Sail across the sea

Chapter 331 I need to ask the headquarters for instructions

"Twenty million US dollars, 10-year exclusive license, is limited to outside of China. There are no restrictions on production authorization for companies within China," said Zhao Zhaoxin.

As soon as these words were spoken, before Ogier and Lassiter could make any comments, the eyes of all the Chinese present widened.

What? 2000 million US dollars, and it’s only a 10-year license, which means they can collect more money in the future.

10 million for 2000 years, 200 million a year, the national financial allocation to the Institute of Microbiology is less than this amount. By the way, the figure is less than 200 million in RMB, how dare Zhao Zhaoxin offer such a high price of 200 million US dollars to foreigners?

Although they thought so, they were all smart people and knew that this was not the right time to discuss their imagination with Zhao Zhaoxin. They decided to wait and see how foreigners would react. The people at the Institute of Microbiology also had another plan in mind:
What if the foreigner doesn’t know what’s funny and really agrees?

The one-time income of 2000 million US dollars, even if the state finances take most of it, the amount left to the Institute of Microbiology will not be a small amount, right? That means bonuses, benefits, and a new family housing are no longer a dream. Does this mean that I can have an independent study room in a year?

The glasses were daydreaming, but Ogier had recovered. He shook his head and said:
"Mr. Zhao, your offer is totally unacceptable to us. In fact, the operation of a business is not as simple as you outsiders see.

“If the two-step fermentation method is to be put into industrial application, I mean, large-scale industrial application like Lloyd’s Pharmaceuticals, rather than small-scale production like a few small companies in your country, a lot of process development needs to be done, which also requires costs.

"In addition, the fermentation process currently used by Lowe's is already very mature. If we want to switch to a two-step fermentation process, we need to update a large number of equipment, and the investment is calculated in billions. Therefore, your calculation just now is not valid."

"Really?" Zhao Zhaoxin showed a faint smile on his face and did not comment on Ogel's statement.

Only he knew that he was in a state of confusion at that moment. On the one hand, he felt that Law's might accept a higher offer, which meant that the Institute of Microbiology would be able to generate tens of millions of dollars in foreign exchange income, which was unique in the entire Academy of Sciences system. On the other hand, he was worried that his judgment was wrong. If the negotiation failed because the offer was too high and the other party walked away, he would have made a fool of himself.

As Shan Jinwen said, $10 is not a small amount. If Zhao Zhaoxin's psychological expectations had not been raised by a ridiculously young college student, he would never have been able to refuse the temptation of $10.

It's a gamble! At worst, I can give up this business for now. I still have the 10 yuan paid by Canghua Science and Trade every year, which is also a good political achievement.

"That's true." Ogier replied stiffly.

This is a typical case of using a stick to hit a wolf, both sides are afraid. Zhao Zhaoxin is worried that Ogel will overturn the table, and Ogel is also worried that Zhao Zhaoxin will overturn the table.
Ogel's confidence was based on his belief that Zhao Zhaoxin did not understand international rules. If Zhao Zhaoxin understood international rules, or for example, if Zhao Zhaoxin was replaced by Ogel himself, then he would have the guts to reject Lowe's offer outright.

If Lowe's saw the value of the two-step fermentation method, then Ray's Pharmaceuticals in the United States and Imperial Pharmaceuticals in Japan might also see it. Even if they haven't realized it yet, Zhao Zhaoxin, inspired by Lowe's, can take the initiative to contact them and ask them to quote a price.

Wright Pharmaceuticals is also a traditional vitamin C manufacturer. Due to its slightly higher production costs than Lowe's, it lacks market competitiveness and has been rumored to withdraw from the vitamin C market in recent years. If such a company switches to the Chinese two-step fermentation method and reduces production costs, it will have the strength to compete with Lowe's and will be able to recover its initial investment in just a few years. Will Wright's decision-makers do this?

Ogle didn't dare to gamble.

To be precise, it was Lowe's decision-makers who didn't want to take the gamble, and Ogel's ideas were simply insignificant.

Vitamin C can provide Lowe's with $2 million in profits a year. Why would Lowe's take the risk of spending tens of thousands of dollars in patent fees?
"If that's the case..." Zhao Zhaoxin stopped speaking halfway.

"The price we can accept is $600 million, ... for a 20-year license." Ogel rushed to quote his price.

He was afraid that Zhao Zhaoxin would say, "Let's go ask Rui's company," which would put him in a passive position. He had to divert Zhao Zhaoxin's attention with a visible price before Zhao Zhaoxin came up with such an idea.

"1200 million, 10 years." Zhao Zhaoxin said firmly. At this moment, he judged that Ogel did not want to overturn the table, and the other party had a soft spot.

"I think I need to ask headquarters for instructions." Ogel took a step back.

Zhao Zhaoxin's offer was within the base price given to him by the headquarters. If the deal was completed at this price, Ogel could report it to the headquarters.

I am just an employee. Is it necessary for me to think so much for my boss? I have already discussed with the other party according to the headquarters' strategy. Practice has shown that the other party is not a rookie. If I can't fool them, then I will close the deal at the normal business cooperation price. What's wrong with that?

What's more, 1200 million US dollars is still 300 million lower than the highest price given by the headquarters. This is also my own achievement, isn't it?
Hearing Ogel's answer, Zhao Zhaoxin finally let go of his worries. At this moment, he felt that his back was soaked. Damn, business negotiations are not something that humans should do, especially negotiations involving tens of millions of dollars.

6◇9◇Book◇Bar

Next, the two sides exchanged some questions about the improvement of the two-step fermentation process, mainly several researchers from the Institute of Microbiology gave introductions, and Ogel and Lassiter symbolically took notes. They all knew that Lowe's did not intend to adopt this process, so there was no need to care about any improvements to this process.

The meeting ended in a cordial and friendly atmosphere. Ogel said that after asking the headquarters for instructions, he would visit the Institute of Microbiology again and sign a patent licensing contract with the Institute of Microbiology. Zhao Zhaoxin also claimed that he would ask his superiors for instructions. If the two sides were to sign a contract, a higher-level person should be present.

Shan Jinwen had a lot to say to Zhao Zhaoxin, but he was an escort of Ogel and others, and it was not convenient for him to leave Ogel and chat with Zhao Zhaoxin alone. He could only half-jokingly and half-seriously ask Zhao Zhaoxin to find an opportunity to treat him to a meal. Of course, Zhao Zhaoxin happily agreed.

After seeing off Oger and his party, Zhao Zhaoxin did not bother to explain anything to his curious colleagues, and hurried back to his office and made a phone call far away in Maolin Province:
"Hello, is this Xiao Gao? I want to tell you..."

(End of this chapter)