255 million Hong Kong dollars, accounting for 30.9% of turnover, net profit was 176 million Hong Kong dollars, and the net profit margin was 21.3%.

Among them, the revenue of patented drugs was 537 million Hong Kong dollars, the R&D investment was 147 million Hong Kong dollars, the R&D investment accounted for 27.4%, the net profit was 137 million Hong Kong dollars, and the net profit margin was 25.5%.

For generic drugs, revenue was HK$288 million, R&D investment was HK$108 million, R&D investment accounted for 37.5% of revenue, net profit was HK$39 million, and net profit margin was 13.5%.

These data clearly present the current situation of Aomei Pharmaceutical Factory to Xia Yu.

The R&D investment is 255 million Hong Kong dollars, accounting for 30.9% of the company's turnover. In fact, after deducting the net profit and taxes, the turnover accounts for 52.68% of the company's total operating costs!

This ratio is not low!

Aomei Pharmaceuticals' ability to leave other pharmaceutical companies behind is inseparable from its large investment in research and development.

Fortunately, it has developed results and has a huge sales channel terminal under the consortium, so it has a net profit of 176 million Hong Kong dollars.

However, the net profit of 21.3% is not too high in the current global pharmaceutical field, but at the upper-middle level.

Xia Yu knows that some pharmaceutical companies under his Polaris Capital have achieved net profits as high as 40% or 50% after they have produced results!

After reading the financial report, Xia Yu already knew the advantages and disadvantages of Aomei Pharmaceutical Factory.

But he didn't point it out right away. After putting down the financial report and taking a sip of tea, he asked Chen Zeyang to take him to the factory and scientific research department.

Especially the most important scientific research department, Xia Yu listened patiently to the voices of scientific researchers.

Fortunately, since Xia Yu took over the Aomei Pharmaceutical Factory, he, the largest real estate tycoon in Hong Kong, has not treated the talents of his company in terms of housing, and there is no shortage of staff dormitories. Employees who have made outstanding contributions can get the best. First-class dormitories even directly reward housing.

There is no worries about food, clothing, housing and transportation, and researchers can devote themselves to research and development.

However, after visiting the scientific research department, Xia Yu discovered another serious problem in his opinion.

That is the lack of talents and the lack of scientific research projects!

Think about the R&D investment in the first half of the year, which is only more than 41 million U.S. dollars in U.S. dollars.

On this scale of investment, in fact, it means that Xiangjiang can be proud of the crowd, but on a global scale, it is really not enough to watch, just a small role!

Those giants have an annual R&D cost of six to seven billion U.S. dollars, and first-class pharmaceutical companies have two to three billion U.S. dollars in R&D investment.

Aomei Pharmaceuticals, according to the current trend, if Xia Yu does not interfere, there will be no US$100 million in a year.

Without R&D investment, there will be no output. R&D cannot keep up. In the absence of explosive drugs, they will only be pushed farther and farther away by the giants.

This is the status quo in the pharmaceutical field, the threshold is too high!

Not all pharmaceutical companies, like Genentech, a subsidiary of Polaris Capital, are able to develop small blue pills that sell well all over the world.

After a visit, Xia Yu asked Chen Zeyang to elaborate on the development constraints of Aomei Pharmaceutical Factory and his thoughts.

Chen Zeyang does have a gap in his chest.

"Chairman, you can see that the company’s R&D investment costs account for more than half of the company’s total operating costs in drug R&D. In fact, the R&D investment of patented drugs is much lower than the R&D investment of generic drugs. This is because I believe that increasing the revenue share of generic drugs can increase the company’s risk resistance."

"Although 108 million Hong Kong dollars were invested in the first half of the year, these are inputs that have not yet been output. After a few years, the revenue of the generic drug business will really explode, and it is still in the early stage of investment."

"The reason why the relative investment in patented drug research and development is not as high as that of generic drugs is that it is restricted by talents."

"Although Xiangjiang has a certain amount of pharmaceutical R&D talents, the proportion of talents is much lower than that of European and American countries. Although the training of relevant professional talents in various universities has increased, the talents have not been cultivated."

"The lack of high-end talents has resulted in higher risks in the development of more difficult patented drugs than European and American pharmaceutical companies. This is also the key reason why I have increased R&D efforts in the less difficult generic drug business."

Xia Yu nodded slightly, agreeing with his approach.

In the future, the market share of generic drugs will become larger and larger, the proportion of patented drugs will be relatively small, and the situation of patented drugs will become worse with the passage of time.

