Chapter 880 Traditional Chinese Medicine
Simon turned the information in his hand and rubbed his face on Janet's head, saying: "The structure of the medical industry is not as stable as that of industries such as energy and telecommunications, because not only will there be various new diseases in human society, but the overall development and transformation of this industry is much faster than that of fields such as energy and telecommunications. No medical industry giant can continue to flourish with one or two drugs or technology. This is our opportunity."
Janet illuminated his head, and was very comfortable being rubbed by Simon just now, and came over again. She was not very interested in this issue. She was already tired of helping Simon watch Cersei Capital on weekdays, so she didn't plan to pay more attention to it. She just asked in the tone of the man: "Then what aspects do you plan to start from?"
Simon felt Janet coming over, hugged the woman's waist, and said, "I have had a lot of ideas when I read the information recently. However, I found that these methods conflict with my conscience, which is a test of the moral bottom line."
Janet didn't care, but looked curious: "Say one."
Simon said: "For example, a large number of orphan drug manufacturers or product patents with very small market demand will be acquired to monopolize this market, and then directly increase the price by 10,000 times."
Janet blinked, not quite understanding the term "orphan medicine" that Simon mentioned. However, based on the description of "the market demand is very small", we roughly understand what it is. With a woman's mind, we quickly figured out the joints in it.
If this can be done, the benefits will be a bit crazy.
Thinking of this, Janet could also feel that Simon had no expectations in his tone when he said this, but instead had a hint of mockery. He reached out and touched his man's face. Janet said: "I think governments in various countries would not allow this kind of thing to happen, right?"
Simon turned his head and kissed the woman gently, saying, "Maybe there wasn't before, but it won't be the case in the future?"
"Um?"
"This involves the development trend of the federal medical industry," Simon said, looking down at Janet with a curious look. He knew that she was not so interested. He smiled and said, "According to the information I have read recently, the federal medical industry has begun to show an integration trend like the media industry. At this stage, dozens of large and small pharmaceutical companies in the United States may have only a few giants left in the future like the media industry. At that time, these powerful pharmaceutical giants can easily promote the plan I just mentioned with their lobbying ability to the government authorities and their own resource monopoly."
The integration of pharmaceutical giants is a major trend that Simon discovered in recent research on the American medical industry.
Combined with the information in your mind, the whole vein becomes clearer.
Just like the United States in my memory, Ruihui, is also the world's largest pharmaceutical oligarch. Although it is also an industry giant at this stage, its strength in the American medical industry is not outstanding. Ruihui formed its own market position after several large-scale mergers and acquisitions in the 1990s.
There is another interesting thing about this.
The turning point of Ruihui's industry status was probably in 1997 as I remember. In this year, Ruihui launched the "Vianake" which was later famous. This small blue pill that could sell hundreds of tablets per minute seemed to have also added a stimulant to Ruihui.
The appearance of Simon's big butterfly changed a lot of things, but some things did not change either.
For example, the launch progress of the blue pill.
And, the new technology wave.
The new technology wave in the United States in the 1990s covered not only the Internet, but also the fields of genetic science and biopharmaceuticals. This also caused the pharmaceutical industry, which also developed various new technology concepts to take off its market value in the late 1990s.
Now, because Simon has promoted the outbreak of the Internet industry in advance, the current wave of new technology is almost equivalent to the Internet wave.
Investment in fields such as genetic science and biopharmaceuticals has only begun to turn around in the past year due to overcapacity in the Internet industry, looking for more investment or speculative gimmicks. It is expected that these fields will quickly become part of the new technology wave in the next few years, and at the same time promote the market value of pharmaceutical giants.
Simon chose this time point to enter the US medical industry. In fact, it is also the early stage when the medical industry began to take off its market value and integrate it in large quantities. Entering the market at this time is equivalent to buying at the bottom.
Take Ruihui as an example.
