The First Thousand Three Hundred and Forty Chapters Will Definitely Enter the Road to Take Off (2 in 1 Chapter)
Chapter 1339 Will definitely enter the road to take off (two in one chapter)
As far as the global market is concerned, the share of traditional Chinese medicine is only a small one after all.
The existence of Tai Chi Pharmaceutical is more of a mission to strengthen traditional Chinese medicine.
To make Jiuding Pharmaceutical Group a top pharmaceutical company in the world, it still has to be supported by western medicine. At present, only western medicine can sell well all over the world.
After Taiji Pharmaceutical learned about the situation, Xia Yu went to Aomei Pharmaceutical Factory in person.
Aomei Pharmaceuticals is currently the largest western medicine pharmaceutical company in Xiangjiang, and after being acquired by Xia Yu, it is even more outstanding, throwing Wanhui Pharmaceutical, King's Pharmaceutical, Li Wanshan Pharmaceutical, Yonghong Pharmaceutical and other Xiangjiang pharmaceutical companies. behind.
In 1983, Aomei Pharmaceutical Factory completely built the first modern GMP pharmaceutical factory in Hong Kong, and all the equipments are the most advanced now.
The factory is located in Yuen Long Science and Technology Industrial Park, so Aomei Pharmaceutical also moved its company headquarters into Yuen Long Science and Technology Industrial Park.
The current president of Aomei Pharmaceuticals is Chen Zeyang, a Chinese in the United States and a doctor of biochemistry, an elite executive hired by Korn Ferry from Merck.
"Chairman, welcome your visit!"
Chen Zeyang wears a pair of glasses and has a three-seven haircut. Most importantly, 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 for a walk."
Xia Yu nodded slightly, speaking concisely and explaining his intentions.
"Okay, Chairman, please come with me."
After all, Chen Zeyang led Xia Yu to his office, handed over the financial report for the first half of the year to Xia Yu, and then began to make tea.
Xia Yu didn't talk nonsense and browsed directly.
The financial report of Aomei Pharmaceutical Factory is very detailed, and even the sales volume and sales volume of specific products are made into a table.
The company's products are very rich, including solid preparations such as tablets and capsules; liquid preparations such as solutions, dry suspensions, and injections; semi-solid preparations such as creams, ointments, ointments, and soft capsules.
These drugs are also divided into patent drugs (original drugs) and generic drugs.
Patented drugs include Aotailing, Aotofen, Ao Neng, Aoluo, Aofuqing, Ao Ting, Aoqing, etc., and 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 the turnover, and the 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, and the research and development investment was 147 million Hong Kong dollars, and the research and development investment accounted for 27.4%.
Net profit was HK$137 million, with a net profit margin of 25.5%.
For generic drugs, the revenue was 288 million Hong Kong dollars, the R&D investment was 108 million Hong Kong dollars, the R&D investment accounted for 37.5% of the revenue, the net profit was 39 million Hong Kong dollars, and the net profit margin was 13.5%.
These data clearly presented the current situation of Aomei Pharmaceutical Factory to Xia Yu.
R&D investment of 255 million Hong Kong dollars accounted for 30.9% of the company's turnover. In fact, after deducting net profit and taxes, the turnover accounted for 52.68% of the company's total operating costs!
This ratio is not too high!
The ability of Aomei Pharmaceutical to leave other pharmaceutical companies behind is inseparable from its large investment in research and development.
Fortunately, the research and development has achieved results, and it 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 it is only at the upper-middle level.
Xia Yu knew very well that some of the pharmaceutical companies under his Polaris Capital had achieved results, and some of the net profits were as high as 40 to 50 percent!
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 the scientific research department.
Especially in the most important scientific research department, Xia Yu patiently listened 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 his company's talents badly in terms of housing, and there is no shortage of staff quarters. Employees who have made outstanding contributions can get the best. First-grade dormitories, or even direct reward housing.
There is no need to worry 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, there is a lack of talents, and scientific research projects are not rich enough!
Think about the R&D investment in the first half of the year, which is only more than 41 million US dollars in US dollars.
With an investment of this scale, in fact, Hong Kong can be proud of the crowd, but in a global context, it's really not enough to see, it's just a small role!
Those giants have an annual R&D cost of 6 to 7 billion US dollars, and the first-class pharmaceutical companies have 2 to 3 billion US dollars of R&D investment.
Aomei Pharmaceutical Factory, according to the current trend, if Xia Yu does not interfere, it will not have 100 million US dollars a year.
If there is no R&D investment, there will be no output, and R&D cannot keep up. If there are no explosive drugs, they will only be left behind by those giants.
This is the status quo in the pharmaceutical field, the threshold is too high!
