Chapter 805 Dealer’s Choice
"Permit to export to EU?"
Hearing what Academician Pan said, Xu Yun was stunned for a few seconds.
After all, he had just stayed in the two-bomb-one-star dungeon for two years, and some of his memories in reality were already a bit blurry.
But soon, he recalled the situation mentioned by Academician Pan.
At that time, several foreign companies headed by Advion deliberately launched a public opinion campaign about Xu Yun's cat abuse and abortion in order to attack "One Mantis".
However, Xu Yun and HKUST later relied on various practical measures to complete the comeback. One of the very lethal weapons was the online meeting video given to the rabbits by Gareth Toure of Varenne Pesticide Company.
The video included images of the heads of several foreign companies, and how they wanted to guide public opinion against Xu Yun, etc.
This video directly had a huge impact on the stock prices of several foreign companies after the press conference. In order to calm the storm as soon as possible, several foreign companies not only fired the participants, but also jointly made some compensation to Huadun Biotech.
The compensation included an agreement to safely send Lu Xiao, now the head of Huadun Biotech's MR project, back to China safely, and also included the qualification to obtain the qualification of "One Mantis Killer" for export to the EU.
To know.
Don't look at it. Although China has become the world's largest pesticide producer, its foreign export ratio exceeds 70%.
But the pesticide here mainly refers to glyphosate, which is a non-selective herbicide, which accounts for as much as 54%.
For most domestically produced chemical drugs, especially the more technically difficult neurological insecticides, exporting to the EU is not an easy task.
Because the requirements for it in Europe and the United States are too high.
The threshold for insect zappers and insecticides is called CE certification. This is actually very easy to pass, as long as the product does not endanger the safety of humans and animals.
The national standard in this regard is GB4706.76, and the international standard is IEC60335-2-59.
If we really want to compare, domestic requirements are a bit higher.
But just like if you pass the first line, it doesn't mean you can enter Qingbei. If you cross the CE certification threshold, there is still an EU market entry standard to meet.
The market entry standards require an assessment of inactive substance components. If the target is not in the exemption list, the EU's chemical registration assessment authorization and registration under the EUREACH regulations need to be carried out.
Other than that.
The European Chemicals Agency also requires suppliers of active substances to be included in the list of qualified suppliers, that is, the corresponding disinfectant products of Article 95 before they can be put on the EU market.
The entire process involves a large number of opaque links, and to put it bluntly, it is heavily political.
For today's Huadun Biotech, this process is completely beyond the capabilities of a super-category field.
Therefore, the export qualifications sent by several foreign companies this time are, without exaggeration, a gift that is hard to find.
After all, the profit from exporting is Daole!
Even if tariffs and freight costs are added to this process, the exchange rate between Chinese currency and foreign currencies is there, and Huadun Biotech will not lose money no matter what.
"."
Then Xu Yun wiped the non-existent saliva from the corner of his mouth and said to Academician Pan:
"Teacher, if the license is issued, does it mean that our products can be sold abroad immediately?"
"Look, it's urgent."
Academician Pan smiled and nodded at Xu Yun, looking like an elder who might recite poetry at any time:
"Although your company's drug export license has been approved, there are still many processes to go through. For example, the factory's qualifications, namely GMP and GDP, must be confirmed, right?"
"For another example, if your products are exported to Europe, you should establish a relationship with the importer first, right?"
"Although these processes are assisted by foreign companies such as the Academy of Sciences and Bayer, the most they do is ensure that the process will not be rejected by political factors, and the time it takes is inevitable."
Xu Yun pondered for a moment, and finally nodded slightly.
Too.
I was a little anxious.
The export process of chemical drugs is very troublesome. Bayer only helps solve the two types of directives: Directive2001/83/EC and Regulation (EC) No726/2004. Simply put, it is the review of the drugs themselves.
There are four parts to the review in this part, namely CentralizedProcedure, DecentralizedProcedure, MutualRecognitionProcedure and NationalProcedure.
In addition to the review of the ingredients and effects of the drug itself, the manufacturer's own hardware qualifications are also subject to review.
For example, the GMP and GDP mentioned by Academician Pan refer to good manufacturing practices and pharmaceutical production quality management practices.
In addition, after the drug has received permission to enter the European Union, Huadun Biotech still needs to find cooperative distributors and set prices. This part also needs to be negotiated.
Note that the distributor here does not refer to the pharmaceutical company, but the middleman between the company and the pharmacy.
