Chapter 364: 10 times the premium for medicines

In the global medical device market, there are exactly 10 companies with annual sales of more than 10 billion US dollars, the highest Johnson & Johnson medical device division completed sales of 28.5 billion US dollars in 2009, and Stryker Group, which ranked tenth, completed sales of 10.7 billion US dollars. Pen | fun | pavilion www. biquge。 info

It's one of the most competitive markets, and technological advancements seem to be never-ending, with new breakthroughs happening every year.

The United States dominates most of this area, thanks to the sheer size of its own healthcare market.

In other words, with the gradual expansion and growth of China's medical device market, the world's first medical device company must be a local Chinese enterprise, and the Huayin Consortium is convinced of this, not only investing heavily in scientific research, constantly expanding domestic marketing channels, but also constantly carrying out hidden overseas mergers and acquisitions.

Xu Teng's plan is to invest US$25 billion in scientific research, promotion and mergers and acquisitions in five years, and eventually recover US$13 billion in short-term returns in seven years through the stock market, ensuring the capital flow of the Huayin consortium, and then through about 15 years of steady operation, continue to withdraw the high investment in the first five years.

This is a supermarket with annual sales of more than 300 billion US dollars, with an annual growth rate of more than 7%, although it cannot be compared with oil and natural gas, but it is definitely worthy of a place for the Huayin consortium.

In the Chinese market, it is growing at an annual rate of more than 13%.

In contrast, the annual growth rate of China's CNC machine tools is 17%, and the annual growth rate of global CNC machine tools is 4.3%, basically, China occupies 70% of the global CNC machine tool growth space - market + government industrial policy, which determines that within five years, the international machine tool giants will take a back seat in the Chinese market, lose the position of the first camp, and eventually will slowly become a supporting enterprise for China's machine tool giants.

Xu Teng estimates that at least until 2020, the domestic medical device industry will replicate this process, so the Huayin consortium will give more priority to the machine tool industry in the allocation of capital flow in five years.

Business is like that, you have to think about the rational allocation of funds.

At the point where Xu Teng has arrived, it is difficult for him to spare his energy to manage which industry, which industrial group, and which subsidiary to operate, and he can only do some high-level work.

If the people below don't do a good job, fail to implement his decisions 100%, and fail to fulfill his requirements, he can only remove the person in charge and the senior management.

If he has missed the best opportunity and has no skills to return to the sky, he can only swing his knife from the palace, cut down the industry, try to stop the loss immediately, and ensure that there is no big loss at the entire consortium level.

Just as the prime minister of a country knows that there are economic problems in a certain province, it is impossible for him to personally go to the province to take charge and personally handle the administrative affairs of the province, and sometimes he can only wait for various problems to erupt and then rightfully replace the provincial leaders and start anew.

Xu Teng is the same, there are some things, you don't know that there is a problem, you know that this person can't do it, there must be a way to solve it.

In recent years, the domestic economic environment is good, and the 17 first-level industrial groups under the Huayin consortium have developed very smoothly.

Xu Teng's psychological preparation for this aspect is very sufficient, even the Huayin Consortium cannot be successful in every field, and there are always mistakes.

What he can do is to tell the people in charge at all levels below as frankly as possible - don't force me, I want to be ruthless, even I am afraid.

Returning to China in September, after the National Day, a few days ago he was in a very happy mood to receive Ivica, the beautiful president, these two days, he cut a few fingers, the auto parts industry in the four subsidiaries of the head of the company as a whole chopped off - anyway, they are all executives who came over during the restructuring of state-owned enterprises, and they are not distressed when they cut it, and they endured it for a few years, and finally have a reason to cut it clean, and they don't have to give face to the leaders of those provinces.

The Huayin consortium is so large, with 7 financial companies, 17 first-level industrial group head offices, and as many as 400 second-level subsidiaries.

How can Xu Teng have the energy to supervise and teach one by one, if he can't do it well, he can only chop it off.

As soon as Xu Teng returned to China, he chopped off the four senior partners of Sino Soar Group, from Anchai Company to Jinma Electronics, to Sinovel Automobile Decoration Company, and the poor performance was cut, and those that did not meet the requirements of the consortium were also cut.

How should Li Dakai, a co-partner of Huayin Consortium and chairman of Sino Soar Group, choose, and does Xu Teng say it again?

Li Dakai has made a very significant contribution to the development of China's transmission and automobile transmission system, and is definitely one of the three giants of China's auto parts industry, but in these years, Xu Teng has been entrusted with important tasks and given 100% trust.

The result?

It's really not good!

You can't rely on overseas mergers and acquisitions to solve the problem of technology and market share, right?

