Sanqing headquarters, in a conference room of the agricultural crop department.
Huang Qin stood at the front with a confident face and was talking.
As the backbone of the genetic laboratory, he and Williams led a research and development team to join the cooperative project between the Crop Department and Syngenta.
After a lot of hard work, we finally achieved great results.
At this moment, he is detailing the progress of his work to his colleagues.
During this time, everyone got along well with each other, so the atmosphere in the conference room was relatively relaxed.
"Everyone, this insect-resistant corn is very effective after editing the insect-resistant and high-yield genes. The control effect on Spodoptera Frugiperda can reach more than 98%. It not only greatly reduces the cost of insect control, but also increases the ear rows of corn. number and grain number per ear, ultimately increasing yield by 31%.”
"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 based on this variety and try to Add more goodness.”
"Everyone knows that the difference between ordinary rice and high-quality rice mainly lies in the content of amylose and amylopectin. This is also 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, so the rice tastes better."
"In the past, to achieve such quality, the conditions for growing rice were very harsh. In addition to artificial fertilization factors, it was also directly related to the temperature during the filling period. Only when the average temperature was between 23 and 25 degrees and the temperature difference between day and night was greater than 10 degrees, protein and amylose content can be ensured to be the lowest, so as to grow rice with the best taste.”
"However, now we only need to use gene editing tools to 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 our country. More than 60% of the population depends on rice as their staple food, so such a new seed has unlimited potential."
"Of course, scientific research is never-ending. This is just a phased research result. We still look forward to continuous progress."
As soon as Huang Qin finished speaking, a burst of warm applause rang out.
As soon as he sat down, Liu Dan, deputy leader of the Syngenta seed team, walked up.
Liu Dan said with excitement on his face: "I have seen all your hard work and dedication during this period. 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 come up with three breakthrough seeds in a short period of time. Next, it depends on planting The final result.”
"I have received news from the seed base. The high-yielding soybeans have germinated and broken through the soil. The seedlings are growing well. When they mature, the yield will be gratifying."
"Sanqing is indeed Sanqing. Everyone in our company admires your technical strength. It takes other scientific research teams several years to make breakthroughs, but you can achieve all this in only a few weeks. It is really shocking." ”
"I can't believe how much earth-shaking changes it will bring when such technological power is invested in China's seed industry, and how much economic value it can bring to the entire agriculture."
"Take this time's genetic corn as an example. There will be tens of billions of yuan in value added every year. Corn is my country's largest food crop. Last year, my country's corn planting area was 600 million acres. If our genetic corn continues to be promoted, , which can increase corn production by 30% per acre and increase value by nearly 500 yuan. This number does not seem too high, but multiplied by 600 million, it is 300 billion, which is an astronomical number."
"In this way, the whole pie will become bigger and everyone involved will benefit."
"Generally, overseas, the price of genetically modified seeds will more than double, but the price increase of our genetic seeds will not be that high. Therefore, in this value chain, farmers and downstream companies will be the biggest beneficiaries."
"Farmers make the bulk of the profits, and we and our dealers also see some profit growth. Only in this way can a positive cycle be formed, with more motivation and capital to invest 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 masters genetic modification controls wealth. I hope we can work together to master this source of wealth."
The conference room instantly burst into even warmer applause.
Everyone's face was flushed, their eyes were shining, and they were excited about the future described by Liu Dan.
****
Changshi, a medium-sized pharmaceutical company named Shenzhou.
The boss Xie Wei was sitting in his office, staring at the five or six letters on the table, his brows furrowed and his face gloomy.
At the end of last year, the cloud of price cuts brought about by centralized purchasing hung over the heads of all pharmaceutical companies.
Everyone is looking forward to the expected improvement at the policy level this year, but before the policy is relaxed, the upstream industry has sent a new "gift".
He received five or six letters about the price increase of raw materials in one day.
These five or six letters included almost all production materials such as APIs, excipients, packaging materials, and chemical raw materials, making this Suzhou pharmaceutical company feel a bit of a biting cold in the coming spring.
Not long ago, he had been keenly aware of the signs of price increases in the market, but he did not expect that the price increase notice would come so quickly.
The letter shows that due to increasingly stringent environmental reviews and rising prices of upstream chemical raw materials, raw material pharmaceutical companies have been forced to raise 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 (raw material for anti-thrombotic and anticoagulant drugs) has also increased by nearly 20%. 200%.
Chinese pharmaceutical companies 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. However, none of the raw material pharmaceutical companies took up the offer, and instead responded with a sharp price increase.
Xie Wei almost vomited out a mouthful of old blood, and felt a sense of boredom in his heart.
There was no way he could get through this day. On the one hand, there was low-priced centralized purchasing, and on the other hand, the price of raw materials increased sharply. He could only struggle desperately in the cracks to see how long he could last.
We can only increase revenue and reduce expenditure, try to avoid popular preparation products, and choose some products that are distinctive, small and refined, with relatively high gross profit. The market for a single product is over 100 million a year, but there are not many manufacturers, maybe only two or three products. .
