nucmednet Chapter 588 The Capitalists Smell the Delicious Meat Again
Chapter 588 The Capitalists Smell the Delicious Meat Again
Meng Chuan just signed his name on the document.
In less than ten minutes, I received a bank transfer notification on my phone—10 billion yuan was successfully deducted.
From then on, Sinovac Biotech, once a leading company in the pharmaceutical industry, became a wholly foreign-owned enterprise under Meng Chuan.
Over the past month, whaling has mobilized more than 80 billion yuan of offshore funds.
They precisely targeted every line of defense of Sinovac Biotech.
Due to the accounting fraud scandal, rating agencies downgraded Sinovac Biotech's credit rating.
This caused Sinovac Biotech's corporate bond yields to plummet again by at least 20%.
Whale hunters took advantage of the situation to dump circulating shares through dozens of anonymous accounts, creating a panic sell-off.
Ultimately, it also choked the supply chain.
The disruption of overseas raw material supplies to Sinovac Biotech has forced its production lines to shut down.
Everything was done flawlessly.
Those in the industry can see that Sinovac Biotech has been strangled by capital!
Of course, it's also because Sinovac Biotech itself has some dirty laundry.
Therefore, it was effortless for whale hunters to strangle it.
The "Shaifu Fund" is a foreign fund that once held a 37% stake in Sinovac Biotech.
In the end, they chose to sacrifice a pawn to save the king—taking a liquidation sum and making a graceful exit.
At its peak, the company's market value exceeded 5378 billion.
Research and development investment has remained above 15% of revenue for three consecutive years.
They also hold 142 international patents.
The production technology for the HPV vaccine broke Merck's monopoly in the pharmaceutical industry.
After being liquidated and delisted, even the once priceless patents are about to expire due to a lack of maintenance funds, with 23 of them already expiring.
Ultimately, they could only sell all the assets to Meng Chuan for 10 billion yuan.
This is absolutely the absolute lowest price imaginable.
Sinovac Biotech's intangible assets, such as drug approval numbers and patented technologies, are worth more than 10 billion yuan.
Don't underestimate the importance of drug approval numbers.
This product requires strict regulatory approval to obtain qualifications such as production licenses and market access licenses.
Moreover, the approval process is lengthy and difficult.
It creates a natural barrier to entry for new entrants, thus becoming an extremely scarce intangible asset.
There are also patented technologies, including pharmaceutical companies' drug formulations, production processes, and formulation technologies.
Especially in vaccine development, it involves complex cutting-edge technologies such as bioengineering and immunology, as well as mature technology platforms.
For example, inactivated vaccine technology, mRNA technology, and viral vector technology.
These were the very foundation upon which Sinovac Biotech once stood.
These things, let alone 100 billion, would be worth 10 billion and there would be a lot of people vying for them.
However, even after Sinovac Biotech's liquidation, the debt of over 1800 billion yuan will not be enough to cover it.
There's still a huge hole of around 500 billion to fill.
To acquire it for 10 billion, one would have to take on the 500 billion debt hole of Sinovac Biotech.
In other words, it would take 510 billion yuan to acquire Sinovac Biotech in its entirety.
Among the major pharmaceutical companies affected by the stock market crash, there aren't many that can come up with 510 billion yuan at once.
Unfortunately, Meng Chuan has nothing but money.
Meng Chuan acquired a company with a market value of over 500 billion yuan for over 5000 billion yuan.
This is still incredibly cheap.
This also explains the essence of capital:
Capital is the most ruthless, but also the most fair.
When investors deem Sinovac useless, it becomes dirt cheap.
But if Meng Chuan could bring it back to life, the cabbage would turn into gold.
To turn it into gold, the following month was also the busiest time for Meng Chuan.
Meng Chuan first moved Sinovac's production workshops and research labs to the City of Entrepreneurship Dreams.
It was renamed Hongda Pharmaceutical Technology Company.
They then angrily spent another 200 billion on equipment upgrades.
Transform the laboratory into one that meets P3 biosafety standards.
They also poached six top scientists with high salaries, two of whom were nominees for the Nobel Prize in Physiology or Medicine.
They also received over 100,000 self-submitted resumes.
After all, Meng Chuan's influence is too strong right now.
As soon as the news of Meng Chuan's acquisition of Sinovac broke, a large number of people came to apply.
Because everyone knows that working with Meng Chuan, even as an ordinary researcher, offers a promising future and can even bring glory to one's family.
After all, the benefits in the entrepreneurial dream city are too good.
With the prestigious reputation of "City of Entrepreneurship Dreams" and "Meng Chuan," Meng Chuan has no trouble recruiting people.
While Meng Chuan was busy preparing for the opening of Hongda Pharmaceutical Technology Company.
Two "uninvited guests" arrived at the entrance of the grand building.
Hongda Pharmaceutical Technology Company owns an entire 50-story research and office building in the City of Dreams for Entrepreneurship.
This is the fourth phase of the Entrepreneurship Dream City project, which Meng Chuan deliberately left out.
When Zheng Donglai and Xu Jiu arrived with a thick business plan, they found workers hanging up a new signboard.
“‘Hongda Pharmaceutical Technology Company’, what a grand name!”
Xu Jiu looked up at the four golden characters and laughed.
"Gentlemen, you've come at a very inopportune time! I'm busy right now!"
Meng Chuan walked out of the gate and said half-jokingly.
Because Xu Jiu just called Meng Chuan.
Meng Chuan hadn't seen Xu Jiu and Zheng Dong for a long time.
These two are considered Meng Chuan's old buddies.
"What a coincidence, we're free right now! Is there anything you need me to help out with? I might not be good at hanging up the sign, but how about I clean up for you? It would be our honor to sweep the floor for our richest man, Meng!"
Although Xu Jiu was a woman, she spoke with the demeanor of a great general.
"Mr. Xu, are you insulting me? Come on, let's go inside and talk."
Meng Chuan smiled wryly.
Meng Chuan really dared not neglect these two.
Because they weren't just close friends with Meng Chuan.
They are still shareholders of Mengchuan.
They all own shares in the massive medical supply manufacturing plants in Shanghai.
Moreover, Meng Chuan had a betting agreement with them.
They each invested 100 billion yuan in Mengchuan, acquiring a 2% stake in Hongda Medical Supplies Manufacturing Plant.
Don't underestimate this 2%; Meng Chuan promised them a return of at least 700 billion.
Although they are still far from achieving that 700 billion return.
However, they have already recouped their initial investment of 100 billion.
Upon arriving at the chairman's office, Meng Chuan made tea for Xu Jiu and Zheng Donglai.
After a long chat, Xu Jiu handed over the proposal.
The title page prominently displays the "Additional Investment Plan".
It's obvious that they've set their sights on Meng Chuan's Hongda Pharmaceutical Technology again.
"I bet you capitalists only come here when you need something. You've got your hands on some meat again, haven't you?"
Meng Chuan said with a wry smile.
Hongda Pharmaceutical Technology Company is part of Meng Chuan's preparations for the epidemic.
His original intention was not to allow anyone to invest.
First of all, he is not short of money.
Secondly, what Meng Chuan is about to do is too crazy.
If he cannot be solely owned, he cannot enforce orders!
"Looking across the whole country, is there any capitalist bigger than you?"
Zheng Donglai laughed and said:
"However, you are widely recognized as the most conscientious capitalist. Therefore, we dare not eat the meat, we only want to drink a sip of soup. We just don't know if President Meng can take pity on us."