Chapter 705 – Using a medical formula to invest again?
“Victor, who give you permission to sell this inhibitor’s formula?” Mark shouted.
“Mr. George gave permission.”
“But this inhibitor is the main component for the development of our newest drug. What if the other party developed this drug first?”
“What newest drug? The medicine for treating impotence? Do you think people will buy it? They will be too embarrassed to buy it. Even if there is a market for this new drug, Feng Yu also do not need it. China already has this type of medical wine thousand of years ago. I had drunk it before, and my erection lasted the whole night.” Victor replied.
This Mark still thought the medicine he was researching on was miraculous. But China already has this type of medicine since ancient times. This medicine will fill the gap in the market? Bullshit!
“Fine. Stop arguing. Their research will not be as fast as us, and we have 21 million USD of the fund now. We will use this fund to invest in our R&D department. Victor, ii will give you two choices. First, you will be the Deputy CEO for the Asia region, and you will be based in Tokyo. There will be lots of opportunities there, and you can easily get promotions. Secondly, the Deputy CEO for the North American market. Your working location is in New York. You will be closer to home, but it will be difficult for you to be promoted.”
“I pick New York. I miss my family.”
George was disappointed with Victor, but he still kept his promise and agreed to let Victor stay in New York. After all, Victor had helped the company made lots of money. Those two inhibitor formulas were only worth a few million USD at most. That means Victor had sold the useless research data for more than 10 million USD. He deserved to be rewarded.
Furthermore, Victor had managed the Chinese market well, and he had proved himself there.
Victor thanked George several times before he left. Mark was still arguing with George. George waved his hand: “You should go back now and oversee the clinical tests. We have already reached the clinical trials phase. Even if they discover the effects of this drug, they still have to undergo clinical trials. By the time they developed this medicine successfully, we will have launched the medicine in the market.”
Back at China, Feng Yu immediately fly to Bing City. As for the bribes received by Professor Wang and Liu Michael, Feng Yu told them to keep it. However, Feng Yu was surprised by Professor Wang’s actions. He had donated every single cent to charities.
Feng Yu did not go back on his words. He helped Professor Wang to get the approval for his son to go to the US to further his studies and all his expenses in the US will be covered by Feng Yu. He will not let Professor Wang’s son work part-time in the US.
Liu Michael also donated his money. He told Feng Yu that he felt uneasy to keep the bribes. Feng Yu laughed and bought a bungalow for Liu Michael as his reward.
Feng Yu had spent a total of 25 million USD, but he felt the money spent was worth it.
Back at Bing City, Feng Yu wanted to use this medical formula to increase his stakes in Bing City Pharmaceutical Enterprise during the company’s annual meeting. But Bing City’s representative of state-owned Assets Supervision and Administration Commission of the State Council (SASAC) strongly rejected him.
All this while, the rest of the shareholders do not want Feng Yu to increase his stakes in the company. Now, Feng Yu appears with some medical research data, claiming its some medicine formulas and tried to use it to invest in the company.
Even if the rest of the shareholders agrees, but how can you value these formulas as 200 million RMB? Who are you trying to fool? Bing City Pharmaceutical Enterprise registered value was only 360 million RMB. If we allow you to value these formulas as 200 million, then you will be the biggest shareholder of this company.
Furthermore, what sort of research data is worth so much? Cancer treatment drugs?
Huh? Medicine to treat that type of illness?
Nonsense! It will be a disgrace to produce this type of medicine.
Other than Wu Zhigang, no one agreed to Feng Yu’s demands. The rest of the shareholders do not object Feng Yu to use medical formulas to invest in the company, but they cannot accept that this formula is worth 200 million RMB!
Wu Zhigang firmly supported Feng Yu. He was a stanched supporter of Feng Yu and trusted him fully.
“Manager Feng Yu says that this formula is worth 200 million, then it is worth 200 million. You all say he is trying to cheat the company’s money? What a joke. Do you know how much is Manager Feng’s annual donation to the schools? Do you know much he earns from Bing City Machinery Company? Just the profits from Tai Hua Trading is more than this amount. Does he need to come and cheat you all?”
“Gang Zhi, it’s fine that they don’t understand. At most, I will buy another pharmaceutical factory to produce this medicine. They will regret it when they can’t get a share of the profits.” Feng Yu patted Wu Zhigang’s shoulders, telling him to calm down.
Feng Yu understands what these people were thinking. If he was in their position, he will also not believe that this formula is worth 200 million RMB. If it was really worth 200 million, how long will it take to recover this amount?
Also, if Feng Yu were to use the value of this formula to increase his stakes in the company, he will become the biggest shareholder. The City Government will never agree.
Now, Bing City Pharmaceutical Enterprise was making high profits, and all the shareholders were very happy with the returns. Their vitamins and health medicine products had brought over 100 million RMB of profits. It also pushes the sales of their other medicines. This year, the company will get at least 200 million RMB of profits.
Next year, the profits should be higher as Bing City Pharmaceutical Enterprise’s brand becomes more famous. The forecasted profits for the coming year was more than 300 million RMB.
3 years later, when Bing City Pharmaceutical Enterprise got listed, the share prices should increase by more than 5 times. It might even be more than 10 times. The value of the company should be over 5 billion RMB then. The company will be one of the top companies in China and even the whole of Asia.
Also, Bing City Pharmaceutical Enterprise paid a high amount of taxes to the City Government and had help the government subsidizes many projects. Feng Yu had never opposed to these.
This was a company with great potential. The City will not let Feng Yu become the biggest shareholder. They do not want to see this company becomes another Bing City Machinery, where Feng Yu had the final say in everything.
This incident was reported to Zhang Ruiqiang by the General Manager of Bing City Pharmaceutical. Zhang Ruiqiang immediately called Feng Yu to go over to his office. He also wants to know why Feng Yu felt his medicine formula was worth 200 million RMB.
When Feng Yu arrived at Zhang Ruiqiang’s office, Secretary Liu immediately prepare a cup of tea for him. He does not want Feng Yu to ransack the leader’s cabinet and waste his tea leaves.
Feng Yu looked at Secretary Liu. He was satisfied with him. Look, people need to be trained. This person is so hardworking now. I must also get a secretary for myself. But the secretary must be a girl.
Who wants a male secretary? Feng Yu also do not have a lot of work. He had handed over almost all his work to others, and all he had to do was to sit there can count his money. Every time he looks at the financial reports of his company, he will calculate how much was his share, and he will be in a good mood.
“Are you also thinking that I am trying to cheat others with this medicine formula, and it is not worth 200 million?” Feng Yu asked after he sat down.