Chapter 208 Penicillin's Profiteering and Plummeting

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[208] Penicillin's windfall profits and plummets

Huo Yingdong's recent penicillin smuggling business is very hot, and the popularity is simply a mess, and it is indescribable. Penicillin, which bears the trademark of Bayer of Germany, has not only been sold all over Hong Kong, but is also being exported through various channels. Pangu Foreign Bank, which originally represented Pfizer in the United States to monopolize the penicillin business in Hong Kong, is now completely unable to ship.

His subordinates told Fok Yingdong that Sir Humphrey of Pangu & Co. was now mad, and he had dumped his inventory at factory prices in Vietnam, Thailand, the Philippines and other Southeast Asian regions, and stopped purchasing from pharmaceutical factories, and Pangu & Co. currently only acts as an agent of Pfizer drugs except for penicillin.

His subordinates even told Fok Ying-tung that Humphrey even threatened to give "Hong Kong gang leader Fok Ying-tung" a little color.

When Fok Yingdong heard Humphrey's threat, he scoffed at it.

"Look at your mother's color! There's no mistake! Your Pangu's Pfizer is expensive, and the doctors are not stupid! If you don't make money, you have to hold your stinky feet! I'm giving you face now, you ghost don't give you face! ”

After Huo Yingdong expressed his pride to his assistant in the office, he thought about it seriously, and felt that it was not good to offend Humphrey too much at present, after all, he was British, and he also hung a knighthood, and it would be a trouble to make trouble.

Huo Yingdong said to his subordinates and assistants: "You go outside and talk to the people of Pangu, just say what I said, everyone makes money, we are willing to supply Pangu at a low price, and let them underwrite the British market." ”

The assistant had nothing to object, but several senior managers were anxious when they heard it, and hurriedly said: "Boss Huo, the British market is so big, are you really willing to give it to Pangu?" ”

Huo Yingdong hesitated for a moment, but finally made up his mind and said: "Everyone earns money, and leave a foot of leeway in doing things." The supply is in my hands, and I am not afraid of him playing tricks. Besides, the UK is very mixed in the water, Pangu acts as an agent for Pfizer in the United States, and there are many channel distributors in the UK. For now, it's better for us to do it ourselves, so it's better to ask them to do it for us. ”

Humphrey, who got the message from Fok Yingdong, was a little hesitant at this time, and he didn't toss a lot during this time, first brought a few senior classes in the foreign bank to find the Governor of Hong Kong, Grantham to put pressure. However, Grantham had an ambiguous attitude, or rat or rat trap, and looked completely hesitant.

In Grantham's view, if the smuggling is completely cleared, Hong Kong will have to turn the world upside down. If the coal supply is cut off, will Hong Kong have to buy high-priced coal from the French in Vietnam, where the civil war is now raging?

Besides, the trade unions in Hong Kong are also fierce at present, and strikes due to labor disputes often occur, and Grantham understands that there are promoters from the north behind this. If it weren't for the fact that the north raised its noble hand several times after the Grantham people passed the word, and Hong Kong dared to strike even the street sweepers at this moment, then Hong Kong could really change its name and become a stinky port.

But the most important thing is the problem of your own wallet.

Mrs. Grantham has just partnered with the Huo family's Starlight Company to establish a joint venture Starlight Pharmaceutical Company. It is a company that sells so-called Bayer pharmaceutical products in East Germany and exports to the whole of Southeast Asia, Central and South America and the Caribbean.

Lao Ge asked and found that his wife Ge Mulian was penniless in this matter, she didn't do anything, and she got a lot of dry shares!

Grantham inquired again and found that the company was selling the low-priced penicillin, which Humphrey "strongly protested". The profits are still very large, almost like selling opium. This made Grantham make up his mind that as long as Huo Yingdong did not smuggle arms, the others could turn a blind eye.

When Huo Yingdong said that he was willing to give Pangu Foreign Company the agency in the British market, Lao Ge felt that Huo Yingdong had done a good job, and he might not be so generous in exchange for himself.

Sure enough, after the Pangu Foreign Bank negotiated with Huo Yingdong, it didn't make a fuss, for Grantham, who was the governor, this result was the best, everyone traveled thousands of miles just to seek wealth, since it could be resolved through negotiation, it was the best. So he didn't care about drug smuggling even more.

After World War II, the British economy was severely traumatized, and at the same time, the state-owned enterprises established in the country during World War II began to be constantly divided up by the capitalists and became private enterprises, and the oil and water of government officials became smaller and smaller.

