Into Unscientific

Chapter 805 Dealer Selection

"Export license to the EU?"

Hearing Academician Pan's words, Xu Yun was subconsciously stunned for a few seconds.

After all, he had just been in the "Two Bombs and One Satellite" copy for nearly two years, and some of his memories in reality were a little fuzzy.

But soon, he recalled the situation mentioned by Academician Pan.

At that time, several foreign companies led by Advion deliberately created a public opinion killing game about Xu Yun's cat abuse and abortion in order to snipe "One Roaches".

But later, Xu Yun and the University of Science and Technology relied on various hammers to complete the turnaround. One of the most lethal weapons was the online meeting video that Gareth Touré of Varenne Pesticide Company gave to the rabbits.

The video included the images of the heads of several foreign companies, and also included how they were going to guide public opinion against Xu Yun, etc.

After the press conference, this video had a huge impact on the stock prices of several foreign companies. In order to calm the storm as soon as possible, several foreign companies fired the participants and jointly made some compensation to Huadun Biosciences.

The compensation included the agreement to safely send Lu Xiao, now the head of Huadun Biotech's MR project, back to China, and also included the qualification to export "A Roach Killer" to the EU.

You know.

Although China has become the world's largest pesticide producer, with an export ratio of more than 70%.

But the pesticides here mainly refer to glyphosate, which is a non-selective herbicide, which accounts for as much as 54%.

For most domestic chemical drugs, especially the technically difficult neurological insecticides, exporting to the EU is not an easy task.

Because the requirements of Europe and the United States for it are too high.

The threshold for insect killers and insecticides is called CE certification, which 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 IEC 60335-2-59.

If you really compare, the domestic requirements are a little higher.

But just like passing the first-tier line does not mean you can enter Tsinghua and Peking University, after crossing the CE certification threshold, there is still an EU market entry standard to go through.

The market entry standard requires an inactive substance component assessment. If the target is not on the exemption list, it is necessary to carry out the EU chemical registration assessment authorization and EU REACH regulation registration.

In addition.

The European Chemicals Agency also requires that suppliers of active substances must be included in the qualified supplier list, that is, Article 95 corresponding disinfectant products, before they can be put on the EU market.

The whole process involves a lot of opaque links, to put it bluntly, it is mixed with a strong political color.

For today's Huadun Biosciences, this process is completely beyond the scope of the ability.

Therefore, it is no exaggeration to say that the export qualifications sent by several foreign companies this time are really a gift that is hard to come by.

After all, the profit from exports is Daole!

Even if this process requires tariffs and freight costs, the exchange rate between the Chinese currency and foreign currencies is there, and Huadun Biosciences will not lose anything.

"."

Then Xu Yun wiped the non-existent saliva from the corner of his mouth and said to Academician Pan:

"Teacher, if the license is approved, does it mean that our products can be sold abroad immediately?"

"Look, you are anxious again."

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, that is, GMP and GDP, must be determined, right?"

"For example, if your products are exported to Europe, you should also confirm the relationship with the importer first, right?"

"Although these processes are assisted by foreign companies such as the Academy of Sciences and Bayer, at most they can ensure that the process will not be rejected by political factors, and the time spent is still inevitable."

Xu Yun pondered for a moment, and finally nodded gently.

That's right.

I was a little anxious.

The export process of chemical drugs is very complicated. Bayer only helps to solve two types of directives, Directive 2001/83/EC and Regulation (EC) No 726/2004, which is simply the review of the drug itself.

This part of the review has four parts, namely the Centralized Procedure, the Decentralized Procedure, the Mutual Recognition Procedure and the National Procedure.

In addition to the review of the composition and effect of the drug itself, the hardware qualifications of the manufacturer itself also belong to the scope of review.

For example, the GMP and GDP mentioned by Academician Pan refer to good manufacturing practices and drug production quality management standards.

In addition, after the drug obtains the EU entry license, Huadun Biotechnology will also look for cooperative distributors and set prices, which also requires wrangling.

Note that the distributor here does not refer to pharmaceutical companies, but the middlemen between companies and pharmacies.

In the early years, Chinese products such as Kangwang and Piyanping have implemented the regional distributor model, but such distributors are usually individuals who carry out distribution and promotion, which is relatively primitive.

