A doctor who travels through two eras
Chapter 430: Acquisition of a Pharmaceutical Factory Costs 15 Billion
Southern Pharmaceutical Factory.
A Coaster van drove into the factory area and several people in executive jackets got out of the car. Lin Sanqi and Yin Lianyi were the last to get off.
As soon as I got off the car, several pharmaceutical executives rushed out of the building. One of them was a middle-aged man in his 50s who rushed straight to Dean Zhang of the School of Pharmacy:
"President Zhang, why didn't you inform us in advance that you were coming to inspect the work?"
Dean Zhang Yuezheng shook hands with the visitor, and then introduced him to Lin Sanqi:
"Student Xiaolin, this is Huang Yushu, the general manager of the Southern Pharmaceutical Factory. He used to be a teacher at our School of Pharmacy, so he is half of your teacher."
"Old Huang, this is the disciple of Dean Wang Chengwen of the School of Clinical Medicine. He is also the boss of Lingnantang Pharmaceutical Company. So we are all family, haha."
Lin Sanqi took advantage of the situation and quickly extended his hand enthusiastically:
"Then I won't call you Mr. Huang anymore. It's more intimate to call you Teacher Huang."
Huang Yushu was also surprised when he saw Lin Sanqi:
"I know Lingnan Hall. It's a new pharmaceutical company that suddenly rose last year. It's incredible. Now everyone in the south knows about it. If you want to buy high-end Chinese medicinal materials, you have to go to Huadu Lingnan Hall. It turns out that Mr. Lin is so young, and he is also our schoolmate."
When it comes to socializing, people always like to build relationships, so the "Huadu Medical University Gang" naturally formed a small circle.
"By the way, Dean Zhang, President Lin, and several other deans are here at the pharmaceutical factory today..."
Dean Zhang Yuezheng nodded at Lin Sanqi and explained:
"Director Lin is very interested in our Southern Pharmaceutical Factory, so today, taking advantage of the Sunday break, we old guys will accompany Xiao Lin to visit the pharmaceutical factory. Old Huang, we are all family, so just give us a factual introduction to the situation of the pharmaceutical factory."
Huang Yushu now has a dual identity. One is the director of Southern Pharmaceutical Factory, and the other is a middle-level cadre and full-time teacher at the School of Pharmacy of Huadu Medical University.
Because the Southern Pharmaceutical Factory is a school-run factory and has not yet undergone shareholding reform, most of its senior executives are full-time teachers, another type of "red-top businessmen."
Dean Zhang Yuezheng said that he would just take a look, and he really meant it. After all, it involved a medium-sized pharmaceutical factory with assets of 15 billion yuan, and it was not something that a small dean like him could have the final say on.
This requires the approval of Huadu Medical University and the State-owned Assets Supervision and Administration Commission of Dongguan Province.
Huang Yushu understood Dean Zhang's hint immediately and asked in a low voice, "Does Xiaolin plan to acquire our pharmaceutical factory or form a joint venture with us?"
Lin Sanqi answered clearly: "If there is an intention to acquire, we will take them all."
Huang Yushu understood and knew how to introduce this pharmaceutical factory, so he led everyone towards the factory.
"Director Lin, our Southern Pharmaceutical Factory currently covers an area of 330 acres and has 240 employees. The types of drugs we have launched are mainly basic antibiotics, such as amoxicillin, azithromycin, etc.
In addition, our products also include Chinese patent medicines, such as Niuhuang Jiedu Tablets, Compound Licorice Mixture, etc. Mr. Lin, this way please, you need to put on isolation clothing, a hat and a mask before entering the workshop. "
Lin Sanqi is a little strange:
"Why do our Southern Pharmaceutical Factory produce both Chinese and Western medicines?"
Huang Yushu said a little embarrassedly:
"There's nothing we can do. Our products are not competitive enough, so we can only produce whatever makes money, whether it's Chinese or Western medicine."
Dean Zhang added:
"Xiao Lin, the productivity of the pharmaceutical factory is not strong, not because our technology is not strong. We have the entire School of Pharmacy behind us. Except for some patented drugs that we cannot produce, what other drug information do we not have?
The problem lies in money. The school has been reluctant to update and upgrade the equipment in the pharmaceutical factory. We have the technology but no equipment, so we still cannot produce any good medicine.
Another thing is that even if we can produce some good drugs, we still don’t have the funds to invest in advertising. Good wine needs to be hidden in a remote alley, so we keep delaying, and now the situation of Southern Pharmaceutical Factory is getting worse and worse.”
