The Super Rich: Start from when the family business is about to go bankrupt!

Chapter 245 WPG0244: Difficulty of Imitation and Price Discrimination? 134K [Seeking guaranteed monthly ticket]

Currently, the products of Wugengtian Pharmaceutical Group are divided into two categories: traditional and new.

Traditional ones include esomeprazole sodium for injection, aztreonam for injection, methylprednisolone sodium succinate for injection, etc. These are traditional medicines once produced by Wugengtian Pharmaceutical Group.

Their prices are higher than those of their peers, their human resource costs account for a high proportion, and their profits are very low, which has caused Wugengtian Pharmaceutical Group to struggle.

As for new product categories, they include Ningzhi Ruoxue series products, Bachunxiao, Lianghuanxi that have not been publicly launched, and Baishaoyao products that will be launched soon.

The products in the new categories are very expensive and have very high profit margins, and it was thanks to them that Wugengtian Pharmaceutical Group was able to get out of its predicament.

However, the white peony product is slightly different from the previous new products!
Previous new products, whether it was the Ningzhi Ruoxue series, Bachunxiao, or Lianghuanxi, all had restrictions on the origin of raw materials.

For the products successfully developed based on the Peony Project, there are dual versions of the products because An Wuyang invested in "One in a Million Luck".

The regular version of Shuxin Pills can use purchased medicinal materials.

The high-end boutique Shunxin Pills are still restricted by the origin of raw materials.

This situation is different from the Ningzhi Ruoxue series of products. The next-level essence version of the Ningzhi Ruoxue series of products still needs to be mixed with the raw materials produced by the Tianjingyan medicinal material planting base to ensure its effectiveness.

But Shuxin Pills are not necessary!
An Huchun watched An Wuyang frown and look at his phone. He asked casually, "What's wrong?"

Others also looked at An Wuyang, especially Professor Tian Ying, who was secretly nervous.

An Wuyang responded, "I am considering the issue of pricing. Does anyone have any suggestions on pricing?"

Everyone was silent. How could they possibly get involved in such an issue?

Don’t say that people who do scientific research have low EQ!

I don't know where this saying came from?
Although it is not ruled out that some people engaged in scientific research do have low emotional intelligence, it is definitely not a large proportion.

The guys that An Wuyang came into contact with, whether it was Fu Yuhang, Li Zhengkai, or Zheng Bohong, all had very high emotional intelligence.

"Professor Tian, do you have any suggestions?" An Wuyang asked Tian Ying.

Tian Ying shook her head in denial, "I'm only doing research. Regarding the pricing issue, it's up to you, Mr. An and Mr. An, to decide."

Tian Ying jokingly added, "I am more concerned about the bonus now."

An Wuyang replied, "Earlier, Fu and Mo made contributions to Eight Spring Nights. We will give them a GC1 reward at Wugengtian and a bonus of 200 million."

Fu Yuhang and Mo Li both smiled, and it was obvious that they were both somewhat pleased with themselves.

An Wuyang added, "For Professor Tian's breakthrough in the white peony project, we will also give him a GC1 award at Wugengtian, also at 200 million."

"As for the team members, they will be rewarded with one GC3." An Wuyang added.

In Wugengtian’s merit system, GC3 represents a bonus of 5.

Tian Ying felt a little unworthy because her research referred to the white peony root project before Wugengtian, but she did not say it on the spot.

After all, An Wuyang has already set the reward standards. If she refutes An Wuyang, she is questioning An Wuyang's authority!
So Tian Ying responded politely, "Thank you, Mr. An!"

"Dad, I plan to name the ordinary product of the White Peony Project [Safe and Painless Shuxin Pills], abbreviated as Shuxin Pills, and the high-end version will be named [Yin Yang Regulation and Balance Shunxin Pills], abbreviated as Shunxin Pills. What do you think is the more appropriate pricing for the two versions of the products?" An Wuyang asked An Huchun for his opinion again.

An Huchun did not directly give a figure for the price, but explained, "You are now in charge of the group's product sales, so of course you decide the price. However, I would like to make a suggestion. I suggest that the price of the ordinary version of Shuxin Pills should not be too high, so that more customers who need it can afford it."

"As for the high-end version of Shunxin Pills, you can set any price you want," An Huchun added.

This suggestion is very consistent with Anhu Chun’s personality!

However, even without An Huchun's suggestion, An Wuyang would not set a particularly high price for the ordinary version of Shuxin Pills.

Because An Wuyang is not a bad person at heart!

"How about the suggested price of Shuxin Pills being 79 yuan a bottle?" An Wuyang suggested.