In many cases, the scale of distributors in Europe and the United States is not much lower than that of pharmaceutical companies. They have a large number of distribution resources in pharmacies and hospitals, and they are considered local bosses in the local area.

Reliable distributors can usually provide a wide range of distribution channels, but the intermediary fees they charge will definitely not be too low. Similarly, if you want to find a distributor with low commission, you have to bear the risk of narrow sales channels or even the other party running away with the money.

Therefore, how to choose a distributor is also a problem that needs to be considered.

Then Xu Yun thought about it and asked Academician Pan:

"Teacher, do you have any recommendations on distributors?"

"Recommendations"

Academician Pan touched his chin and asked:

"Xiao Xu, let me first confirm a question. The distributor you want to find should be domestic or state-owned, right?"

Xu Yun nodded. He did focus on state-owned distributors.

After all, after Bayer and other companies promised not to interfere with political means, the long-term sales of "One Roach Killer" in Europe will definitely not be low.

Coupled with the high commissions of cross-border trade, the money that falls into the hands of distributors will not be a small number.

In this case, Xu Yun would definitely prefer to make money for the national team.

Of course.

The reason why he only prefers but does not necessarily require state-owned distributors is mainly because Xu Yun is not sure about the current capabilities of state-owned distributors. If some distributors have state-owned backgrounds but can only distribute 10,000 or 20,000 cockroach medicines a year, Xu Yun will definitely not choose them, and the company's board of directors will certainly not agree.

The bottom line that Xu Yun can accept is 15% of the current distribution capacity of large European distributors.

If 15% can be achieved, then Xu Yun is willing to sacrifice a little bit of the speed of product popularization and work with state-owned distributors to expand their influence in the European chemical industry, which can be regarded as doing his best.

But if even this ratio cannot be achieved, to be honest, there is no point in talking about it.

Return to reality.

After getting Xu Yun's answer, Academician Pan pondered for a while. As a person related to the non-pharmaceutical industry, he could give some fair comments at this time:

"Xiao Xu, the current scale of state-owned distributors in the European and American markets is relatively limited, you have to be mentally prepared for this."

"After all, many Western medicine patents are now in the hands of European and American pharmaceutical companies. I heard reports on this when I attended the executive meeting of the Academy of Sciences last year. The major categories of drugs we currently export are only insulin, eye drops and anesthetics, and some mid-range medical consumables."

"So the state-owned distributor you want. To be honest, there are not many options."

As he said, Academician Pan counted on his fingers:

"The first one must be the European distribution company of the National Medical Group, followed by Yangtze River Pharmaceutical, Guangdong Pharmaceutical, Hengrui, Fosun, and I remember that Zhengda Tianqing has a good scale in Europe. That's about it."

Xu Yun took a pen and wrote down the names of the companies mentioned by Academician Pan, then read them over, and drew a horizontal line in the middle of the two options of Yangtze River Pharmaceutical and Fosun, excluding them.

Academician Pan blinked 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 like some of the former's business methods, and the latter's share situation is a bit complicated, so forget it."

Considering that Academician Pan is his mentor after all, Xu Yun's words are actually quite tactful.

To be honest, he personally has no good feelings towards these two companies.

Yangzijiang Pharmaceutical must first be sure that its R\u0026D capabilities are indeed very strong. The Suhuang cough suppressant produced by Yangzijiang can be said to be one of the most effective Chinese patent medicines on the market, but Yangzijiang Pharmaceutical has a habit, that is, it likes to give doctors huge commissions.

For example, the amlodipine besylate it produces is seven or eight times more expensive than ordinary amlodipine, and the kickbacks given to doctors are as high as two yuan per box.

In addition, the kickbacks for Naoxintong Capsules and Wenxin Granules are also very high, and its dezocine can even be used as the highest amount in many hospitals.

In 2021, Yangtze River Pharmaceutical was fined 764 million yuan by the Food and Drug Administration for monopolistic behavior.

So this is a very complex pharmaceutical company. It definitely has the ability, but it also increases the medical costs of patients a lot.

As for Fosun Pharma, it is its equity issue.