The market share of generic drugs in the later generations in the United States will be 50 or 60%. In the later generations in the mainland, the market share of generic drugs will be as high as 80% or 90%, and the highest market share will be as high as 95%!

The proportion of generic drugs in later island countries also accounted for more than 80%!

And now in the first half of 1984, the revenue of generic drugs from Aomei Pharmaceuticals accounted for 34.9% of the company's total revenue!

This ratio is low.

It can only be said that before the acquisition of Aomei Pharmaceutical Factory by Xia Yu, the operators were too gambled, and the motivation for scientific research was also more sufficient, always stumbling on patented drugs.

However, it is precisely because of this reason that the profitability of Aomei Pharmaceuticals before the acquisition was relatively low, which made Xia Yu's acquisition cost lower, and it also accumulated more pharmaceutical technology, so that it could have it so soon after taking over. output.

Otherwise, according to the research and development of a new drug, it is generally about ten years, and only a few years are only a few cases with good luck.

"Generic drugs need to increase investment. In this area, do you think there is any way to give Xiangjiang's generic drugs industry a more competitive advantage, and don't just limit it to our company."

Xia Yu asked softly that he wanted to hear the opinions of professionals.

As for the reform direction of the entire Xiangjiang pharmaceutical industry, he already has an idea, but the generic drug needs to be supplemented in particular.

The more developed the generic drug industry, the lower the cost of medicines, and the cheaper the medicines in the hands of patients. This is a matter for the benefit of mankind.

And taking into account the situation of future generations in the mainland, it does need a more developed generic drug industry to support it.

Aomei Pharmaceutical Factory will start first. In the future, the generic drug market in mainland China with a level of 100 billion US dollars will also be able to eat a larger piece of cake.

Chen Zeyang talked freely: "Chairman, I personally don't have a good idea in this regard, but at the end of last year, a landmark event occurred in the US pharmaceutical industry. It was not until the US proposed the "Hatch-Waxman Act" in the first half of this year. It was called the "Drug Price Competition and Patent Term Compensation Law," which touched me a lot."

"Oh?"

"Tell me in detail."

Xia Yu looked at Chen Zeyang with interest.

Chen Zeyang was silent for a moment, and after finishing the draft, he said: "This bill has three core points. One is to extend the patent period of patented drugs to 20 years, protect the interests of the original research drug companies, and stabilize the original research drug companies. Passion for new drug research."

"The second point is to allow generic drug companies to conduct generic drug research before the end of the drug patent period, and at the same time give the first company to launch a generic drug a 180-day market exclusivity period. This allows generic drug companies to monopolize the market. During the period, five to ten times the revenue was obtained, allowing generic drug companies to recover their costs."

"The third point is to simplify the pre-marketing procedures of the drug. You do not need to go through the same approval process as the original research drug. Instead, you only need to provide FDA data to prove that the generic drug is equivalent to the reference drug in terms of learning, and provide data to prove that the generic drug is the same as the reference drug. Bioequivalence between drugs is sufficient."

"This bill balances the balance between patented drugs and generic drug companies. It has an incentive effect for pharmaceutical companies in both fields and increases market competitiveness. It also balances the interests of patients and pharmaceutical companies. In the long run, it can be Let patients enjoy low-cost generic drugs in advance and save money."

"It's just that this bill has just been implemented in the United States, and other countries are still waiting to see its results. The United Kingdom is still indifferent for the time being."

"If HeungKong can introduce a similar bill as soon as possible, the environment of HeungKong's pharmaceutical industry will be greatly improved. It will benefit our company a lot. It can extend the patent period of our company's patented drugs and save the time to market for generic drugs."

"Okay, I see."

"It is not important whether it is implemented in the UK, and Hong Kong also has the power to make independent legislation."

Xia Yu said with a chuckle.

Chen Zeyang understood Xia Yu's subtext, he couldn't help his eyes light up, and a feeling of expectation rose in his heart.

"Okay, Zeyang, I will give you an order now."

"From today until I order the suspension, the company only needs to maintain normal operations without loss. The company does not need excess profits. All the money is invested in R&D and mergers and acquisitions."

Xia Yu’s flirtatious sentence puts the profit of 176 million Hong Kong dollars in the first half of this year and almost the same profit in the second half of this year, totaling more than 350 million Hong Kong dollars, and all of them are invested in drug research and development and mergers and acquisitions.

Chen Zeyang's spirits lifted, his voice trembling a little, and he responded loudly, "Understood!"