In the early years, China's Kangwang and Piyanping products implemented the regional dealer model, but such dealers usually carried out product distribution and promotion individually, which was relatively primitive.
Large-scale distributor companies in Europe and the United States are often not even much smaller than pharmaceutical companies in terms of size. They control a large number of distribution resources in pharmacies and hospitals, and they can be called the local snakes.
Reliable dealers can usually provide a wide range of distribution channels, but the intermediate fees they charge will certainly not be too low. Similarly, if you want to find a dealer with low fees, you will have to bear the responsibility of narrow sales or even the other party running away with the money. risk.
Therefore, how to choose a dealer is also an issue that needs to be considered.
Then Xu Yun thought for a while and asked Academician Pan:
"Teacher, do you have any recommendations for dealers?"
“Recommended”
Academician Pan touched his chin and asked:
"Xiao Xu, let me confirm one question first. The dealer you want to find should have a domestic or state-owned background, right?"
Xu Yun nodded. He indeed focused more on state-owned dealers.
After all, after Bayer and other companies have pledged not to use political means to interfere, the long-term sales of ‘One Mantis Killer’ in Europe are bound to not be much lower.
Coupled with the historically high commissions on cross-border trade, the amount of money falling into the hands of dealers will not be a small figure.
In this case, Xu Yun is definitely inclined to make money for the national team.
Of course.
The main reason why he prefers but does not necessarily require state-owned dealers is that Xu Yun is still not sure about the current capabilities of state-owned dealers - if some dealers have a state-owned background but can only distribute 10,000 to 20,000 cockroach medicines a year, Then Xu Yun would definitely not choose it, and the company's board of directors would definitely not agree.
The bottom line Xu Yun can accept is 15% of the existing distribution capacity of large European dealers.
If it can reach 15%, then Xu Yun is willing to sacrifice a little bit of the product's popularization speed to work with state-owned distributors to expand their influence in the European chemical industry, which can be regarded as contributing within his ability.
But if you can't even reach this ratio, to be honest, there is no point in talking about it.
His eyes returned to reality.
After getting Xu Yun's answer, Academician Pan pondered for a while. As a person related to the non-pharmaceutical industry, he can give some fair comments at this time:
"Xiao Xu, the current scale of state-owned dealers in the European and American markets is relatively limited, so you must be mentally prepared for this."
"After all, many Western medicine patents are now in the hands of European and American pharmaceutical companies. I heard a report on this when I attended the executive meeting of the Academy of Sciences last year. The main categories of drugs we currently export are insulin, eye drops and narcotics. The others are Some mid-range medical supplies ”
"So the state-owned dealer you want, to be honest, there are not many options."
As he spoke, Academician Pan clasped his fingers and lined up:
"The first one is definitely the European distribution company of Sinopharm Group, followed by Yangtze River Pharmaceuticals, GPHL, Hengrui and Fosun. In addition, I remember that Chia Tai Tianqing has a good size in Europe, and that's about it."
Xu Yun took a pen and wrote down the names of the companies mentioned by Academician Pan. Then he looked over them and crossed the middle of the two options, Yangzijiang Pharmaceuticals and Fosun, to exclude them.
Academician Pan blinked when he saw this and asked curiously:
"Xiao Xu, why did you delete these two?"
Xu Yun looked up at his teacher and circled the two with a pen:
"I don't really like some of the business methods of the former, and the share situation of the latter is a bit complicated, so I'd better forget it."
Considering that Academician Pan is his mentor after all, Xu Yun's words are actually rather euphemistic.
To be honest, he personally doesn't have a good impression of these two companies.
First of all, Yangzijiang Pharmaceutical must be sure that its research and development capabilities are indeed very strong. Suhuang Cough produced by Yangzijiang can be said to be one of the most effective Chinese patent medicines on the market. However, Yangzijiang Pharmaceutical has a habit of prescribing to doctors. Huge commission.
For example, the levamlodipine besylate it produces is seven to eight times more expensive than ordinary amlodipine, and the rebate to doctors is as high as two yuan per box
In addition, the rebates for Naoxintong Capsules and Wenxin Granules are also very high, and their dezocine can even be used for the highest amount in many hospitals
In 2021, Yangzijiang Pharmaceutical was fined 764 million yuan by the Food and Drug Administration for monopolistic behavior.