Lin Sanqi understood and expressed his regret:
"Yeah, that's true. Other pharmaceutical companies have to set up separate drug research and development departments and invest at least 20% of their profits into laboratories every year. But Nanfang Pharmaceutical Factory doesn't need to do that because we have the technical support of our School of Pharmacy. It's a shame that they still haven't made any progress."
This is the biggest drawback of state-owned enterprises or collective enterprises.
There are too many mothers-in-law, and everyone wants to take care of them.
Multiple management, coupled with rigid systems and lack of vision in leadership, are all reasons why companies ultimately find it difficult to be competitive in the market.
Of course, the principal also has his own difficulties. He will be the principal for a maximum of five years, or at most two or three years, just to gain experience.
Drug research and development and corporate upgrades require huge amounts of money, and are projects with high investments, slow results, and long payback periods.
He lived frugally and invested the limited school funds in the pharmaceutical factory, which in turn affected the school's work.
As a result, I was transferred early and could not wait for the pharmaceutical factory to produce results. In the end, all the benefits were given to those who came later. Only a fool would let others reap the benefits.
Several deans began to change into isolation suits. Yin Lianyi quietly pulled Lin Sanqi:
"Hey, Mr. Huang from the pharmaceutical factory has already said that their equipment is outdated, their drugs lack competitiveness, and they don't have a flagship product. Why did you acquire such a pharmaceutical factory?"
Lin Sanqi gently pinched his girlfriend's hand and comforted her:
"You always look at the return on investment from a financial perspective. Didn't you hear the good news that Manager Huang just said?"
Yin Lianyi blinked, a little confused: "He just said bad news, right? Where is the good news?"
Lin Sanqi was about to roll his eyes, but his girlfriend stepped on his shoe:
"Oh, it hurts. It's enough, I say. Didn't Manager Huang just say that they can produce both Western medicine and Chinese patent medicine, right?"
"Yeah, what's wrong?"
"Stupid, this means that the Southern Pharmaceutical Factory not only has a "Drug Production License" (Western medicine), but also a "Chinese Patent Medicine Production License", and has all the necessary certificates and licenses.
If we buy this pharmaceutical factory, we won't have to worry about applying for these certificates. We can just change them and use them directly. Don't you think it saves time, worry and effort?"
Yin Lianyi agreed when she thought about it. The most frightening thing about running a pharmaceutical factory is not the funding, but the various licenses.
It's not so bad in the southern coastal areas, but in the northern regions, if you want to get a full set of documents, you will be tortured to death. Sometimes, if you don't have the right connections and can't get the documents, you have no place to cry.
After everyone changed into white isolation suits, they entered the workshop.
Manager Huang took the lead and continued the introduction:
"Director Lin, our pharmaceutical factory is now divided into several workshops, such as raw material workshop, extraction workshop, fermentation workshop, granulation workshop, preparation workshop, packaging workshop and other different types of workshops.
What you are seeing now is the extraction workshop, with so many tanks and pipes, which are the fruits of modern technology. Unfortunately, our equipment is more than 20 years old and is far behind the latest trends. "
Dean Zhang was embarrassed to add:
"We are currently unable to meet the GMP clean room standards. It's like a boat sailing in the middle of a river. Others are sailing smoothly, but we are standing still. It would be strange if such a pharmaceutical factory is not eliminated."
Lin Sanqi joked:
"Teacher Zhang, Teacher Huang, if it were someone else, they would praise their factory to the skies when foreign merchants came to inspect. But you guys are the other way around, complaining to me constantly because you're afraid I won't leave."
Dean Zhang also laughed and said:
"We can cheat anyone but our own students, right? Teacher, I have to tell you the truth so that you can make a prepared judgment, right? Otherwise, you will blame me, your teacher, for not reminding you."
Dean Wang smiled and said:
"Don't worry, Xiaolin. With us, the advisory team, Lao Zhang won't dare to kill you."
Hahahaha~~~Several deans started laughing.
Lin Sanqi looked at the outdated equipment, production lines, and the listless appearance of the workers in the pharmaceutical factory and decided to ask more questions himself.
Although Lin Sanqi's money was indeed blown by the wind, 15 billion is really not a small amount.
"Teacher Huang, let me give you an example. If I acquire our Southern Pharmaceutical Factory, I now want to produce a quadruple drug for lung cancer, isoniazid, pyrazinamide, rifampicin, and ethambutol. Do you think our Southern Pharmaceutical Factory's current equipment can produce these drugs? If it can, how long will it take to rebuild? If it can't, how much money will I need to spend to upgrade the production line?"
