I can extract side effects.

Chapter 238 Generic Drug Foundry
Sanqing headquarters, in a conference room of the crop department.

Huang Qin stood at the front with a confident face, talking freely.

As the backbone of the genetic laboratory, he and Williams led a research and development team and joined the cooperative project between the crop department and Syngenta.

After a lot of hard work, I finally got great results.

At the moment, he is detailing the work progress to his colleagues.

During this period of time, everyone got along very well, so the atmosphere in the meeting room was relatively relaxed.

"Everyone, after editing the insect-resistant and high-yield genes of this insect-resistant corn, the effect is very good. The control effect against fall armyworm can reach more than 98%. It not only greatly reduces the cost of insect control, but also increases the ear growth of corn. The number of grains per panicle and the number of grains per ear increased by 31% in the end.”

"There is also this rice, which combines the expression of two genes for insect resistance and drought resistance. The effect has reached 95%, and the yield has increased by 11%. Our next direction is to continue to study the genome on the basis of this variety, and try to Add more advantages."

"Everyone knows that the difference between ordinary rice and high-quality rice mainly lies in the content of amylose and amylopectin. This is exactly the next direction of our research. By regulating the expression of starch genes in rice, reducing amylose The content is limited to 20%, the smaller the better, and the better the taste of the rice."

"To achieve such quality in the past, the conditions for growing rice were very harsh. In addition to artificial fertilization factors, it is also directly related to the temperature during the filling period. Only when the average temperature is 23 to 25 degrees, and the temperature difference between day and night is greater than 10 degrees. And the content of amylose can be guaranteed to be the lowest, so as to grow the rice with the best taste."

"However, as long as we use gene editing tools, we can directly edit the relevant genes and cultivate the best seeds. Not only do we not need such harsh conditions, but the yield will also be greatly increased."

"Rice is the most important food crop in my country, and more than 60% of the population takes rice as a staple food, so such a new seed has unlimited potential."

"Of course, scientific research is endless. This is only a phased research result, and we still look forward to continuous improvement."

As soon as Huang Qin finished speaking, there was a burst of warm applause.

As soon as he took his seat, Liu Dan, the deputy leader of the Syngenta seed team, walked up.

Liu Dan said excitedly: "I have seen all your hard work and dedication during this period of time. I am really grateful."

"We will never forget the achievements you have made for the reform of China's seed industry. As Team Leader Huang said just now, we have produced three breakthrough seeds in a short period of time. Next, we need to look at planting The final result."

"I have received news from the seed base that the high-yield soybeans have germinated and broken the ground, and the seedlings are growing well. When they mature, the yield must be gratifying."

"Sanqing is worthy of being Sanqing. Our company admires your technical strength completely. It takes several years for other scientific research teams to make breakthroughs, but it only takes a few weeks for you to achieve all this. It is really shocking. gone."

"I can't believe how earth-shaking changes will occur when such technological power is invested in China's seed industry, and how much economic value it can bring to the entire agriculture."

"Taking this genetic corn as an example, it will add tens of billions of yuan in value every year. Corn is my country's largest food crop. Last year, my country's corn planting area was 6 million mu. If our genetic corn is promoted , can increase the yield of corn by 30% per mu and increase the value by nearly 500 yuan. This figure does not seem too high, but multiplied by 6 million, it is 3000 billion, which is an astronomical figure.”

"That way, the whole pie gets bigger and everyone involved benefits."

"Overseas, the price of genetically modified seeds will more than double, but the price increase of our genetically modified seeds will not be so high. Therefore, in this value chain, farmers and downstream enterprises will be the biggest beneficiaries."

"Farmers make a lot of money, and we and dealers also have some profit growth. Only in this way can a positive cycle be formed, with more motivation and more capital invested in research and development, and continue to make the market bigger and stronger."

"There has always been a saying in the seed industry that whoever controls the genetic modification will control the wealth. I hope we can work together to control this source of wealth."

There was a burst of warmer applause in the conference room.