So this is a very complex pharmaceutical company, and it definitely has capabilities, but it also increases the medical costs for patients a lot.
As for Fosun Pharma, it’s a question of its equity.
Fosun Pharma is a typical investment company disguised as a pharmaceutical company. Many products are developed and produced by its subsidiaries. On the contrary, the holding group's R&D strength is average.
So you will find that its stock price fluctuates most of the time. Driven by good events, the stock price will rise, and vice versa.
Several of those foreign-funded companies are Xu Yun’s ‘old acquaintances’, and they account for a high proportion, so Xu Yun will definitely not be willing to let them make money.
Looking at Xu Yun with a determined look on his face, Academician Pan quickly nodded:
"Delete it, just delete it. Just know it."
"As for the remaining ones, I prefer Hengrui and Zhengda Tianqing."
"Oh?"
Xu Yun raised his eyebrows:
"It's sunny?"
He expected Hengrui to be recommended by Academician Pan. After all, Hengrui is a well-known innovative pharmaceutical company with extremely high investment in R&D every year. It has a benign image as a pioneer in the public eye. Among domestic pharmaceutical companies, It can be called the leader.
But Xu Yun was a little surprised when the weather was clear.
Xu Yun didn’t know much about Zhengda Tianqing. Many times when he heard the word Zhengda, the first thing that came to his mind was the Zhengda Variety Show, and then he thought of this one of the “Big Four” in China.
However, Xu Yun's surprise was as expected by Academician Pan, who smiled calmly:
"Xiao Xu, although Zhengda Tianqing doesn't seem to be that famous, it is actually developing quite well in the field of foreign distribution."
"It is actually the core enterprise of Sihuaxia Biopharmaceuticals. Thais have shares but not a large proportion. Moreover, they are from a Thai-Chinese family background, that is, the Xie family of CP Group."
“Among the current European state-owned dealers, Zhengda Tianqing’s annual distribution volume ranks third, and its profit margin is second. Of course, this is related to its main export of medical consumables. In a market with limited volume, In this case, the gross profit of consumables is definitely higher than that of pharmaceuticals.”
Only then did Xu Yun realize.
That’s it
It’s a bit difficult to find a pure-blood company like Huadun Biotech these days, let alone a multinational e-commerce company. Therefore, a situation like Zhengda Tianqing with low foreign investment can still be tolerated - as long as It’s enough that state-owned assets account for the majority.
The reason why he gave up on Fosun before was because the proportion of foreign capital was too high.
And he still has a good impression of Zhengda Group. The founders Xie Yichu and Xie Shaofei went to Nanyang to make a living in the 1920s, and they are essentially different from Runren.
After investing in China, CP Group has sponsored the CP Variety Show and invested in Dayang Motorcycles. It is also unambiguous when it should donate money during various disasters. At least as of March 2024, it has not overturned.
"That's right."
Then Academician Pan thought of something else, pointed at the handwritten list in front of Xu Yun and said:
"If I remember correctly, Academician Tian's junior brother has just joined Zhengda Tianqing's distribution department."
"If you can reach an agreement with them, firstly, you should be able to get a good middle price, and secondly, you can sell the other party a favor. It's a win-win situation."
Xu Yun was stunned for two seconds when he heard this:
"Academician Tian, you mean Director Tian?"
Academician Pan nodded.
The Academician Tian he was talking about was Xu Yun's biology tutor Tian Liangwei. When Academician Pan was discussing Xu Yun's defense arrangements with Tian Liangwei, he happened to meet the junior Tian Liangwei who came to visit him.
At that time, the other party's purpose was to discuss some student cooperation with the Faculty of Medicine of HKUST, so Academician Pan did not ask further questions, but he also kept the matter in mind.
Unexpectedly, the timing is coincidental, and it seems that there is a chance to be a favor?
Tian Liangwei's younger brother, Academician Pan, had also heard about it. He had good abilities and conduct, but he did not choose to devote himself to scientific research and instead engaged in commercial operations. Over the past twenty years, he has also accumulated a good net worth.
"."
Opposite Academician Pan, Xu Yun glanced at the paper several times, and finally clapped his hands vigorously:
"Okay, then choose the sunny weather!" Note:
Yesterday, I sat on the high-speed train for several hours. The elder brother next to me took off his shoes and went barefoot. It smelled so strong.
At the request of several big guys, a leader group has been opened. Big guys who meet the fan value can join the group, and the general group has also been unlocked
(End of chapter)