Ruihui's market value has been about $27 billion in recent times. Simon remembers that the peak of the Internet bubble in the past, Ruihui's market value also broke through $200 billion. Perhaps this is also due to Ruihui's massive merger of other companies, but when he entered the market, he just bought Ruihui's stock. In the next few years, even if the new technology bubble bursts, as long as the integration trend of the medical industry does not change, it will be enough to make very generous profits.
Under the eaves of the Tasmanian manor villa.
Janet, who was leaning in Simon's arms, paused for a moment after hearing the man's words, and said, "Dear, if you think, um...nothing, then we won't participate."
"Of course not," Simon quickly refused, lowered his head and kissed Janet on his lips, and said, "You know, I'm not used to being a squeezed person in the food chain. Since the rules and trends are like this, I'm going to go up and occupy the most favorable position for myself."
Janet was so kind: “Yeah.”
Very illusionate.
Simon smiled and pinched the woman's smooth face: "Okay, don't talk about these boring things, what do you want to eat at night?"
Janet immediately became interested: "The weather is so good today, you can barbecue outdoors later."
Simon simply stood up and held up the woman's body: "Then let's prepare together. It's better to arrange such things by yourself."
We continued to spend the weekend in Tasmania, and the family returned to Melbourne for a few days and finally returned to North America on January 15th.
After weighing and thinking during this period, Simon returned to North America and soon began to develop the layout of the Westeros system in the American medical industry.
The first is the simplest stock buying operation.
Simon discussed with Jennifer's father James Rebeld, who was in charge of Westeros, and decided to use the nearly $2 billion in cash out of Daenerys Entertainment's stock to buy stocks of several major American pharmaceutical giants such as Ruihui.
Not only that, Black Rock Asset Management Company, a subsidiary of Cersei Capital, will also quietly enter the market.
This time, it is still a common 4.9% plan.
Just buying 4.9% of the stocks of Ruihui and other companies does not happen to be required to report them, and if necessary in the future, you can cash out at any time.
On the other hand, Apollo Management will form a merger and acquisition consulting team for pharmaceutical companies and launch a special targeted financial funding, so that it can get a share of the medical industry integration wave in the next few years.
At the same time, the Westeros family's political lobbying team has also begun to closely monitor the various policy trends related to the medical industry in Washington.
Multiple strategies go hand in hand.
Simon's plan is that in the next five years, the Westeros system will successfully penetrate into all aspects of the American medical industry system and have considerable voice.
This is also the final plan Simon finalized.
After reading a large number of industry insider information that ordinary people would never see during Australia, Simon realized that in the medical industry, the Westeros system is the wisest choice to stand behind the scenes. After all, in this field, in the eyes of ordinary people, there are countless operations that should go to hell.
Just like the monopoly strategy of ‘orphan medicine’.
The plan Simon and Janet mentioned when he was in Australia is actually what major pharmaceutical giants in the United States were doing later, and even formed a trend.
So much so that many rare disease drugs with very small market demand often soared from a very inconspicuous box of a few dollars a box of rockets to a box of thousands or even tens of thousands of dollars a box of dollars in just a few years.
If it was before the 1990s, this kind of thing was unlikely to happen.
Because at that time, there were still a large number of large pharmaceutical companies in the United States and the competition was very fierce. Moreover, after the United States launched the Orphan Drug Act in 1983, traditional pharmaceutical giants did not value this field at the beginning. Basically, many small companies trying to overtake were sitting.
After the start-up small enterprises developed the corresponding drugs, the prices were very cheap after being introduced to the market due to the constraints of factors such as bargaining power, government regulation and even their own morality.
After the 1990s, the integration of the American medical industry was completed, and pharmaceutical oligarchs such as Ruihui rose. At the same time, they finally noticed orphan pharmaceutical companies and patents scattered like pearls in the market. They began to make large-scale acquisitions. Then, based on their own industry influence, the price was quickly increased by hundreds, thousands, or even tens of thousands of times.
Unlike those small businesses, a group of oligopolies in the pharmaceutical industry not only have strong bargaining power and monopoly strength, but also have a very strong voice at all levels of governments and authorities. They are completely fearless when prices rise. They even require the authorities to enact bills to relax price controls in this area on the grounds that excessive government intervention will affect the enthusiasm of pharmaceutical companies to develop rare diseases.