"The reference cost excluding tax is 18 yuan. For each bottle of Shuxin Pills, I plan to reserve a profit margin of 27 yuan for distributors. The ex-factory price is set at 52 yuan, and we will retain a profit margin of 34 yuan for ourselves." An Wuyang explained.

There is no need to hide these topics from the people in the R&D center, because hiding them is useless!
Even the R&D personnel from other groups could guess the approximate cost of Shuxin Pills and thus calculate the approximate profit.

In addition, even if Wugengtian retains a profit margin of 34 yuan, it still has to pay 25% corporate income tax and about 2% related costs such as urban construction, education, stamping, and accounting.

In fact, the net profit obtained by Wugengtian Pharmaceutical Group was less than 25 yuan, which is not a very high profit, right?
After all, Wugengtian pays full tax, but what about the five major distributors of Wugengtian?
I can’t guarantee that they will pay the full tax and be safe!

An Wuyang can only guarantee that Wugengtian abides by the law. As for the dealers under Wugengtian, how can An Wuyang guarantee on their behalf?
"In addition, the guide price of 79 yuan is the price in some areas of Xia Country, including Hongkang Island and Maikang Island, but excluding Weiming Island. The dynamic price of NewTai Coin for Weiming Island is set at 179 Xia Country yuan corresponding to the exchange rate." An Wuyang added.

An Wuyang has some racist ideas about the Great Xia Kingdom. Of course, An Wuyang will definitely not admit these things on the surface.

But in actual operation, An Wuyang will do these things.

If someone accuses An Wuyang of regional discrimination and price discrimination, will An Wuyang simply say that the transportation cost is free?

If anyone continues to argue about the details of transportation costs, An Wuyang will say that Shuxin Pills have been specially optimized for the Weiming Island area, with particularly increased costs and quality!

Wugengtian is exporting better products to Weiming Island. Is it a problem if the price is more expensive?
As for how to improve the quality, the worst that can happen is to change to a more refined packaging.

Quality is based on packaging!

Wugengtian Pharmaceutical Group is not a listed company and does not need to disclose financial information to the public. It would be too easy for An Wuyang to find an excuse.

An Huchun frowned slightly, "What about overseas areas?"

"Shuxin Pills and Shunxin Pills should be sold worldwide. How do you plan to set the prices in overseas regions?" An Huchun added.

"How is the progress of overseas patent applications?" An Wuyang asked. "Basically, they have entered the review process. If there are no unexpected events, there will be no problem." An Huchun replied.

An Wuyang looked at Tian Ying again, "Is Shuxin Pills easy to be cracked and copied? Especially the guys in India, they like to make unauthorized illegal generic drugs. Can Shuxin Pills withstand cracking and copying?"

India's laws are so distorted!

Generic drugs are rampant there. Even if pharmaceutical companies there imitate Shuxin Pills, it will be difficult for Wugengtian Pharmaceutical Group to win the lawsuit on India's territory.

After all, the Indian court itself is a big scoundrel!

Facing An Wuyang's question, Tian Ying answered affirmatively, "Don't worry, Mr. An, the difficulty of cracking Shuxin Pills is very high!"

“Simply put, even if we give the formula to India’s pharmaceutical companies, they will not be able to produce the corresponding finished product,” Tian Ying explained.

Tian Ying continued to add, "Shuxin Pills have more than ten kinds of active ingredients. These active ingredients need to participate in the synthesis reaction with each other. How should the more than ten kinds of ingredients react chemically and at what rate should the reaction be controlled? These are all big problems!"

"It is very difficult to make a breakthrough in basic science. If others want to reverse-engineer the manufacturing process of Shuxin Pills, if they only have the formula, it cannot be said to be useless, but at most it is just the first step in a long journey." Tian Ying added.

An Wuyang breathed a sigh of relief!

An Huchun covered his forehead with his hands and couldn't bear to watch, because if An Wuyang knew more professional knowledge in the medical field, he would not ask such a question.

If generic drugs are so easy to make, why do the world's top pharmaceutical companies still produce original drugs?

Let’s talk about acetaminophen, a medicine that ordinary people come into contact with on a daily basis. There are a lot of generic drugs for this thing, and there are hundreds of pharmaceutical companies in Xia country that produce more than a thousand kinds of this product.

However, in reality, there are probably no more than fifty products that have truly obtained the [Generic Drug Consistency Evaluation] certification?
The so-called consistency evaluation of generic drugs means that generic drugs need to reach the same level as original drugs in terms of quality and efficacy.

Anhuchun strongly recommends that users who purchase these medicines, even if they choose generic drugs, should choose products with [Generic Drug Consistency Evaluation] certification.

After all, there are differences between generic drugs and generic drugs.