Huang Yushu also studied biopharmaceuticals, and this kind of question was exactly his major, so he answered confidently:
“Director Lin, if you want to produce other drugs, you really need to make major changes to the production line. But if you want to produce these basic drugs, our production lines are fully sufficient. There are no technical difficulties and the adjustments can be made in a week.
In fact, we also produced tuberculosis drugs in 2001, but later the country introduced a free policy, and we could not compete with the pharmaceutical factory with connections, so we stopped production. At that time, we also used this set of equipment, and we only needed to make some minor adjustments. "
Lin Sanqi glanced at Yin Lianyi with pride, meaning: Look, what a coincidence.
A good horse deserves a good saddle, but now Lin Sanqi doesn't want a good horse, he just wants a donkey that can pull a cart.
This donkey can pull crops, carry people, and pull millstones. It is a multi-purpose donkey and a good helper for ordinary people.
The same applies to the pharmaceutical factory. Lin Sanqi does not need any high-tech pharmaceutical equipment now. What he wants is basic medicine, so of course basic equipment is enough.
Southern Pharmaceutical Factory was exactly the “donkey” he wanted.
"Then Mr. Huang, I have another question. If I want Southern Pharmaceutical Factory to fully produce tuberculosis drugs now, what annual output can it achieve?"
In 1961, there was a country that needed him to provide tuberculosis drugs.
Of course, we won’t need that much in the initial stage, but with 750 outpatient visits a day and the hospital still under expansion, the demand for tuberculosis drugs will only increase in the future.
Huang Yushu thought for a moment:
"It's hard to estimate. The market for tuberculosis drugs is not large, with an estimated annual output value of only more than 1 billion yuan. There are at least a few thousand pharmaceutical factories in the country that can produce tuberculosis drugs, if not tens of thousands. But I estimate that only a dozen are actually producing them.
A dozen pharmaceutical companies share a market worth more than a billion yuan, but their profits are even thinner. Even if the gross profit can reach 20%, the total profit for a year is only two or three hundred million yuan. Therefore, the big tuberculosis drug companies are not interested.
If we let our southern factory produce at full capacity and only produce tuberculosis drugs, I estimate that there will be no problem in supplying the entire southern China market. I can't really say the exact number. "
There are nearly 2 million people in South China, and a small or medium-sized pharmaceutical factory can supply it, so Lin Sanqi can be more assured.
Yin Lianyi had different opinions at this time, but she couldn't say anything in front of everyone. After all, her role was a subordinate and a secretary.
So she took advantage of the break and pulled Lin Sanqi aside:
"Thirteen points, didn't you hear what Manager Huang said just now? The annual profit of the entire tuberculosis market is only two or three hundred million, and that's nationwide. If we look specifically at South China, it's a business worth tens of millions.
It would be nice to make tens of millions a year, but tuberculosis drugs are now included in the national free medicine list. If you want to be on this list, you can't just have money, you also need connections. Does our Lingnan Hall have such upper-level connections?
You spend 15 billion to buy a pharmaceutical factory, and you also need to buy raw materials and upgrade the production line. With such a huge investment, aren’t you afraid of losing money? The key is that we at Lingnan Hall can’t afford 15 billion.”
Lin Sanqi also has his own difficulties.
In fact, his best option is to find a pharmaceutical factory to "customize" tuberculosis drugs. He can place an order for the quantity he wants and just pay more money.
In this way, your assets will be light and the risk will drop sharply. If there is any sign of trouble, you can just run away. It seems to be the best option.
But the amount of anti-tuberculosis drugs he needed was too large. To supply a "country", it was a huge amount that even the drug dealer Dafa could not provide.
The key is not just tuberculosis. As the scale of infectious disease hospitals expands in the future, other infectious diseases will also need to be treated, which will require more types of drugs.
in the country, medicines, like weapons, are strictly monitored by the relevant departments.
Because medicines are medicines when they are used to treat diseases, but they may become "drugs" when used in other places.
The drug administration will definitely ask you why you bought so many drugs? Do you have a drug business license? Where did your drugs go? Did you sell them secretly? Or did you make them into white powder? The crime of operating without a license will be aggravated.
So in order to avoid regulatory troubles, if you have a pharmaceutical factory yourself, then you can decide by yourself how much and how many types you want to produce, right?
As long as he actively pays taxes and does a good job of drug quality control, no one will bother him.
If someone really wants to find fault with something, Lin Sanqi will say that all these medicines are exported to Africa.