As a result, the once booming orphan drug field not only quickly changed from affordable drugs to sky-high prices, but also under the monopoly of pharmaceutical oligopolies, the market threshold was greatly raised, and even deliberately pushed the US government to raise the threshold for orphan drug review. The state of blooming when the Orphan Drug Act was just launched in the 1980s quickly disappeared, but it just became a private place for various pharmaceutical giants to share profits.
Later, many patients who were unable to bear the sky-high price of orphan drugs launched large-scale lawsuits against medical giants, and the results basically ended in failure.
So much so that when arranging the Westeros system to enter the medical industry, the words from Marx in "Das Kapital" always popped up in Simon's mind.
Capital comes to the world with sin.
However, Simon did not stop entering this field because of what Janet said, "it's boring."
The world where the strong prey on the weak is obviously fat that is within reach but not hunting. One goes up and the other goes down, but the result will only be that one becomes weaker and weaker.
In addition to these general directions, based on the information I have read during Australia and the sorting of information in memory, Simon also made some small-scale moves.
For example, a company called Gilead in San Francisco.
Gilead, founded in 1987, still achieved nothing until early 1996, and basically nothing happened.
Based on the current situation and the information in memory at this time, Simon roughly pieced together the development trajectory of this company known as the "Apple" in the pharmaceutical industry.
The key to Gilead's success is actually a person.
Donald Rumsfield.
This politician, who served as US Secretary of Defense twice in 1975 and 2001, is currently a member of the board of directors of Gilead.
As I remember, Rumsfield will serve as chairman of Gilead in 1997 and take charge of the company.
Then, in 2001, Rumsfield left office and began to serve as Secretary of Defense of the Bush administration. Gilead also began to take off and became the "Apple" in the pharmaceutical industry by relying on drugs for the treatment of hepatitis C.
Ordinary people can only see four words through these contexts, and their benefits are transferred.
However, most people obviously have no way to know how to litigate.
Simon knew it.
Gilead's most important step is not to acquire a pharmaceutical company that can treat hepatitis C, but to successfully break through the US medical insurance system at a high price!
If anyone knows about Gilead's hepatitis C series of drugs, they will find that the cost of a course of related drugs is nearly 80,000 US dollars, and some of them cost $1,000 US dollars per tablet. Such a high price can't be afforded at all.
Under normal circumstances, if Gilead maintains such high pricing, it will only become a niche drug, and the treatment targets are limited to the rich.
This will not lead to too high revenue.
However, it is surprising that while Gilead maintains high pricing for its own hepatitis C series of drugs, it also miraculously entered the US medical insurance system.
Now, the sky-high price of $80,000 per course of treatment is basically paid by the US government and insurance companies. As long as ordinary Americans have medical insurance and get hepatitis C, they don’t have to spend much money. The US government and insurance companies are completely paying for it.
Americans think they will not suffer any losses on the surface, but where does the money from the US government and insurance companies come from?
It won't fall from the sky.
This seems to be very beneficial to patients, but it is actually the root cause of the abnormally high medical expenses in the United States.
As for the interests involved, it is clear at a glance.
Since the layout has been confirmed, Simon will certainly not let the company go, and plans to push a former Secretary of Defense who is still a member of the board of directors to the position of chairman in advance.
In addition to Gilead, Simon has not forgotten China.
The layout there mainly consists of two aspects: traditional Chinese medicine and health products.
Simon plans to establish some startups in China that specialize in the feasibility of mass production of traditional Chinese medicine. The accumulation of Chinese traditional Chinese medicine over thousands of years is actually a potential gold mine, and it will not be dug in vain.
In addition, the most important thing is actually investment in the health care product field.
There is a very good opportunity here.
A guy who built a building in Zhuhai is about to go bankrupt due to a broken capital chain, which happens to be a very suitable target for support.
Chapter completed!