Everyone's face was flushed, their eyes were shining, and they were very excited about the future described by Liu Dan.

******
In Changshi, a medium-sized pharmaceutical company named Shenzhou.

The boss, Xie Wei, was sitting in the office, staring at the five or six letters on the table, frowning and looking gloomy.

At the end of last year, the cloud of price cuts brought about by centralized procurement hung over the heads of the overall pharmaceutical companies.

Everyone is looking forward to the expected improvement at the policy level this year, but before the policy is loosened, a new "big gift" has been sent from the upstream of the industry.

He received five or six letters in one day about the price increase of raw materials.

These five or six letters included almost all production materials such as raw materials, excipients, packaging materials, and chemical raw materials, which made this Suzhou pharmaceutical company feel a bit of biting cold in the coming spring.

Not long ago, he had been keenly aware of the price increase in the market, but he did not expect that the price increase notice would come so quickly.

The letter shows that due to the increasingly stringent environmental review and the rising price of upstream chemical raw materials, API companies have been forced to go to the Liangshan Mountains and have chosen to increase prices.

The price increase trend of antibiotic raw materials is obvious. Among them, cephalosporin and penicillin intermediates, penicillin industrial salt, and penem intermediates, have reached the highest value in the past two years, while heparin (the raw material of antithrombotic and anticoagulant drugs) has also increased by nearly 200%.

Shenzhou pharmaceutical companies had previously won the bid at a "low price" at the centralized procurement negotiation table. In desperation, they had no choice but to pass the price reduction pressure to the upstream, but no API company accepted the offer, and instead responded with a substantial price increase.

Xie Wei almost vomited out a mouthful of old blood, only feeling bored in his heart.

There is no way to survive this day, with low-price centralized procurement and a sharp increase in the price of raw materials on the one hand, he can only struggle desperately in the cracks to see how long he can last.

We can only increase revenue and reduce expenditure, try to avoid popular preparation products, and choose some distinctive, small and refined products with relatively high gross profit. The market for a single product exceeds [-] million a year, but there are not many manufacturers, and maybe only two or three products are produced. .

Of course, Xie Wei knew in his own mind that the original drug was not capable of producing it, and could only be made as a generic drug. In this case, it was quite difficult to choose a product, the investment was large, the cycle was long, and the uncertainty was greater.

In the past, Shenzhou relied on one or two varieties and ate it for 5 or 10 years before it survived until now.

Xie Wei was pulling his hair, thinking hard about the path of corporate transformation, when the phone rang suddenly.

"Hi, Mr. Zhao, hello, long time no see, what? Sanqing is looking for an outsourced factory, ask me if I'm interested?"

Xie Wei was shocked, and sat upright in an instant: "Yes, I am very interested. When will you come to inspect it? I will be waiting for you at any time."

After hanging up the phone, he couldn't hold back his excitement, stood up abruptly, and kept walking around the office, feeling extremely excited.

Huaxia pharmaceutical giant Sanqing Group is actually looking for an outsourced OEM. This is simply a pie in the sky.

As we all know, the gross profit margin of original research drugs is very high, easily [-] to [-]%, which can be said to be quite huge profits.

Although we don't know the profit margin of Sanqing, everyone knows that its products sell well both at home and abroad, and its annual output is amazing.

Sanqing has always produced all drugs in its own factory in order to ensure quality, and has not found OEMs even for generic drugs with meager profits.

Now there's been a sudden shift, and it's clearly sending a clear signal.

In the beginning, it was just looking for OEM for generic drugs, but in the future, if it is done well, it will definitely be able to manufacture original drugs.

Even, if there is an in-depth cooperation with Sanqing in research and development, it is not impossible to transform into a CDMO and skyrocket from then on.

There are two types of OEMs for pharmaceutical companies, one is pure production like Foxconn, which belongs to CMO, and the other is the model of TSMC, which includes R&D and production, and belongs to CDMO.

