Reborn in America, I'm serious about making money.
Chapter 162 Pharmacies Outnumber Rice Shops
In fact, what they discussed was not wrong. The cost of a student is very high, while funding is naturally limited. Dahua Pharmaceutical Group has more than 5,000 pharmacies across the country and is expanding into counties.
This is different from supermarkets, which require places with purchasing power. Although in recent years, supermarkets have begun to expand from second-tier to third-tier cities, the pace of development is not as fast as in second-tier cities.
Moreover, they are buying land to build a supermarket, which will also be a regional headquarters, as well as the regional headquarters of Dahua Pharmaceutical.
Under such circumstances, it is no easy feat for Dahua Pharmaceutical Group to allocate hundreds of millions of yuan a year to train these students. When Zhang San received the news, he was able to understand the difficulties faced by the companies below.
He then remembered something: there was a graduate student who often worked for his professor for free until graduation. Of course, whether he graduated or not depended on the student's ability; if he was more capable, he could work for a few more years.
Given this situation, we naturally need to come up with good solutions and implement reforms.
He felt that these students at this time were still the pride of heaven, and were naturally much stronger than the students seven or eight years later. They would naturally not be troubled by academic matters. Therefore, Zhang San came up with a work-study method, dividing these students into two groups, one in the morning class and the other in the afternoon class; they would work in the factory for half a day and study for half a day; the factory was right next to the school, so it didn't matter.
Those who go to the pharmacy will work... no, they'll be doing an internship, studying all day. You could say that this arrangement is necessary because the pharmacy is quite far from the school.
This is called planning ahead, and it's certainly not about saving money, since labor is so cheap these days.
With 5,000 pharmacies nationwide, the amount of medication consumed is enormous. This factory only produces simple oral medications, not for any other reason than to prevent the students here from mishandling injectable medications.
In the southwest, there are also external medicine factories, and in Shandong Province, there are injectable medicines, and so on... In recent years, there have been some gains, with the number of types of medicines increased, and the industry is developing towards a full range of products.
In addition to chemical pharmaceuticals, traditional Chinese medicine companies have also been acquired or invested in.
With 5,000 pharmacies already in operation and rapidly expanding in the future, it's natural to open a store before others.
In first-tier cities, many people have noticed that there are more pharmacies than grain stores.
The requirements for opening a Dahua Pharmaceutical Group store are that there must be at least one Dahua Pharmacy in an area with more than 5,000 people, and the two stores must be more than 500 meters apart and within one kilometer.
Furthermore, it is necessary to establish pharmaceutical logistics warehouses or pharmaceutical supply chains in second-tier cities and above, not necessarily supplying their own chain pharmacies, but also supplying hospitals or other pharmacies.
Although the pharmaceutical industry is not strictly regulated now, they need to operate in the most stringent direction.
The drug regulatory authority will be separated from the health department and established as an independent department. This department will be responsible for implementing international standards such as GMP, GSP, and GLP, and will also publish pharmacopoeias, etc.
On the one hand, it produces a large number of commonly used drugs in mainland China. On the other hand, it changes the packaging, dosage form, or produces generic versions. Dahua Pharmaceutical Group is doing this, preparing to turn the drugs that are currently priced at one yuan per strip into sustained-release formulations, and then increase the added value, which means selling them at a higher price.
At the same time, they acquired some foreign companies, directly buying them and their patents, and then began licensing them to mainland China...
In mainland China, pharmaceutical companies make a lot of money. Since others can make this money, why can't we make it ourselves?
Furthermore, there's another matter that relates to Dahua Pharmaceutical Group: the patent registered by Zhang San has been licensed to Dahua Pharmaceutical Group, and it's currently in the final stage of Phase III clinical trials.
And it's precisely this patent that the other party is currently negotiating with them about.
The drug, *Gouchuanweige*, was initially intended for cardiovascular and cerebrovascular applications. However, they hadn't registered a patent in mainland China, nor had they registered a patent for any specific area. Yet, Zhang San, through haphazard experimentation, somehow got it approved. He hadn't anticipated that his method would infuriate the research team.
They approached Dahua Pharmaceutical Group because they wanted to list globally, so naturally they couldn't overlook the huge mainland market.
The two sides are currently negotiating and trying to find a solution to this problem. Zhang San has registered patents in many places, including international patents, but these are in Europe and the United States. However, mainland China was not a member of these countries at the time. Moreover, many other countries were not included in these countries, which naturally creates loopholes. Furthermore, Zhang San registered these patents earlier than they discovered them, making the matter very complicated.
After much discussion, the two sides finally compromised, with Dahua Pharmaceuticals obtaining the distribution rights in mainland China and agreeing to give a certain percentage of sales commission.
This matter took a month to resolve, and the other party had no choice but to accept the loss. Since there are many procedures involved in importing this drug, this part will be handled by Dahua Pharmaceutical.
The other party is also helpless now. They have already done everything, and then they found some patents, well-packaged patents, and that's why they came to us.
That led to the preceding negotiations, compromises, and cooperation.
This medicine is only sold at Dahua Pharmacy, and it's the only pharmacy in the country that sells it; it comes in a box of two tablets and costs 480 yuan.
This price is really exorbitant. Back when Zhang San heard that a certain medicine sold for 481 yuan a box and only contained two pills, he felt it was too damn expensive.
The pricing power for this drug rests with Dahua Pharmaceutical. As for others saying it's a huge profit? Well, have you never heard of a robber making as much as a drug seller?
This medicine, as soon as it entered the mainland, showed its extraordinary appeal. It is said that not only men but also women came to buy it.
Men buy things for themselves, while women buy things for men; it can be said that both are for the sake of happiness.
Moreover, Zhang San is also developing generic drugs. He hopes to complete them before the patent expires, stockpile them, register them, and make them the mainland's version of Gouchuan Weige.
Zhang San naturally knew about this. Being the sole operator on the mainland was a fantastic title, which made him realize his opportunity to make a lot of money.
Before the New Year in 1996, Dahua chain pharmacies had exceeded 5,500 stores. When this data came out, Zhang San exclaimed, "Wow!"
There's a reason why stores are opening so quickly. Unlike ten years later, pharmacies today are relatively simple, with simpler decorations, because they purchase medicine cabinets, shelves, display cases, etc. in bulk, which are much cheaper.
Once a pharmacy is set up, all the necessary equipment will be delivered immediately; it's a very familiar process.
According to the requirements of Dahua Pharmaceutical Group, the number of chain stores opened this year must exceed 7,000.
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