Of course, Xu Teng will not deny that if he gives Sino Soar another 5 years, the situation will be better, after all, technological progress and market development take time.

This time, he killed the chicken to show the monkey, killed the Huateng Automobile, killed the Huateng Hi-Tech, and killed the senior management of all other first-level industrial groups, don't think that if he makes money, he will not lower his requirements.

Because there are a large number of related party transactions within the consortium, it is basically not too difficult for the first-level industrial groups of the Huayin Consortium to achieve profitability and come up with a beautiful listing financial report.

Profit.

This is just the minimum standard for all associate partners and senior partners.

Xu Teng's requirements for 17 industrial groups are by no means as simple as profitability and beautiful listing financial reports, his requirements are to create 17 of the world's best quality multinational groups and 17 of the world's top 500 industrial groups.

He endured it for 4 years, and finally couldn't bear it anymore and spent 2 hours firing 4 chairmen and 13 executives.

The next step is to remove a co-partner, who is finally going to be fired in his third year as chairman of the consortium.

Within the consortium, everyone is related to each other, and they don't dare to come over to persuade them.

Li Daxiao would not ask about these things.

After a few days of hard work, we finally persuaded Wang Tong to come forward, persuade Xu Teng, and emphasize that the hardships of the domestic manufacturing industry are not easy, Li Dakai is a giant in China's auto parts industry after all, with prestige and qualifications, and I am afraid that another person may not be able to control the behemoth of Sino Soar Group.

Wang Yan was very embarrassed, it happened that he had arranged a meeting in the past few days and wanted to talk to Xu Teng about a big matter, but he was assigned this task by other joint partners, and asked him to persuade Xu Teng to keep people under the knife and give Chairman Li a few more years.

When Wang Yan's Boan Group, headquartered in Guangdong Province, arrived in Jiangzhou by special plane, Xu Teng was in the chairman's office on the 48th floor of the Huateng Science and Technology Building, chatting with Miss Ivica about the prospects of China's economy.

This chairman's office, not so much an office, is more of a chairman's official hall, and the decoration style has changed from the idyllic bamboo style that Xu Teng loved in the past, and has changed it to a Greek and Mediterranean style that he and Xia Li both like.

Compared to the home, the décor here is more modern, more technological, and more trendy, after all, it is the office of a global technology industry leader, and it always needs to be a bit of a technology leader.

Xu Teng's time is also very free, not to mention that Ivica and Elizabeth Holmes will take a flight to Shanghai tomorrow, he deliberately emptied a lot of his itinerary in the afternoon, and chatted with the two beauties alone, from China's economy to the global economy, to the situation of the medical device industry and the network technology industry, almost everything.

Wang Yan has a very important matter, he must have an interview with Xu Teng.

This thing is special and important.

Xu Teng finally retained this itinerary, just to introduce Wang Tong and Ivica to know, Wang Yan is now responsible for the medical industry Boan Group, which has the third largest chain hospital group in the United States in the United States, and Ivica is the "agent" of the American medical device industry selected by Xu Teng, and it must be known as soon as possible, which is conducive to many internal operations.

When Wang Yan arrived at the office, Xu Teng didn't get up, waved his hand to say hello, and introduced Wang Yan and Ivica to each other, as for Miss Holmes, she and Wang Yan had already known each other, so there was no need for Xu Teng to introduce her.

"If you want to talk about Sino Soar Group, then don't talk about it, I have been thinking about this for a long time, and I have to do it. As soon as Xu Teng opened his mouth, he cut off the possibility of Wang Yan lobbying for others, beckoned the waitress to come over, and gave him and Chen Jian, as well as the two beauties, a few glasses of cognac with ice.

"Okay, I won't talk about that. Wang Yan smiled bitterly, to be honest, even he was very scared, because Li Dakai is not only a giant in China's auto parts industry, but also has made a lot of achievements in the past four years, at least he has worked hard and has been very hard.

It's going to click.

Hey, everyone is really scared by Xu Teng, the real life and death are taken.

Wang Tong is one of the few co-partners who can really understand Xu Teng, he knows that Xu Teng's requirements for the entire automobile industry of Huayin Consortium are very high, not only requiring the vehicle industry to be among the top five seats in the global automotive industry, but also the auto parts industry to be among the top three, to be the world's best quality auto parts group.

Li Dakai is doing okay, but there is a long way to go from Xu Teng's request, and there is a tendency to get farther and farther away.

The situation of Fortune Automobile Group is not good.

Xu Teng must now be ruthless next time, so that the senior management of Huateng Automobile and Sino Soar Group should be sober, have a stronger sense of crisis, and make it clear that his requirements for the automobile industry of Huayin Consortium are not for fun, not to deceive customers, not to engage in publicity and promotion, but real ambition and strategy.