Not all pharmaceutical companies have been able to develop little blue pills that sell well around the world like Genentech, a subsidiary of Polaris Capital.
After some visits, Xia Yu asked Chen Zeyang to explain the development constraints of Aomei Pharmaceuticals and his thoughts.
Chen Zeyang does have a gully in his chest.
"Chairman, you can see that the company's R&D investment in drug R&D accounts for more than half of the company's total operating costs. In fact, if you break it down, the R&D investment of patented drugs is much lower than that of generic drugs. This is because I believe that increasing the revenue share of generic drugs can improve the company's risk resistance."
"Although 108 million Hong Kong dollars was invested in the first half of the year, these are all inputs that have not yet produced. 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 the research and development of patented drugs is not as high as that of generic drugs is mainly due to the constraints of talents."
"Although Xiangjiang has a certain number of pharmaceutical R&D talents, the proportion of talents is much lower than that of European and American countries. Although the training of relevant professionals in various universities has increased, the talents have not yet been cultivated."
"The lack of high-end talents has led to higher risks in the research and development of patented drugs that are more difficult than those of European and American pharmaceutical companies. This is also the key reason why I have increased research and development efforts in the generic drug business, which is less difficult to develop."
Xia Yu nodded slightly, agreeing with his approach.
In the future, generic drugs will occupy a larger and larger market share, while the proportion of patented drugs will be relatively small, and the situation of patented drugs will become worse and worse as time goes by.
In later generations, the market share of generic drugs in the United States was 50 to 60 percent, while in the mainland of later generations, the market share of generic drugs was as high as 80 to 90 percent, and the highest was as high as 95 percent!
The proportion of generic drugs in the island country of later generations also accounted for more than 80%!
Now in the first half of 1984, the generic drug revenue of Aomei Pharmaceutical Factory 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 Pharmaceuticals by Xia Yu, the operators were too gambling, and their scientific research motivation was stronger, and they always insisted on patented drugs.
However, it is precisely because of this reason that the profit before the acquisition of Aomei Pharmaceutical Factory is relatively low, which makes Xia Yu's acquisition cost lower, and has accumulated more pharmaceutical technology, so that he can have it so soon after taking over. output.
Otherwise, according to the research and development of a new drug, it generally takes about ten years, and it is only a few cases that it only takes a few years with luck.
"Generic drugs need to increase investment. Do you think there is any way to make Xiangjiang's generic drug industry more competitive, not just limited to our company?"
Xia Yu asked softly, he wanted to hear the opinions of professionals.
He already has an idea about the reform direction of the entire pharmaceutical industry in Xiangjiang, but the generic drugs need to be specially supplemented.
The more developed the generic drug industry is, the lower the cost of drugs will be, and the cheaper the drugs will be in the hands of patients. This is a matter for the benefit of mankind.
And considering the situation of future generations in the mainland, it does need a more developed generic drug industry to support.
Australia and the United States pharmaceutical companies start first, and in the future, the generic drug market of the mainland's hundreds of billions of dollars will be able to eat a larger piece of the cake.
Chen Zeyang talked eloquently: "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, until the US proposed the "Hatch-Waxman Act" in the first half of this year, which was also approved It's called the "Drug Price Competition and Patent Term Compensation Law," and it 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 writing the draft, he said: "The core of this bill has three points, one is to extend the patent period of patented drugs to 20 years, to protect the interests of the original research drug companies, and to stabilize the original research drug companies. Passion for conducting 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 to give the first company to launch a generic drug a 180-day market exclusivity period. Gain five to ten times the revenue during the period, allowing generic drug companies to recover their costs.”
"The third point is to simplify the pre-marketing process of the drug. It does not need to go through the approval process like the original drug, but only needs to provide FDA data to prove that the generic drug is equivalent to the reference drug, and provide data to prove that the generic drug is the same as the reference drug. Bioequivalence between drugs is enough.”
"This bill balances the balance between patented drugs and generic drug companies. It has an incentive for pharmaceutical companies in both fields, increasing market competitiveness, and at the same time balancing the interests of patients and pharmaceutical companies. In the long run, it can be Allow patients to 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 the results, and the United Kingdom is still indifferent for the time being."
"If Hong Kong can introduce a similar bill as soon as possible, then the environment of the pharmaceutical industry in Hong Kong will be greatly improved, which will be of great benefit to our company. It can extend the patent term of our company's patented drugs and save the time for generic drugs to go to market."
"Okay, I see."
"It doesn't matter whether the UK implements it or not, and Hong Kong also has independent legislative power."
Xia Yu said with a light smile.
Chen Zeyang understood Xia Yu's subtext, and he couldn't help but his eyes lit up, and anticipation rose in his heart.
"Okay, Zeyang, I'll give you an order now."