As the Governor of Hong Kong, Grantham found that living here could not only rely on his salary to eat, but would have to starve to death. You must know that although Hong Kong is a small place, but the people who come and go are rich businessmen and gentry, if the Governor is poor and can't even support the faΓ§ade, he will have no face.

In the Governor's Palace on this day, Grantham saw his wife Mullian's face full of joy at the family dinner, so he asked:

"Honey, you always seem so happy lately, can you share it with me?"

Ge Mulian raised her eyebrows and said, "I just got the March sales record of Starlight Pharmaceutical Company today, and the situation is quite good. ”

Grantham quipped, "Oh, then ask our amazing female senior class to tell me about it." ”

Ge Mulian pretended to be mysterious: "Do you know how much Starlight Walk shipped in Central and South America and the Caribbean in March?" ”

Grantham thought for a moment and said, "Five thousand pounds? ”

Mrs. Ge smiled and leaned back, almost squirting the lamb chops in her mouth's face, she shook her head in ecstasy, wiped her mouth with a napkin, and continued to look at her husband, who had a bachelor of arts degree, with a scratchy expression.

Grantham was a wise man, and knew that he must have made an order of magnitude mistake, and he was astonished: "Is it fifty thousand pounds!" ”

Ge Mulian looked at her husband, who was full of political prospects, with some grievances, restrained her excitement, and said in a calm tone: "Four hundred thousand pounds." With that, she picked up a piece of raw celery as a side dish, and took a bite of it.

Lao Ge's brain was a little dizzy at this time, and he subconsciously reacted: "Incredible, this is simply a crazy business, 400,000 pounds!" That's $1.2 million. ”

Grantham finally reacted from his surprise and immediately asked, "What is Fok Yingdong's profit margin?" ”

Ge Mulian was very satisfied with her husband's surprise, and she said proudly: "25% of the profits, a full 100,000 pounds, my 10% dry shares can get 10,000 pounds." ”

Grantham was dumbfounded, and even a little jealous in his heart, and said, "In this case, your annual income will be 120,000 pounds, which is more than the income of a duke's domain, and all the salary subsidies I have worked for a year as governor are only 20,000 pounds." ”

Ge Mulian smiled and put her hand on the back of her husband's hand, and said affectionately: "This is our common income, dear, I know, if it weren't for your face, Huo Yingdong would never give me a dry share." ”

Grantham suddenly felt that his waist stiffened, and he happily converted in his heart: "120,000 pounds a year, this is more than 460,000 US dollars, which is nearly half a million!" Oh my God, as long as this drug business lasts for two years, I'm going to be a millionaire. ”

The honesty of the British in the face of money is always eye-popping, and Grantham swallowed the lamb chops in his mouth in thought, and said crisply:

"My dear, you tell Huo that if you need help, let him just speak, I have a few Cambridge classmates in Brazil and Argentina, and they still have some influence on the local government."

Grantham paused, tried to think about it with the mind of a businessman, and then said, "He doesn't export to the United States?" I have more classmates in the United States. ”

"Huo said that the current supply is only enough to sell in these regions, and the market will be expanded to North America and Europe in the future. ”

Grantham nodded and said, "I hope this is not a short-term quick money, I estimate that as soon as the pharmaceutical companies in the UK and the United States start to cut prices, your profits will start to drop significantly." I didn't pay much attention to drugs before, and I really didn't expect the cost of these pharmaceutical factories to be so low. ”

Grantham's prediction was right, the United States Pfizer and the British Glaxo Wellcome pharmaceutical company have discovered low-cost penicillin on the market, and the price war has begun.

Pfizer in the United States and Glaxo Wellcome in the United Kingdom made a fortune in the production of penicillin in World War II, even though the price of military procurement is very low, but under a large number of orders, the profits are also very considerable, according to the contract signed with the government, as long as the pharmaceutical factory guarantees the supply of the military at a low price, the government will give it tax exemption and will not interfere with its price monopoly in the market. Therefore, although World War II is over, the price of penicillin has fallen very slowly, and the reason of the pharmaceutical company is that the war is over, but the tax exemption treatment has also been abolished.

Recently, the situation in the British domestic market has changed abruptly, and a large number of German Bayer penicillin has appeared on the market out of nowhere, and the price has fallen again and again. Bayer's penicillin was initially sold for $20 per box at 100,000 units per bottle at a 20% import tax rate. However, after Pfizer and Glaxo Wellcome came up with 100,000 units of new goods and a price of $19, Bayer Pharmaceutical's penicillin plummeted all the way to $14 a box.