Similarly, the goals he proposed to other industrial groups are not just propaganda slogans, and if they can't be achieved, they will be rolled out immediately.

"You're not talking about the Sino Soar Group, you're talking about the price adjustment of drugs, right?" Xu Teng thought for a while, took out two simultaneous translation headphones from the drawer, and asked the waitress next to him to give them to Ivica and Elizabeth Holmes.

Wang Yan's English level is still very scummy, although there are two foreign girl agents here to participate in the discussion, he can't use English to discuss the affairs of the consortium.

"yes, this has to be a final decision. Wang Yan took out his tablet from his briefcase and passed the information to Xu Teng, "This is the latest statistics of Boan Group, and the situation is still very serious." ”

"Hmm!" Xu Teng glanced at it and didn't deny it.

In terms of injectable drugs, the cost of a single box of 1.0g aztreonam of Boan Group's pharmaceutical factory is 1.7 yuan, the ex-factory price is 4.2 yuan, and the average bid price of hospitals in first-tier cities across the country is 45 yuan.

Injection broad-spectrum antibiotics, taking cefixime 1.0g injection as an example, the ex-factory price is 3.5 yuan, and the average winning bid price of hospitals in first-tier cities across the country is 27 yuan.

From 2007 to 2010, under the leadership of Wang Yan, Boan Group has fulfilled Xu Teng's original commitment and established Bo'an Community Hospitals in 660 cities and 1,600 counties across the country, from Mohe in the north to Kashgar in the west and Xisha in the south, with a total scale of 27,000 and an average of 14.5 in each county, realizing complete coverage from provinces and cities to townships.

Is it a loss or not?

No loss.

This point even exceeded Wang Yan's expectations, he initially thought that the first five years before the brand was fully established, it must be a loss, but he didn't expect to make such a profit.

The scale of Huayin Consortium's property in the country is very large, and 13,000 of the 27,000 community hospitals are self-operated property facades, with huge one-time expenditures and long-term repayment of property acquisition loans.

After the end of the repayment period of the commercial loans of these façade houses, the net assets of the property of the community hospital alone can reach 12 billion.

Of the 27,000 community hospitals, 95 percent are profitable, and net profit after deducting various commercial loans and taxes.

It turned out to be very simple, and the profits of Boan Group's drugs were amazing.

In order to compete with large hospitals, the price of injectable drugs in community hospitals in Bo'an is generally 15% lower than that of large hospitals.

If it is in a community hospital in the Bo'an department, hang up water once, antibiotics plus cold spirit, or virus clearing, about 70 yuan, and the township is a little lower, because the township hospital is also relatively cheap, basically around 50.

Bo'an has clear statistics in the country, and the prices of medical services of all competitors are basically recorded, which is big data, and with these detailed data, it is very simple for Wang Yi to make decisions.

In the past, the Bo'an department promoted a cefixime injection to the hospital, if it was sold through the provincial medical group, it could only get 4.2 yuan, and this huge profit in the middle was taken away by the provincial medical group that monopolized the bidding of various provinces.

If it is sold directly to the hospital, the nominal price is 27 yuan, but half of the cost has to be handed over to the hospital, each department of the hospital has an income-generating index, the price of 27 yuan, 13 yuan to each department, each department and the hospital is half to half to take the money, the department takes 6.5 yuan, the hospital takes 6.5 yuan, and the sales representative and the middleman take another 3 yuan incentive.

For pharmaceutical companies, it is indeed necessary to make more money by calculating the value-added tax and selling it to hospitals, but it is not much.

In addition, hospitals generally do not use drugs from pharmacies.

To put it simply, if the drugs of the Bo'an department want to enter the hospital, they generally have to be registered separately, one product and two brands, otherwise don't want to enter the hospital system, they will be hacked to death directly from the provincial pharmaceutical bidding companies, and it is impossible to give you the opportunity to be shortlisted.

The reason is very simple, you can buy the drugs prescribed by the hospital, and what other drugs does the hospital sell?

Boan Group has now developed to this scale, and Wang Yan wants to play a big move, comprehensively reduce drug prices, absorb medical customer resources from the state-owned medical system, and directly start a war with drug prices.

Because the output of drugs in Bo'an is limited, the national Bo'ai Hospital, Bo'an Community Hospital, and Bo'an Pharmacy Alliance almost happen to produce and sell themselves.

Wang Yan has decided to give up selling drugs to the state-owned medical system, to fight a nationwide public opinion war, and to lay a word-of-mouth battle for the conscience of the Bo'an system = the medical industry in one fell swoop.