"From today until I order the suspension, the company only needs to maintain normal operations without losing money, and the company does not need excess profits. All this money is invested in R&D and mergers and acquisitions."
Xia Yu's light-hearted words put the profits of Aomei Pharmaceutical Factory of 176 million Hong Kong dollars in the first half of this year and almost the same profit in the second half of the year, adding up to more than 350 million Hong Kong dollars, all of which were invested in drug research and development and mergers and acquisitions.
Chen Zeyang was refreshed, his voice trembled, and he answered loudly, "Understood!"
Xia Yu also talked about some precautions:
"Also, there will be some changes in the Xiangjiang pharmaceutical industry next. You need to provide some assistance here, and someone will tell you the specific things."
"In the field of drug research and development, I will also give you a list at that time. The list will clearly write which drugs should not be involved in research and development. I have pharmaceutical companies in other places, so don't create unnecessary competition."
This refers to Genentech, Amgen, Abbott in the United States, and Geneva Biogen, which the Bright Fund invested in.
The global pharmaceutical market is so large and there are many giants. There is no need for internal friction. Instead, there must be a clear division of labor and unity to compete with other pharmaceutical companies.
"Chairman, I will listen to your arrangement!"
...
After leaving the Aomei Pharmaceutical Factory, Xia Yu was ready to start the Xiangjiang pharmaceutical industry and the big health industry.
The first is the internal adjustment.
His first move was a big one, that is, he planned to change the name of Jiuding Pharmaceutical Group to Jiuding Health Group, which was in line with Xiangjiang's development strategy.
It was followed by a big move to spin off Jiuding Fitness Company, one of the pillars of Jiuding Retail Group, and become a first-level subsidiary of Jiuding Health Group.
Jiuding Bodybuilding has two brands, Watsons and Mannings Pharmacy, ranking first and second in Hong Kong and Southeast Asia respectively, with a total of 525 and 481 stores respectively.
Jiuding Bodybuilding 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 Pharmaceutical are so high.
Now that Jiuding Bodybuilding Co., Ltd. is placed under the Jiuding Great Health Group, these companies will become brothers of the first milk compatriots, and the cooperative relationship will naturally be further deepened, which is beneficial to each company.
Then, Xia Yu ordered Jiuding Great Health Company to set up an excellent medical equipment company to manufacture medical equipment and medical care equipment.
Nanshan Health Technology Co., Ltd. was established to manufacture leisure fitness and other sports equipment, including sports bicycles, treadmills, etc.
A love health management consulting company was established to provide systematic and professional health management services and health consulting services as a third-party service agency and medical insurance agency or directly for individual needs.
Established a health care company, engaged in the production and operation of health care products and nutritional food.
Finally, a lover products company was established to produce and sell adult products.
After this set of actions, Jiuding Great Health Group will cover all subdivisions of the entire great health industry in an all-round way.
Next, Jiuding Health Group will become the leader and lead the vigorous development of Heungkong's health industry.
And in order to let Xiangjiang's big health industry have a good growth soil.
Xia Yu ordered Huo Jianning to ask the think tank to sort out a plan, which included two aspects.
One of them is the U.S. Drug Price Competition and Patent Term Compensation Act mentioned by Chen Zeyang, which makes the same or similar content of the bill.
On the other hand, it is not implemented by any country in the world at present, that is, the drug R&D tax deduction policy, the R&D investment cost of pharmaceutical companies can be deducted from the company's business tax, so as to stimulate the enthusiasm of pharmaceutical companies for R&D.
Hong Kong cannot be the same as India. India does not recognize the patent rights of medicines, so it does not matter if it is blocked by the WTO, and it does not plan to want the international market in the first place.
But if Hong Kong wants to become an international city, it must not do so.
And 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 the global industry competitiveness will be greatly enhanced.
This environment will also attract major pharmaceutical companies from around the world to invest and set up factories in Hong Kong, and even relocate their headquarters here.
For industry leaders who are just starting out and are preparing to set up pharmaceutical companies, Hong Kong will be their key consideration, which is very attractive to pharmaceutical talents.
But no matter what the future holds, at least the initial policy dividends, Xia Yu's Jiuding Great Health Group will enjoy the most.
As long as the bill is passed and implemented, the Heungkong health industry will surely enter the road to take off.
PS: Two chapters in one. To be honest, after seeing the manuscript fee list today, I was greatly shocked. I have been working hard to restore the update since last month. Unfortunately, a regulation on the website directly destroyed all my expectations. Even if I have more words, the support, subsidies and incentive policies are all I have nothing to do with me. I thought I could get a subsidy of one or two thousand last month, but I didn't have a dime, and it definitely won't be there in the future. I'm so disappointed. I can only eat subscriptions and rewards. Yes, hey
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(End of this chapter)