Want evidence? That's easy. Just find someone to register a company in an African country and then purchase in the name of that company. The worst that can happen is that you have to pay extra shipping costs.
What? Your regulatory department also needs to investigate? How do you investigate foreign countries?
In a word, in China, as long as you keep the accounts ready, pay more taxes, and do not withhold employees' wages, generally no one will care where the drugs you produce go or whether they are sold.
It was convenient for Lin Sanqi to do something.
In addition, there is another benefit of acquiring a pharmaceutical factory. The 15 billion acquisition funds instantly turned Lingnantang Pharmaceutical Company's assets into negative numbers, and its credit rating directly became CCC or even C.
After the acquisition, the company asked the pharmaceutical factories to produce more drugs, but they could not sell them, resulting in huge losses on paper.
If the drugs cannot be sold, they must be destroyed (taken away by the time traveler) when the time comes, and they can also be destroyed legally and legally to eliminate all evidence and offset the loss.
By then, the money Lingnan Tang earned from selling ginseng will not be enough to cover the losses of Southern Pharmaceutical Factory. This is another typical negative case of young people suffering huge losses due to reckless investment. Do those bad capitals that are eyeing Lingnan Tang still want to swallow up Lingnan Tang?
You want to swallow it? Come on, pay off the 15 billion debt first.
The stubborn capitalist said, I will return the 15 billion, but your ginseng warehouse must belong to me!
Then go to the warehouse and see if there is any ginseng? Any cordyceps? Any jade? Nothing, just a warehouse? Here you go!
Thinking of this, Lin Sanqi became more determined to acquire the Southern Pharmaceutical Factory.
Of course, Lin Sanqi couldn’t tell Yin Lianyi the first reason, but the second reason was completely reasonable.
When Yin Lianyi heard this, she glanced at her boyfriend and thought to herself how wasteful this guy must be to actually buy a pharmaceutical factory worth 15 billion just to intentionally make a loss?
"Thirteen o'clock, how much profit do you think our company can make this year? The pharmaceutical factory is losing money, and that's a real loss of money. Can you make it back by selling ginseng?"
Lin Sanqi could only explain patiently, since she was the boss lady he had chosen:
"Nao, last year and a half, when our company just opened, we generated 40 billion in sales, and the profit, uh, the profit reached 10 billion, right?
This year our Lingnan Hall has become famous, and sales will only get better and better. The key is that we will also increase the sales of Angong Niuhuang Pills and Pianzaihuang this year, which is another profit growth point.
Oh, there will also be various top-grade jade, tea, wood, etc.
Oh my God, you are worried about losing money, but I am worried about whether we have made too much money. Really, I am so worried that I can't sleep at night, thinking about how to lose money. "
Yin Lianyi was amused by her boyfriend's pretense and burst out laughing.
When Lin Sanqi saw that the housekeeper's attitude softened, he quickly added fuel to the fire:
"And our pharmaceutical factory won't lose money. I really have a way to sell these drugs. Even if we only charge a cost price, we can guarantee that we won't lose money, right? So don't worry. When have you ever seen me do business at a loss?"
Yin Lianyi thought so too. Every time he and General Manager Lin Tianhua couldn't figure out something, Lin Sanqi could make money.
In order to make themselves lose money and increase the company's operating costs, they even set up three shell branches, which was purely a waste of money.
"Okay, since you as the boss have already made a plan, then I, as a subordinate, must execute it. But then again, what about the 15 billion acquisition funds? Are you going to use those jade ginseng as collateral?"
Lin Sanqi shakes his head like a rattle:
"The treasures in the warehouse cannot be exposed. Once exposed, they will be targeted by wolves and tigers. We already have a Lingnan Hall Chinese Medicine Clinic to demonstrate our strength.
As for money, we don't have to worry about it. Ahem, Xiangjiang Company still has 30 billion in its account. When the time comes, we will acquire the Southern Pharmaceutical Factory in the name of Hong Kong businessmen and enjoy additional foreign investment treatment."
Yin Lianyi suddenly narrowed her eyes:
"Wait, didn't you say the money in Xiangjiang Company's account wasn't yours? What about the cost of raw materials? Why, are you admitting it's your money now?"
"Ahem, this and that, everyone has some little secrets. Men, after all, need to have their own little treasury, right?"
"Ha ha……"
Yin Lianyi smiled with her lips but not her eyes. Lin Sanqi sighed in his heart. This girlfriend is too shrewd. She is a student majoring in accounting. She is simply a monster and too sensitive.
Unlike Pan Ye, she will obey whatever position you want... (End of this chapter)
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