He can fight this battle, but there is a lot of controversy within the Huayin Consortium, because the Huayin Consortium also has a medical device industry, and the price of an MPI and a CT is not something that can be earned back by selling drugs.

Li Dongsheng is currently leading the transformation of Shenzhou Electric Group, one of the key points is to break through the medical device industry, and has high hopes for its TCL medical business.

Wang Yan wants to lead Boan Group and the national state-owned medical system to fight a word-of-mouth war, which is simply Li Dongsheng's old life, not to mention Huabo Medical Technology Company, a subsidiary of Huateng Hi-Tech Group, will definitely be implicated.

Everyone has their own ideas, each has their own interests, and they are arguing back and forth, and now they can only let Xu Teng make a final choice.

Xu Teng is actually not easy to choose.

If Wang Yan only lowers the price within the Boan department, it will not achieve the effect of public opinion promotion, but it will not be able to pass with the money, reduce the price, make small profits and quick turnover, and will not have a big impact on the profitability of Boan Group.

Wang Yan's plan is to concentrate customer resources in Bo'an Community Hospital through small benefits and image wars, word-of-mouth wars, public opinion wars, and conscience wars, and then export disease sources to 70 tertiary first-class fraternity hospitals across the country, so as to improve comprehensive profitability and maintain long-term reputation and profits.

He invested so much money and reached this scale, so he needed such a big battle to establish the position of Bo'an in China's medical service industry in one fell swoop.

The idea is very good, but Xu Teng does not dare to make decisions easily.

Xu Teng and Wang Yan talked for half an hour, analyzing the pros and cons, but in the end they couldn't make a choice.

"To put it mildly, the root cause of this phenomenon is the overall failure of China's health care reform, and the national and provincial and municipal governments at all levels have too little financial allocation to the public health care system. Therefore, the government is not wrong to not consider universal employment and only talk about social welfare guarantees, which is also a hooligan. Xu Teng decided to analyze the problem from a higher perspective.

"It makes sense to say this, but, in business, we need to seize this loophole and establish a brand, because our system construction is in place, however, our customer utilization rate is not high. We have 27,000 community hospitals across the country, and on average, each community hospital can only provide 55 medical services per day, which is far from enough, and there is no problem with a three-fold increase in this number. ”

"If we cut the price by 30% and double the number of medical services, the total profit will increase by 1.5 times. "Wang Yan is unwilling to give up this opportunity, he has invested so much, recruited such people, spent several years constantly training new nurses, everything is ready," the focus is on word of mouth, not only the reputation of our Boan Group, but also the reputation of the entire Huayin Consortium and the reputation of the chairman. ”

Oops.

Wang Tong decided to consider the problem from Xu Teng's point of view and lobbied Xu Teng in a different way, if this matter was successful, Xu Teng's prestige in China would be unmatched, and of course, he Wang Tong would also become a moral model in the Chinese business community.

"Yes, let's invest so much, if we don't make a big formation, we can't say it. Xu Teng was convinced, but he still had to take into account the sales of the medical device industry, and if this thing was done well, it would be a big killer for the American medical device industry.

Xu Teng's strategy is absolutely ingenious.

He wants to control the largest medical device group in the United States through mergers and acquisitions, concentrate on investment in Costa Rica and Central America, transfer high-end production capacity to China, transfer low-end production capacity to Central America, and completely hollow out the medical device manufacturing industry in the United States, and Central America is a free trade zone that the United States will never dare to cut, which is the backyard of the United States.

He has calculated through the national policy of the United States, the United States can vent its dissatisfaction with Mexico's hollowed-out manufacturing industry, but it will definitely not vent its dissatisfaction with Costa Rica and Honduras, and can only knock out teeth and swallow blood, unless the United States is willing to give up its back garden to China to control, it is better to kill the United States.

As soon as this public opinion war is fought, TCL Medical and Huateng Hi-Tech Group will definitely be implicated, but ...... Boan Medical fully adopts TCL medical equipment, and Huabo Medical Device Company, a subsidiary of Huateng Hi-Tech, is directly incorporated into "foreign capital" and becomes a U.S.-controlled enterprise, which will probably not be a big problem.

What remains is the question of the scale of the public opinion war, whether it is aimed at hospitals or the failure of the entire medical reform? Is it aimed at the conscience of the entire Chinese medical system, or is it a question of the policy level and the system?

"You find a few of the best PR agencies, formulate different plans and submit them to me!" Xu Teng didn't have time to carefully analyze the pros and cons, he decided to use money to solve the problem, directly purchase the wisdom of others, and he could choose the best plan among them.

