Chapter 706 – Zhang Ruiqiang’s decision
Out of Feng Yu’s expectations, Zhang Ruiqiang seriously replied: “It is the opposite. I trust you. If you say this is worth 200 million, then it is worth 200 million! I am only curious why is it worth 200 million RMB.”
Feng Yu was stunned. His hand, which was reaching out for the tea leaves stopped in midair: “You believe what I said?”
“Why not? You have never lied to me about these things. Unless you are trying to con me this time.” Zhang Ruiqiang laughed.
Damn! Old Zhang is still dependable during times like this. Look at him. This is why he can be the Mayor of Bing City. He was smarter than those people from the State-owned Assets Supervision and Administration Commission of the State Council (SASAC)! Why would I try to cheat 200 million RMB from them?
“I am not lying to you.” Feng Yu replied honestly.
“Ok, then it’s fine.” Zhang Ruiqiang lit a cigarette and took a puff.
“What do you mean by it’s fine?” Feng Yu was confused.
“I will help you settle this. It is not a problem for this formula to be valued at 200 million. But the share proportion must remain the same.” Zhang Ruiqiang said.
“The City government is willing to increase the investment by more than 200 million?” Feng Yu was curious.
The Bing City Government could afford to increase its investment by 200 million. But this will not be in the City’s budget plan. The City’s budget had been planned long ago.
How will the City cover up this 200 million RMB deficit? Which City’s development project will be postponed?
“The City cannot come up with 200 million. This is why I hope you will give in a little. Give the medicine formula to Bing City Pharmaceutical Enterprise first, and then start the production and sales of this medicine. The City will use our share of profits from the following two years to re-invest into the company, or you can take out 200 million RMB, including interest from our profits. This way, it can be considered that you sold this medicine to the company.” Zhang Ruiqiang told Feng Yu his proposed solution.
This was the most straightforward solution Zhang Ruiqiang could come up with, and it was based on his trust in Feng Yu. If it wasn’t for Feng Yu, Bing City Pharmaceutical Enterprise will also not grow to its current scale. It will still be like in the past, struggling to survive. How could this company get such high profits and became one of the top pharmaceutical company in China?
Feng Yu opened his mouth and then said: “But this medicine is still not developed successfully yet. Also, the clinical trial has not started yet. We cannot produce it.”
“What? This formula is not successful yet?” Zhang Ruiqiang was stunned, and his face changed: “What are you trying to do? You want to value a yet to develop medicine formula for 200 million?!”
“It is not one formula. It is two formulas. Two formulas for inhibitors. We have confirmed the uses for these inhibitors, and I dare to guarantee that the medicine will be a success. But the medicine still needs to undergo clinical trials.”
Zhang Ruiqiang was deep in thoughts. If this was the truth, then he will have no reason to support Feng Yu. Everyone knows about those nutritional medicine formulas. Those medicines were sent straight for test and got the approval fast. The clinical trials for those medicines were very short.
But now, this medicine cannot be produced immediately for profits, and they still need to continue to spend money to research and develop this medicine. This was completely different from the previous medicine formulas.
Secretary Liu, who was listening by the side, suddenly asked: “Manager Feng, I heard that the formula you bought is medicine for treating that type of ailment?”
Zhang Ruiqiang raised his head: “What type of ailment?”
Feng Yu looked at Zhang Ruiqiang. Damn. Old Zhang don’t even know what the medicine is for? No wonder he wanted to support me without hesitations.
“It is for treating impotence in men. To be more specific, erectile dysfunction!” Feng Yu replied calmly.
Zhang Ruiqiang looked into Feng Yu’s eyes and then slowly look down. He had a troubled looked on his face and seems to want to ask Feng Yu some questions.
Feng Yu was furious. Where the hell are you looking at?! Your eyes tell me that you are suspecting that I have some issues and need to develop this drug for myself?
Goddamn! I am only in my early twenties. This is the period where I am the strongest!
“I HAVE NO PROBLEMS!” Feng Yu replied firmly.
Zhang Ruiqiang looked away and replied slowly: “I did not say you have any issues with your body. Why are you trying to explain yourself?”
Feng Yu glared at Zhang Ruiqiang, and Zhang Ruiqiang looked away.
Feng Yu took a few deep breaths to calm himself down. “Based on overseas research, 1 out of every 10 males in the world have erectile dysfunction. Some of them are because of psychological issues, and some are physical problems. This inhibitor is a core component in developing this drug, and it can treat this ailment effectively. The chances of this drug curing this condition are up to 80%. How big do you think this market is?”
Zhang Ruiqiang paused for a while and asked: “Will the men affected admit they have this condition?”
Feng Yu immediately look at Zhang Ruiqiang suspiciously and let him have a feel of being suspected of having this condition.
Zhang Ruiqiang’s face immediately changed. He looks like he was able to transform into Incredible Hulk. No matter how calm he was, he could not stay calm with Feng Yu looking at him like this.
“This is because many people are shy to admit they have this condition, and they will try to seek treatment from unlicensed practitioners. On my way here, I have seen all sorts of advertisements posted on a lamppost, claiming they have their traditional miraculous wine or some pills that will help men. All those “medicines” are not proven, and we do not even know if it is harmful to the bodies of those who took it. This medicine is different. There are little side effects and will not harm the body. Also, it is a prescribed drug.”
In Feng Yu’s previous life, he had seen lots of advertisements about treating men’s problems. Most of these advertisements were dodgy, and the components in their products were weird. It was neither Chinese traditional medicines or Western medicines. The claims in the ads were exaggerated, and even if people were tricked by these companies, they were too embarrassed to look for them. This was because they do not want others to know that they were taking such medicines.
Pfizer’s Sildenafil was effective and was from a reputable pharmaceutical company. What impressed Feng Yu the most was that even CCTV news reported on this drug. This shows how effective this drug was.
“But how will you market this drug? How are you going to sell it?” Zhang Ruiqiang asked.
“This will be a prescription drug. We only need to ask the hospitals that are close to Bing City Pharmaceutical Enterprise to help us promote this medicine. This medicine can also let us enter the overseas market. It will be our flagship medicine in the international market!”
Zhang Ruiqiang was still hesitating. Use this medicine as flagship medicine for the company? Then Bing City Pharmaceutical will be known as a company that specialized in such illness. It will not be suitable for their brand reputation.
“This medicine will bring at least a few hundred million USD of profits for our company in the future.”
Feng Yu remembered Pfizer’s annual profits exceeding over 1 billion USD in his previous life. But that was because this medicine was already well known all over the world. The profits for the first few years were not that high, and Pfizer had spent quite a lot to market it.
“A few hundred million USD of profits? Will the profits be so high?” Zhang Ruiqiang’s eyes turned into $$ signs.
“That’s the minimum!” Feng Yu confidently replied.
Zhang Ruiqiang took in a deep breath and said: “Fine. Leave this to me. But we will only return you 200 million after our profits exceed that amount. Also, the interest will only start after this medicine enters the market!”
Feng Yu nodded: “Although I am taken advantage of by the City Government, I do not mind. Deal!”