Of course, Xie Wei himself knew that original drugs were not capable of being produced and could only be made as generic drugs. In this case, it would be difficult to choose a product, with large investment, long cycle and greater uncertainty.
China used to rely on one or two varieties for five or ten years to survive until now.
Xie Wei was pulling his hair and thinking hard about the road to corporate transformation and hard work, when the phone suddenly rang.
"Hi, Mr. Zhao, hello, long time no see, what? Sanqing is looking for outsourced manufacturing and asked me if I'm interested?"
Xie Wei was excited and sat upright in an instant: "Yes, I am very interested. When will you come over to inspect? I will be waiting for you at any time."
After hanging up the phone, he couldn't hold back his excitement. He stood up suddenly and walked around the office. He couldn't be more excited.
The Chinese pharmaceutical giant Sanqing Group is actually looking for outsourced manufacturing. This is like pie in the sky.
As we all know, the gross profit margin of original research drugs is very high, often 80 or 90%, 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 at home and abroad, and its annual output is amazing.
Sanqing has always produced all drugs in its own factories in order to ensure quality, and has not found OEMs even for generic drugs with low profits.
Now there is a sudden change, which obviously sends a clear signal.
In the beginning, we are just looking for OEMs for generic drugs, but in the future, if we do well, we will definitely be able to OEM original drugs.
Even if there is in-depth cooperation with Sanqing in research and development, it is not impossible to transform into cdmo and skyrocket from now on.
There are two types of pharmaceutical company OEMs, one is pure production like Foxconn, which belongs to CMO, and the other is TSMC's model, which is R&D and production OEM, which belongs to CDMO.
Many large domestic pharmaceutical companies are OEMs for global pharmaceutical giants such as Pfizer, Novartis, Bayer and others. They have gradually moved from CMO to CDMO model. Later, they were even able to produce their own original drugs. From this, they became prosperous and their stock prices soared.
Xie Wei only had one thought in his mind at the moment. This was a rare opportunity and he must seize it.
By becoming Sanqing's foundry, firstly, it can release its own excess production capacity; secondly, 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. After years of accumulation, China's production capacity and quality management capabilities are quite good, cost control is also very good, and it has an outstanding reputation in the industry.
However, there is basically no research and development capabilities, so we can only make some generic drugs that are not popular on the street, and the gross profit hovers around 30 to 40%.
Although the profit margin provided by Sanqing may not be as high as that of its own business, under the current general trend, it is valuable 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.
Xie Wei thought of this and walked out of the office excitedly. He wanted to prepare well to meet the strict inspection of the big client.
Three days later, Sanqing and his team arrived as scheduled. In addition to several business staff, there were also two senior executives.
One is Zhao Xiaojie, the purchasing director, and the other is Gu Xian, the generic drug business director.
Xie Wei, like Zhao Xiaojie, is a middle-aged man in his forties. He couldn't help but be surprised to see Gu Xian so young.
However, he did not show any abnormality, but was more attentive.
After welcoming the two people into the office, they exchanged pleasantries and finally learned more details.
"OEM orders are mainly for overseas customers?" Xie Wei suddenly felt mixed feelings.
The worry is that the quality requirements for overseas orders are relatively high, and it is difficult for ordinary pharmaceutical companies to meet the requirements. Moreover, from a global perspective, the cost advantage is not great, and it may not be able to compare with the generic drug giants in Tianzhu.
The good news is that the order volume is definitely large, and we can win by relying on scale. Even if we make small profits but quick turnover, we will still have enough profits.
This will test the pharmaceutical company's management capabilities, and cost and efficiency control are top priorities.
Xie Wei was well prepared for this and quickly took his guests to the workshop for inspection.
Gu Xian is quite satisfied with Shenzhou Pharmaceutical Company. The workshop is very standard and tidy, and the employees are in good spirits. It can be seen that the boss's management level is good.
He and Xie Wei also discussed the production process, and it was obvious that the other party was relatively knowledgeable in technology. He was a technician and was not the kind of veteran who relied purely on worldliness to make a living.
Zhao Xiaojie was quite satisfied with the quotation, and Xie Wei was also very cooperative.
This time he got Wei Kang's instruction to outsource the less profitable generic drug business, so the balance between cost and quality was the focus.
Both parties were quite satisfied with each other's conditions and reached an agreement quickly.
The next step is trial production. Three batches will be trial-produced and a 6-month stability test will be conducted. If the quality is the same as that of the original Sanqing factory, it will be officially recognized and all subsequent orders for generic drugs will be given.
Sanqing will also send employees to stay on site to supervise the production process and processes.
In short, China has made steady progress in the direction of becoming a key foundry.
The next day, Sanqing and his team went to another pharmaceutical factory for inspection.
Xie Wei squinted his eyes and looked at the letters from API companies on his desk, feeling suddenly confident.
"Gan!" There was a ray of light in his eyes, wanting to have a good talk with these bastards who were taking advantage of the fire.
Now that we have a golden thigh and a large number of orders are about to be in hand, 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 must not know the benefits of having a golden thigh.
Thinking of this, he laughed.
The crisis of China Pharmaceutical Enterprises seems to have been resolved before it even arrives.
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