Chapter 114: Trouble with the Giants
With the advent of new ED drugs, Eli Lilly is not the only pharmaceutical giant that is tempting. The giants have their own flexible news channels, including the big Pfizer - coincidentally, Pfizer and Eli Lilly happen to be sworn enemies on ED drugs, fighting every year!
Pfizer's Viagra patent expires this year, and there will be countless generic drug companies to grab their interests. There is also Eli Lilly as a fierce rival on the front! Their competitor, Cialis Colis, managed to beat Viagra in sales last year (2013).
Viagra, which is on the decline, is already difficult to parry opponents, Cialis is better than Viagra in terms of duration and side effects, and if they are allowed to grab this new technology, Pfizer, a drug that can bring a lot of revenue to the company every year, can be delisted.
That's why Pfizer CEO Ian Reid frowned today.
On his desk was a newly obtained investigative report stating that the code-named ED drug had a longer, more effective effect and few side effects. Moreover, it can also give people the effect of prolonging the time of committing crimes!
These two effects add up to an "upgraded version", they should be the next generation of biotechnology, but they have been developed by Chinese pharmaceutical companies that have always been able to engage in generic drugs and play copycats? And the time is still so short, and two phases of clinical trials have been carried out quickly?
"That's how efficient we are?" Reed lashed at his men.
The faces of the R&D department and other high-level executives are not very good-looking, but no one dares to defend when the boss is angry, after all, in the past two years, Pfizer's results are indeed average, first the first throne was snatched away by Johnson & Johnson and Novartis, and now it is halfway to the gold!
The main pressure still comes from the board of directors, those people only look at profits, and everything is bullshit if they don't make a profit! Pfizer is currently facing the trouble of "fleeing the United States", which also needs capital and a soaring stock market to achieve a large M&A. Act, transfer overseas.
Reed understands that the company urgently needs good results - and good new drugs for good results. This new drug is currently in the hands of companies that do not know the roots, and there is no need to think about it, other opponents will definitely try their best to contact and snatch the fruit.
"What do you have now?" Reed finally realizes that anger on his men won't solve the problem.
The subordinates breathed a sigh of relief, and someone shouted: "At present, our focus is to get this new drug, and we can't be preempted by Eli Lilly or other opponents." β
"Go on." Reid said.
"Our company in China got the news that the investor of that pharmaceutical company is currently in the United States, a high-tech battery business, and he also has investments in pharmaceutical companies in California, and we can send someone to California to contact him."
"For more detailed information about him and the new drug, the efficacy and other information, just get it to me." Reed said, thinking of its amazing effect, adds: "No matter the cost!" β
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Eli Lilly, on the other hand, is equally concerned.
While they are not as big as Pfizer, their ambitions are not small. In the past few years, they have just tasted the sweetness of "Cialis", and they are trampling their opponents under their feet, how can they want to see the rise of another new drug? Doesn't this mean that their years of R&D and funding have been wasted?
They had access to and information about Wells Fargo earlier than Pfizer, and learned that this was a company with financial strength...... Weak poor pharmaceutical companies. I don't know how to withstand the consumption of new drug research and development? Unless it's a genius. But no matter what, the new drug is strong and unchanged.
Mastering this new drug not only means that Pfizer, an opponent, can be KO, but also sweeps the market of ED patented drugs, becomes the hegemon, and more than doubles its sales, what kind of achievement is this?
If they miss it, not only will they not be able to eat this piece of the market, but they may also throw away all of what they have mastered and feed the cake to their opponents!
So the company's boss also gave an order: "Go all out to get this new drug!" β
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The disruption of new drugs has brought trouble and opportunities to the giants.
Meng Qian soon received a reply from Eli Lilly and Company, and they were willing to meet in person, which was very sincereβand it also proved that his offer was not too difficult?
Following Eli Lilly, Pfizer also took the initiative to contact his assistant, saying that he was very interested in the new drug and was also willing to send someone to meet in person.
Meng Qian is not stupid, after seeing that there are two giants interested, he understands that there is room for operation.
It also indirectly proves that the $5 billion he casually shouted earlier may not be too high...... He took the time to talk to his assistant and analyze the market in this area.
Ralph dutifully went to investigate and get information, and then contacted Onix Pharmaceuticals - the advantage of being a shareholder, someone on the board of directors represented him.
Then Meng Qian got the result: "My offer is low? β
Ralph said: "If it is really according to the determination of the gentleman to launch the new drug, this price point may be slightly lower." β
"However, pharmaceutical companies that buy technology also have to bear the price of failure in the third phase and application failure. The evaluation of the selling price is mainly based on the level of the core technology. β
"That's low." Meng Qian is confident in his plug-in.
After thinking about it, he also felt that this was the reason, he spent three billion dollars (in a dream) to develop it, and obtained a new drug that could steal the market of hundreds of billions in 20 years, and only sold it for 5 billion dollars?
It's a loss, it's a real loss! Meng Qian is very thick-skinned in business, although five billion yuan is shouted out, and if he changes his words, he is suspected of slapping himself in the face, but it does not mean that there are no conditions attached.
So in the meeting with Eli Lilly and Company, he offered: "Five billion dollars, plus a 5% share of drug sales in 20 years." β
The other party's expression changed, obviously scaring the additional in the back.
Don't underestimate the 5% share of sales, it's not sure that it has the same effect as the 50% share of the joint venture!
For example, if the drug sales are 10 billion, the 5% share is 500 million; And holding 50% of the shares, assuming a net profit margin of 10%, the dividend is also 500 million!
It's a lion's mouth!
"We can still discuss." The other party is almost dissatisfied with the words on his face, although he knows that they can still earn, but who wants to earn less?
"You guys keep in touch with my assistant." Meng Qian smiled and said that he was a little busy right now and didn't have time to bargain - he needed a professional negotiation team.
Similarly, in a brief contact with Pfizer the next day, Meng Qian also offered similar conditions, the other party was interested in a one-time buyout, but the latter sales share was not good.
"The conditions are beyond our capacity, and your company has not yet put the new drug into large-scale clinical trials, so we are taking a lot of risks......"
"I see." Meng Qian nodded, "You need the data of the third issue, and then I'll open a price that is more in line with reality, right?" β
The other party affirmed: "Considering the actual situation of your company, we are willing to take this part of the risk, but we just hope that the overall price is more in line with reality." β
In the absence of more clinical results, Meng Qian's asking price is exaggerated.
5 billion will inevitably fall again, down to 2 billion, and there can be no sales share -- this is what the giants think.
But for Meng Qian, this result is better than not selling, surviving this difficult period of capital development, and after the drug is launched in the future, it will be able to bring him at least more than 20 billion profits within 20 years.
So his interest shifted for the time being, leaving these professional negotiations to the masters.
If the price is right, he will sell it, and if it is not suitable, he will keep it.
This kind of major business negotiation takes a long time just to rip the strings, and Meng Qian, as the CEO of many companies, does not have the effort to grind his tongue.