"Okay, Lao Li's side...... "Wang Yan and Li Dongsheng have always been very good friends, if he wants to do this, Li Dongsheng will definitely go crazy, in the first half of the year, Shenzhou Electric Group just played TCL medical advertising on CCTV for half a year, spent hundreds of millions of dollars on promotion, and now it is going to be smashed.

"Let me talk to him, anyway, we still have to try to control the scale, not to patronize and attack the public medical system, to maximize the benefits, not only to ensure that we get word of mouth, but also not to tear apart too deep social contradictions, let alone completely offend the country's public medical system, after all, the power of Boan Group is still very weak. Xu Teng still has deep scruples, because once this matter comes out, the impact will be very far-reaching.

Although the people of the whole country basically know these things, it is still very scary to really make it clear how much of the difference in profit is.

Now, China's medical industry is developing rapidly, more and more hospitals are upgraded to the third grade, medical equipment and conditions are getting better and better, and there are more and more doctors.

Bo'an is not demanding, through early exposure, early price reduction, from 7 times the premium to 4 times the premium, from the national public medical system to snatch a part of the high growth space, snatch away a part of the customer.

At present, there are 70 tertiary hospitals in the Bo'an department, all over the provinces, and the second-class A covers 1/2 of China's counties.

Therefore, Xu Teng and Wang Yan are not saints, they must operate on the domestic public medical system in business, and use this incident to make a big advertisement that shakes the whole country.

In fact, some things are beyond many expectations, because no one has done these things in the past, and Xu Teng doesn't know about them.

Take, for example, the Boan Community Hospital System.

There are still some community hospitals in China, especially in some megacities, where local governments have strong financial capacity and still pay great attention to people's livelihood issues in this area, but the results are not very good.

After the emergence of Bo'an Community Hospital, the effect is not bad, the resident treatment rate in the surrounding area is very good, a big factor in this is the problem of trust, although you are a community hospital, but after all, it is a big company and a big hospital, on the one hand, I believe in your medical level, on the other hand, in case something happens, I can find you, you can't run.

Finally, as the senior management leader of the entire Boan Group, Wang Yan does have a level and perseverance that ordinary people cannot reach for the team building, system construction, reputation and brand building of Boan Group, and he has high requirements.

With the superposition of various factors, the profitability of Boan Group in the medical service business is already very strong, and it has surpassed the traditional drug and pharmacy chain business.

Wang Yan's advantage is here, he is not satisfied, he will not be like Li Dakai and those people, satisfied with the status quo, he wants to sacrifice a big move with a profit of no more than 20%, and push the team spirit and corporate image of Boan Group to a higher stage and push it to a moral benchmark.

Whether it is team spirit, business literacy, professional ethics, and performance level, he wants to make Boan Group the banner of this industry.

This is the co-partner Xu Teng wants, this is the chairman of the first-class industrial group that Xu Teng wants, and the co-partner who wants to rely on the big tree of the Huayin Consortium and wants to lie on the ground to make money, he will be kicked out.

Xu Teng's requirements are very clear, everyone must demand themselves with the highest standards, and everyone must be a high-level person in spirit, temperament, and connotation, otherwise, get out!

To put it more directly, Mr. Xu is a person who is deeply influenced by Amway's culture, and this influence has penetrated into the entire consortium in the process of Mr. Xu's establishment of the Huayin Consortium, and with the expansion of the Huayin Consortium, the continuous merger of state-owned enterprises and foreign enterprises, this temperament is slowly weakening.

Xu Teng is now going to re-elevate this culture, elevate this spirit, and penetrate into the hearts of all employees of the entire consortium, which is brainwashing, so that every employee will get a sense of spiritual nobility and a strong motivation for self-improvement after entering the various enterprises of the Huayin Consortium, and have confidence in the enterprise, in life, and in themselves.

Xu Teng wants to open a knife on the senior management of Sino Soar Group, because it has been 7 years since the establishment of Sino Soar Group, many employees of subordinate enterprises still lack this confidence, have no confidence in the enterprise, or are similar to the previous days in the era of state-owned enterprises.

The Huayin Consortium wants to be the best quality consortium and the best enterprise alliance in China, and this situation is certainly intolerable.

Important words, Xu Teng has said it three times, the senior management is still not conscious, there is no improvement, and they have not been brainwashed, then get out, what the Huayin Consortium wants is those talents who are easy to be brainwashed, and what they want is talents who can dedicate their lives to the consortium.

Of course, Xu Teng also admitted that these people from state-owned enterprises are indeed not easy to accept the brainwashing of Huateng's spirit, and they have a natural immunity. (To be continued.) )