Becoming Rich with Daily Scavenging APP-Chapter 434: Pharmaceutical Research and Development
Today’s intel, medical breakthrough: An artificial blood company is seeking investment, and investing in this company now is an opportunity.
Contact information for relevant personnel is attached on the second page.
Is it really an investment opportunity with a pharmaceutical company?
Having read this, Chen Yiyang was very curious. This was his first time encountering an investment opportunity in this industry.
Based on the relevant information he had seen before.
Currently, the domestic pharmaceutical companies are many and chaotic; although there are quite a number of private enterprises, most large private pharmaceutical companies primarily focus on the production and sale of generic drugs.
The small ones are purely a pandemonium, with hardly any capable ones.
So, after collecting information, Chen Yiyang’s investment company assistant suggested not investing in this industry.
In fact, there’s no need for suggestion at all, as the investment value of an industry can be gauged by whether or not internet giants enter it.
Because domestic leading internet giants each have very ample cash flow.
They hold large amounts of cash and seek investments everywhere, yet they don’t enter pharmaceutical industry investment, at most they hype health concepts, run internet pharmacies selling medicine, which shows that this industry indeed lacks investment value.
However, as a wealthy person, Chen Yiyang naturally hopes the medical industry can develop, allowing him to live longer and spend money for a few more years.
After all, given his current net worth, it’s very difficult to spend all his money before he dies.
So Chen Yiyang instructed his assistant to contact the company, and then told his assistant to inform the boss there that he’d be coming for a visit.
The headquarters of this pharmaceutical company happens to be in Jinling.
Thus, on his way back to Lin’an, Chen Yiyang got off the plane early at Jinling to visit this pharmaceutical company.
"Mr. Chen, welcome to our New Snow Company."
Upon arriving at the entrance of the pharmaceutical company, Chen Yiyang was greeted by a middle-aged man dressed in very simple clothes.
"Hello, I’m Chen Yiyang."
"Hello Mr. Chen, my name is Zhang Yuyun, I’m the boss of New Snow."
Warmly, Zhang Yuyun ushered Chen Yiyang inside the company.
In the meeting room, after Chen Yiyang sat down, Zhang Yuyun personally served him a cup of tea.
"Mr. Chen, I really didn’t expect that nowadays someone is willing to invest in pharmaceutical companies. It’s truly not easy."
"Oh? Are pharmaceutical companies facing tough times in recent years?" Chen Yiyang casually asked.
"More than just tough times, it’s practically a dark period, and it’s the kind where there’s no end in sight."
"Is it that serious?" Chen Yiyang scrutinized Zhang Yuyun with a skeptical look, wondering if he was saying this to evoke sympathy.
"It really is that serious." Zhang Yuyun, candidly, sat beside Chen Yiyang and began to explain.
"A few years ago, when the economy was good, there was indeed a lot of hot money flowing into this industry.
But very soon with the unfavorable big environment, investments in our industry don’t reap quick returns.
So it completely entered a dark period. Large companies can make money, but they don’t put much effort into R&D.
Small companies, on the other hand, are done for; like our kind of R&D enterprise, we can’t get funding for R&D at all."
Pausing, Zhang Yuyun continued, "Companies like ours are also called Biotech, specializing in biological tech R&D and production.
We don’t sell generic drugs, focusing on the R&D of innovative drugs, so before a new drug is developed, we basically have no income."
"Isn’t the profit from developing a new drug quite high? Why don’t outside investors invest, and why don’t major pharmaceutical companies in the industry invest in you?" Chen Yiyang curiously asked.
"Major pharmaceutical companies have very mature business models and stable income. They generally prefer to outright buy or collaborate with companies like ours to develop new drugs.
But with the current poor economic conditions, these major companies won’t invest unless they see clinical data. But the problem now is that we don’t have the money to carry out clinical trials. It’s extremely difficult not only to apply for them but also incredibly expensive!"
After listening to Zhang Yuyun for a while, Chen Yiyang roughly understood how the pharmaceutical industry operates.
Large pharmaceutical companies pursue stability, preferring to sell generic drugs to earn hard cash rather than boldly engage in R&D themselves.
This leaves the heavy R&D task to small R&D companies in the pharmaceutical industry.
If R&D progress is made, or the first phase of clinical data looks good.
Then these large pharmaceutical companies will support these small R&D firms to continue their research through acquisition or investment.
In times of ample economic resources, most major pharmaceutical companies tend to invest in research before seeing the first phase clinical data from small R&D firms, helping them conduct clinical trials.
But now all major pharmaceutical firms are tightening their belts, mostly refusing to invest without seeing first phase clinical data.
Yet small R&D firms don’t have enough money to sustain themselves through a first phase clinical trial.
This results in a double bind, forcing most R&D companies into bankruptcy.
Having heard Zhang Yuyun’s account, Chen Yiyang could only feel that Zhang Yuyun indeed lacks funding.
Otherwise, a typical startup wouldn’t disclose such difficulties to investors; it would be like openly inviting investors to take advantage by setting harsh investment conditions.
The reason for this is likely Zhang Yuyun’s internal demand that as long as funding comes in to continue their R&D, conditions are irrelevant.
Judging by this, even if Chen Yiyang signed a betting agreement with them, the other party would agree to it immediately.
"What is your current research direction?"
For the time being putting other aspects aside, Chen Yiyang inquired curiously about what New Snow Pharmaceutical was currently researching.
"What we are developing is not a conventional pharmaceutical product but artificial blood." Zhang Yuyun replied.
"Artificial blood?" Chen Yiyang perked up upon hearing the term.
This is a very lucrative business.
Currently, seventy percent of the global plasma market comes from the United States, with an average export of plasma products exceeding two hundred billion US dollars annually.
If artificial blood could replace these plasma products, Chen Yiyang could definitely become the world’s richest person.
"Um, what we mean by artificial blood might be a bit different from what you understand."
Seeing the excitement in Chen Yiyang’s eyes, Zhang Yuyun realized Chen Yiyang must have misunderstood.
So he hurriedly added, "What I refer to as artificial blood is not artificially manufacturing something identical to the blood flowing in the human body from nothing.
Rather, it’s a product suitable for medical use based on natural blood."
"Not artificial, but requires natural blood for production?" Chen Yiyang was a bit confused.
If the raw material for artificial blood requires natural blood, what kind of artificial blood is that, is it simply diluting natural blood and deeming it artificial blood?