Because of the drop in prices, Sir Humphrey of Pangu found Fok Yingdong as soon as possible.

"Huo, the $14 price you offered me for a box is too expensive, and Pfizer is now willing to give me a supply price of $10 a box."

Huo Yingdong said without thinking: "From now on, I will give you a supply price of $5 per box." The UK itself is the nest of Glaxo Wellcome, so they are more ruthless. Don't hesitate, we will start this price war. ”

Fok Ying-tung is now proud, and after learning that the price war has begun, the mainland side has continued to adjust prices, and has now lowered the price of each box to $2, and Fok Ying-tung's smuggling volume has risen sharply, and several large ships travel back and forth between Shenzhen and Hong Kong every day to transport penicillin.

The mainland assured Fok Ying-tung that no matter what price the British offered, he, Fok Ying-tung, would immediately follow suit, at least by 70 percent of the British's price.

The domestic penicillin is currently hoarded very much, and after discovering this nugget channel, Xiaoqiang has to bring several tons of 40KG iron drums filled with penicillin raw powder every time he comes back. Beidu, Puhai, Guangzhou, and Chengdu are also stepping up the establishment of penicillin sub-packaging plants. The state-run glass factories are also doing thriving, and the government is full of orders, and they are desperately producing penicillin dispensing bottles. The only regret is that the aluminum foil and rubber stoppers on the bottle have not yet been domestically produced, and Xiaoqiang needs to be shipped back wholesale from 2011.

It can be said that in addition to glass bottles and packaging, China's penicillin exported to Hong Kong has no cost at all, and it is okay to tease Glaxo Wellcome in the United Kingdom and Pfizer in the United States.

Pangu was originally an agent for Pfizer's products and competed overseas with Glaxo Wellcome's British goods, but now Pangu took the East German goods that were rumored to be smuggled from Hong Kong and returned to the UK, seriously threatening the market of Glaxo Wellcome Pharmaceutical Factory.

Objectively speaking, this kind of bidding is beneficial to the ultimate consumer, so the British Labour Party rejected the Conservative Party's "Hong Kong Imported Drugs Bill" in Parliament, and the Conservative Party was not discouraged and put forward a proposal to increase the tax rate on imported drugs, requiring a tax increase on all foreign exports to the UK.

Since it was a job for voters at the pharmaceutical plant, the Labour Party agreed to the bill. However, as soon as the bill was passed, and before it was approved by the prime minister, the big stick of free trade in the United States came to protest strongly against the British bill.

Since Bayer's penicillin has not yet been sold to the North American market, and it is only competing with Pfizer in the overseas market, the painless Americans are only concerned about the tax rate of American drugs entering the British market at the moment, so in the end, this bill to raise taxes died at the Prime Minister due to protests in the United States.

The German copycat Bayer penicillin on the British market has fallen with the latest ex-factory price of $12 a box of Glaxo Wellcome, and the price of a box of $10 has been listed.

After the bill to increase taxes on imported drugs collapsed, the price of penicillin in Bayer in Germany collapsed again, and the helpless Glaxo Wellcome could only immediately follow up and offer a price of $9 a box. Britain is the stronghold of Glaxo Wellcome, and Glaxo Wellcome will accompany Glaxo Wellcome to the end no matter what.

Still, Glaxo Wellcome is a big profit compared to the cost price of $1 for a box of six bottles, which is one reason why the British government was ultimately reluctant to raise import duties. It's really because the windfall profits formed under the price monopoly of Glaxo Wellcome are too unspeakable, and they have affected the improvement of the level of medical security of the British people. Lowering prices through external competition is also a way to please voters.

Unexpectedly, after the passage of the bill, the price of Penicillin in Bayer, Germany, on the market, plunged even more unscrupulously, and Bayer Penicillin fought a price war, falling one price a day, and finally dropped to $1.5 a box. You know, although the cost price of Glaxo Wellcome is $1 a box, but considering the cost of the market's sales channels, the $1.5 is also in the meat of Glaxo Wellcome.

Not only that, these penicillins with the German Bayer trademark have also launched 200,000 units and 400,000 units of new goods. This made Glaxo Wellcome completely lose his temper. So Glaxo Wellcome hung up the free card, and used the cost price of $1.5 a box to truce with Bayer, and no longer dared to mark a lower price. God knows how far German goods will keep prices down.