Many large domestic pharmaceutical companies are OEMs for the global pharmaceutical giant Pfizer, Novartis and Bayer, step by step from a CMO to a CDMO model, and later even be able to make their own original research drugs, and their stock prices have taken off.

Xie Wei has only one thought in his mind at the moment, this is a rare opportunity, and he must seize it.

Becoming Sanqing's foundry factory can release its excess production capacity, and second, it can be associated with innovative pharmaceutical companies.

Only in this way can we hope to become a high-end player in the pharmaceutical market.

He is also very clear about his own advantages. Accumulated over the years, Shenzhou's production capacity and quality management capabilities are quite good, and its cost control is also very good. It has an outstanding reputation in the industry.

However, there is basically no research and development capability, so they can only make some generic drugs on the bad street, and the gross profit is hovering at [-] to [-]%.

Although the profit margin given by Sanqing may not be as high as its own, under the current general trend, it is already commendable to have a stable and large number of orders. Not only can it avoid the fate of bankruptcy, but it is also enough to gain a firm foothold in the market.

Thinking of this, Xie Wei walked out of the office excitedly. He had to make good preparations to meet the strict inspection of big customers.

Three days later, Sanqing and his team arrived as scheduled. In addition to several business personnel, there were also two executives.

One is Zhao Xiaojie, director of procurement, and the other is Gu Xian, director of generic drug business.

Xie Wei, like Zhao Xiaojie, is a middle-aged man in his 40s. Seeing Gu Xian so young, he couldn't help being a little surprised.

However, he did not show any abnormality, on the contrary, he was more attentive.

After welcoming the two into the office, they exchanged pleasantries and finally learned more details.

"OEM orders are mainly for overseas customers?" Xie Wei felt mixed.

The worry is that the quality requirements of overseas orders are relatively high, and it is difficult for ordinary pharmaceutical companies to pass the customs. Moreover, from a global perspective, the cost advantage is not great, and it may not be comparable to the generic drug giants in Tianzhu.

The good news is that the order volume must be very large, and we can win by relying on scale. Even if the profit is small but the turnover is high, there is still enough profit.

In this way, it will be a test of the management ability of the pharmaceutical factory, and cost and efficiency control are the top priorities.

Xie Wei had already prepared for this, and soon took the guests to the workshop for inspection.

Gu Xian is quite satisfied with Shenzhou Pharmaceutical Company. The workshop is very standardized and tidy, and the employees are in a good state of mind. It can be seen that the boss's management level is good.

He and Xie Wei also discussed the production process, and it can be seen that the other party is quite knowledgeable in technology and belongs to the background of a technician, not the kind of old fritters who rely purely on worldly sophistication.

Zhao Xiaojie was quite satisfied with the quotation, and Xie Wei's cooperation was also very high.

This time, he got Wei Kang's instruction to outsource the generic drug business that doesn't make much money, so the balance between cost and quality is the focus of consideration.

Both parties were fairly satisfied with each other's conditions, and an agreement was quickly reached.

The next step is the trial production. Three batches of trial production will be carried out, and a 6-month stability test will be carried out. If the quality is the same as that of the original Sanqing factory, it will be officially approved, and all subsequent generic drug orders will be placed.

Sanqing will also send employees to stay permanently to supervise the production process and process.

In short, Shenzhou has made steady progress towards the direction of key foundries.

The next day, Sanqing and his team went to another pharmaceutical factory for inspection.

Xie Wei squinted his eyes, looked at the letters from the raw material pharmaceutical companies on the desk, and suddenly gained confidence in his heart.

"Damn!" There was a gleam in his eyes, and he wanted to have a good talk with these bastards who took advantage of the fire to rob.

Now that he has golden thighs and a large number of orders are about to be placed, a more favorable price must be negotiable.

You know, this is a good opportunity to enter the raw material supply chain of Sanqing Group.

These raw material pharmaceutical companies will not be unaware of the benefits of being able to hold a golden thigh.

Thinking of this, he chuckled.

The crisis of Shenzhou pharmaceutical companies seems to have been resolved before it came.

(End of this chapter)