(↑Generic Drug Consistency Evaluation Certification)
As for the example of Indian Pharmaceutical Company's counterfeit drugs cited by An Wuyang, An Huchun could only say that An Wuyang only knew one side of the story.

India’s generic drug industry is indeed very famous, but the active ingredients of the corresponding drugs are completely different!

For example, if the active ingredient of the original drug is 100 units, and India's generic drug has half of that, that would be a good result.

After all, there is no generic drug consistency evaluation certification in India, and even the imperial court is a makeshift team that doesn't care about these things at all.

Maybe some people think that half the effect is good enough?
However, this is not the case in reality.

Because there is a minimum effective dose red line for active ingredients, if the minimum effective dose is not reached, there will not be much effect.

This is called: talking about the effect without considering the dosage!
It is well known that arsenic is poisonous, but do you know what the lethal dose of arsenic is?

In addition, the differences between generic drugs in dissolution curves and bioequivalence are more professional issues, and it is normal that An Wuyang does not understand them.

In addition, Wugengtian Pharmaceutical Group defines white peony root products as health products rather than original research drugs, so they do not need to be publicly registered and declared, and naturally do not need to submit: prescriptions, processes, impurity research, analytical methods, quality standards and other information.

If other pharmaceutical companies want to imitate Shuxin Pills, they will need to do some research!
In fact, even if Wugengtian Pharmaceutical Group published all the prescriptions, processes, impurity research, analytical methods, quality standards and other information, it would still take at least 12 months for some powerful pharmaceutical companies to imitate Shuxin Pills.

What's more, Wugengtian Pharmaceutical Group will never disclose this information?
This is also the reason why Wugengtian Pharmaceutical Group did not register Shuxin Pills as an original drug.

According to the laws of the Xia Kingdom, if the Wugengtian Pharmaceutical Group wants to register Shuxin Pills as an original drug, it needs to register it with the Xia Kingdom’s pharmaceutical department and fully disclose the prescription, process, impurity research, analytical methods, quality standards and other information.

Once this information is made public, companies that specialize in making generic drugs will be quick to take action, get their hands on all the information, and then conduct reverse research to crack it.

In that case, Wu Geng Tiancai might get into trouble.

Even if those generic drug companies cannot completely replicate Shuxin Pills, and cannot obtain generic drug consistency evaluation certification, they may eventually produce products with inferior effects and lower prices.

Therefore, it is a better choice under the current circumstances not to register Shuxin Pills as an original drug but only as a health product.

If under such circumstances, there is still a genius who cracks the Shuxin Pills, then An Wuyang can only say that the other party is too powerful. But the Wugengtian Pharmaceutical Group did not intend to make too much money from the Shuxin Pills, right?
Once someone really cracks the Shuxin Pill in the future, Wugengtian Pharmaceutical Group can completely lower the price and then make money through the high-end Shunxin Pill.

After An Wuyang determined that Shuxin Pills were extremely difficult to imitate, he decided to further increase the price of Shuxin Pills in overseas markets.

"We treat all overseas regions the same, whether it's Neon, Bald Eagle, Corea, or India, the price is $179 per bottle," An Wuyang explained.

As for whether this price will make it unaffordable for poor people in overseas areas
what?
Does An Wuyang still need to consider this issue?
An Wuyang didn't go to Ledu to sit on the seat of the Big Buddha, so why should he consider this issue?

However, An Wuyang needs to consider another serious problem.

According to the pricing rules set by An Wuyang, Shuxin Pills only cost 79 yuan per portion in Xia Country, and the price on Weiming Island is 179 Xia Country yuan per portion, but the price in overseas regions is 179 US dollars per portion.

The price difference is too huge!

An Wuyang is not worried about being attacked by public opinion and being accused of being a racist, nor is he worried about Wu Gengtian being accused of seed discrimination and regional discrimination. These problems are easy to solve.

At least An Wuyang can solve these problems easily.

It's nothing more than an exchange of interests.

The truly difficult problem to solve is actually the issue of interests.

For example, the people of Xia bought Shuxin Pills at 79 Xia yuan per pack, and then resold them overseas at a relatively cheap price.

What about the resale price of $79?

Compared to the overseas price of $179, this price is really cheap!
But compared to the selling price of 79 Xia Guoyuan, this price makes a lot of money. A bottle of Shuxin Pills can make at least more than yuan. Isn’t that a lot?
An Wuyang believes that such a price gap will definitely give rise to a large number of people who want to take advantage of the situation, and even form a special industrial chain to take advantage of the situation.

So An Wuyang needs to solve this problem first!
If this problem cannot be effectively solved to the greatest extent, then the Wugengtian Pharmaceutical Group will be fleeced by the majority of wool-gathering parties, right?
(End of this chapter)