Xia Yu talked about some precautions:

"Also, there will be some changes in the Xiangjiang pharmaceutical industry in the future. You need to provide some assistance here. Someone will tell you about specific things."

"In the area of ​​drug research and development, I will also give you a list at that time. The list will make it clear which drugs should not be involved in research and development. I have pharmaceutical companies in other places. Don't create unnecessary competition."

This refers to his Genentech, Amgen, Abbott and Geneva Bojian company invested by Bright Fund in the United States.

The global pharmaceutical market is so big and there are many giants, there is no need for internal friction, but a clear division of labor, united to compete with other pharmaceutical companies.

"Chairman, I will listen to your arrangements!"

……

After leaving from Aomei Pharmaceutical Factory, Xia Yu is ready to work on the Xiangjiang pharmaceutical industry and the big health industry.

First of all, internal adjustments.

His first move is very big, that is, he intends to change the name of Jiuding Pharmaceutical Group, the new name is Jiuding Big Health Group, which is in line with Xiangjiang's development strategy.

Followed by a big move, the spin-off of Jiuding Fitness Company, one of the pillars of Jiuding Retail Group, to become a first-level subsidiary of Jiuding Big Health Group.

Jiuding Fitness Company has two brands, Watsons and Wanning Pharmacy, which rank first and second in the Xiangjiang and Southeast Asian markets. The total number of stores is 525 and 481 respectively.

Jiuding Bodybuilding Company has more than 1,000 stores, and it is precisely because of its huge overseas retail terminals that the sales of Aomei Pharmaceutical and Taiji Pharmaceuticals are so high.

Now that Jiuding Bodybuilding Company is placed under Jiuding Great Health Group, these companies will become brothers of the Yidai compatriots, and the cooperative relationship will naturally be further deepened, which is beneficial to all companies.

Then, Xia Yu ordered Jiuding Big Health Company to set up an excellent medical device company to manufacture medical devices and healthcare devices.

Established Nanshan Health Technology Co., Ltd. to manufacture leisure and fitness sports equipment, including exercise bikes, treadmills, etc.

Established Aixin Health Management Consulting Company, as a third-party service agency and medical insurance agency or directly facing individual needs, providing systematic and professional health management services and providing health consulting services.

Established a health care company, engaged in the production and operation of health care products and nutritious food.

Finally, Lover Products Company was established to produce and sell adult products.

After this set of actions, Jiuding Health Group will cover all segments of the entire health industry.

Next, Jiuding Health Group will become the leader and lead the vigorous development of Xiangjiang Health Industry.

In order to let Xiangjiang's big health industry have a good growth soil.

Xia Yu issued an order to Huo Jianning to let the think tank sort out a plan, which included two aspects.

One aspect is the "Drug Price Competition and Patent Term Compensation Act" mentioned by Chen Zeyang, which made the same or similar bills.

On the other hand, there is no country in the world that currently implements the drug R&D tax deduction policy. The R&D investment cost of pharmaceutical companies can be deducted from the company’s business tax, thereby motivating pharmaceutical companies’ R&D enthusiasm.

Hong Kong cannot be the same as India. India does not recognize drug patent rights, so that it does not matter if it is blocked by the WTO. It does not intend to have an international market at the beginning.

But if Xiangjiang wants to become an international city, it must not do so.

As long as HeungKong passes these two medical industry bills, the cost of HeungKong's pharmaceutical companies will be greatly reduced, operating profits will be improved, and global industry competitiveness will be greatly enhanced.

This environment will also attract major pharmaceutical companies around the world to invest and set up factories in HeungKong, and even move their headquarters here.

For industry leaders who are just starting out and preparing to establish pharmaceutical companies, Xiangjiang will be their key consideration location, which is very attractive to pharmaceutical talents.

But no matter what the future is, Xia Yu’s Jiuding Health Group will enjoy the most at least the initial policy dividend.

As long as the bill is passed and implemented, Xiangjiang's health industry will surely take off.

PS: Two chapters in one. To be honest, after seeing the draft bill today, I was hit hard. I have been working hard to resume the update since last month. Unfortunately, a regulation on the website directly destroyed all my expectations. Even if I am full of words, the support, subsidies and incentive policies are all I have nothing to do with me. I thought I could get one or two thousand subsidies last month, but I didn’t have a dime, and I won’t have it in the future. I’m so disappointed. I only have to subscribe and reward. Up, hey

There is no hope here on the website. I can only call on everyone to support the original version. Support me until I finish writing this book. Thanks!

(End of this chapter)