Fosun Pharma is a typical investment company disguised as a pharmaceutical company. Many products are developed and produced by its subsidiaries, but the holding group's R\u0026D strength is average.

So you will find that its stock price is fluctuating most of the time. If there is a favorable event driving it, the stock price will rise, otherwise it will fall.

There are several foreign companies that are Xu Yun's "old acquaintances", and they account for a large proportion, so Xu Yun will definitely not be willing to let them make money.

Looking at Xu Yun with a determined face, Academician Pan quickly nodded:

"Just delete it, you know it in your heart."

"As for the remaining few, I recommend Hengrui and Zhengda Tianqing."

"Oh?"

Xu Yun raised his eyebrows:

"Zhengda Tianqing?"

Hengrui was recommended by Academician Pan within his expectations. After all, Hengrui is a well-known innovative drug company with extremely high annual R\u0026D investment. In the public's view, it has a benign image of a pioneer and is a leader among domestic pharmaceutical companies.

But Xu Yun was a little surprised by Zhengda Tianqing.

Xu Yun didn’t know much about Zhengda Tianqing. In fact, when he heard the word Zhengda, his first reaction was Zhengda Variety Show, and then he would think of this domestic "Little Big Four".

However, Xu Yun’s surprise was expected by Academician Pan. He just smiled calmly:

"Xiao Xu, don’t think that Zhengda Tianqing doesn’t seem to be that famous. It has developed quite well in the field of overseas distribution."

"It is actually a core enterprise under Huaxia Biopharmaceuticals. Thais have a stake but the proportion is not large, and it is also a Thai Chinese family background, that is, the Xie family of the Zhengda Group."

"Among the current state-owned distributors in Europe, Zhengda Tianqing’s annual distribution volume can rank third, and its profit margin is second-of-course, this is related to its main export of medical consumables. With limited volume, the gross profit of consumables must be higher than that of drugs."

Xu Yun finally understood.

So that's it

These days, it's really hard to find a pure-blooded company like Huadun Biosciences, not to mention that the field is a multinational e-commerce, so he can still tolerate a situation like Zhengda Tianqing with a low foreign investment - as long as state-owned assets account for the majority.

The reason why he gave up Fosun before was because the proportion of foreign investment was really high.

And he still has a good impression of the Zhengda Group. The founders Xie Yichu and Xie Shaofei went to Southeast Asia to make a living in the 1920s, which is fundamentally different from Runren.

After Huaxia's investment, the Zhengda Group once sponsored the Zhengda Variety Show, invested in Dayang Motorcycle, and donated money during various disasters. At least as of March 2024, it has not overturned.

"That's right."

Then Academician Pan thought of something and pointed to the handwritten list in front of Xu Yun and said:

"If I remember correctly, Academician Tian's junior brother has just joined the distribution department of Zhengda Tianqing."

"If you can reach an agreement with them, you should be able to get a good middle price, and you can also do them a favor, which is a win-win situation."

Xu Yun was stunned for two seconds:

"Academician Tian, ​​you mean Director Tian?"

Academician Pan nodded.

The Academician Tian he was talking about was Xu Yun's biology mentor Tian Liangwei. When Academician Pan was discussing Xu Yun's defense arrangements with Tian Liangwei, he happened to meet the junior brother Tian Liangwei who came to visit.

At that time, the other party's purpose was to find the School of Medicine of USTC to discuss some student source cooperation, so Academician Pan did not ask more questions, but he also kept this matter in mind.

I didn't expect that the timing would coincide now, and it seemed that there was a chance to do a favor?

Academician Pan, Tian Liangwei's junior, has also heard of him. He has good abilities and good character. However, he did not choose to engage in scientific research but engaged in business operations. Over the past 20 years, he has accumulated a good fortune.

"."

Opposite Academician Pan, Xu Yun's eyes repeatedly scanned the paper several times, and finally clapped his hands vigorously:

"Okay, then choose Zhengda Tianqing!"

Note:

I took a high-speed train for several hours yesterday. A big brother next to me took off his shoes and walked barefoot. The smell was strong.

At the request of several big guys, a leader group was opened. Big guys who meet the fan value can join the group. The general group is also unlocked

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