Simon turned the page of the information in his hand, rubbed his face against Janet's head, and said: "The pattern of the medical industry is not as stable as that of energy, telecommunications and other industries, because human society will not only always have various Such new diseases have emerged, and the overall development and change speed of this industry is much faster than that of energy, telecommunications and other fields. No medical industry giant can survive for a long time with one or two drugs or technologies. This is our opportunity."
Janet nodded her head. She was very comfortable being rubbed by Simon just now, and she moved closer. She was actually not very interested in this question. She was already very tired helping Simon look at Cersei Capital on weekdays, so she didn't want to pay attention to it. Duo just followed the man's tone and asked, "Then where do you plan to start?"
Simon felt Janet coming close to him, and he put his arm around the woman's waist and said: "I have had a lot of ideas after reading the information recently. However, I found that these methods are somewhat in conflict with my conscience, and they test the bottom line of morality. .”
Janet didn't care, but looked curious: "Tell me something."
Simon said: “For example, a large number of orphan drug manufacturers or product patents with very small market demand are acquired to monopolize the market, and then directly increase the price by 10,000 times.”
Janet blinked, not quite understanding what Simon meant by the term 'orphan drug'. However, based on the description of 'very small market demand', we can roughly understand what it is. With a woman's mind, she can quickly figure out the joints involved.
If this could really be done, the benefits would be a bit crazy.
Thinking of this, Janet could also feel that there was no expectation in Simon's tone when he said these words, but rather a hint of ridicule. Touching her man's face with her hand, Janet said: "I don't think any government will allow this kind of thing to happen, right?"
Simon turned his head and kissed the woman's palm gently, and said, "Maybe it didn't happen before, but it won't necessarily happen in the future?"
"Um?"
"This involves the development trend of the federal medical industry," Simon said. He lowered his head and saw Janet's curious face. Knowing that she was actually not that interested, he smiled and continued: "According to the information I have read recently, the federal government The medical industry has begun to see a consolidation trend like the media industry. At this stage, there are dozens of large and small pharmaceutical companies in the United States. In the future, just like the media industry, only a few giants will be left. By then, these powerful pharmaceutical giants With its ability to lobby government authorities and its ability to monopolize resources, it is very easy to promote the plan I just mentioned."
The consolidation of pharmaceutical giants is a major trend discovered by Simon during his recent research on the U.S. medical industry.
Combined with the information in the mind, the entire context becomes clearer.
Just like in memory, the United States is also the world's largest pharmaceutical oligarch Ruihui. Although it is also an industry giant at this stage, its strength in the American medical industry is not outstanding. Ruihui formed its market position only 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 in my memory. In this year, Ruihui launched the world-famous 'Viagra'. This little blue pill that could sell hundreds of pills every minute seems to have also Ruihui was given a dose of stimulant.
The appearance of Simon, the big butterfly, changed many things, but some things did not change.
For example, the launch progress of the little blue pill.
And, new technological waves.
The new technology wave in the United States in the 1990s covered not only the Internet, but also fields such as genetic science and biopharmaceuticals. This also caused the pharmaceutical industry, which also developed various new technological concepts, to soar in market value in the late 1990s.
Now, because Simon has promoted the explosion of the Internet industry in advance, the current new technology wave is almost equivalent to the Internet wave.
As for investment in fields such as genetic science and biopharmaceuticals, it was only in the past year that due to the overcapacity of funds in the Internet industry, we began to look for more investments or speculative gimmicks. It is expected that these fields will quickly become new technologies in the next few years. Part of the wave also drove the market value of pharmaceutical giants to explode.
Simon chose this time to enter the U.S. medical industry. In fact, it is also the early stage of the medical industry's market value taking off and large-scale consolidation. Entering the market at this time is equivalent to a dip.
Take Ruihui for example.
The current market value of Ruihui in the recent period is only about US$27 billion. Simon remembered, however, that at the peak of the Internet bubble, Ruihui's market value once exceeded US$200 billion. Perhaps this is also due to Ruihui's large-scale mergers with other companies, but entering the market at this time is just to buy 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 obtain very good results. Huge profits.
Under the eaves of the Manor House in Tasmania.
Janet, who was leaning in Simon's arms, paused for a moment after hearing what the man said, and said, "Dear, if you think, um... it's boring, then we won't participate."
"Of course not," Simon quickly refused. He lowered his head and kissed Janet on the lips, saying, "You know, I'm not used to being an exploited person in the food chain. Since the rules and trends are like this, then I’m going to go up and occupy the most advantageous position for myself.”
Janet said kindly: "Yeah."
Very nymphomaniacal.
Simon smiled and pinched the woman's smooth cheek: "Okay, if you don't talk about these boring things, what do you want to eat tonight?"
Janet suddenly became interested: "The weather is so good today, we can have a barbecue outdoors later."
Simon simply stood up and lifted the woman's body casually: "Then let's go prepare together. It's better to arrange this kind of thing by ourselves."
Continuing to spend the weekend in Tasmania, the family returned to Melbourne for a few days, and finally returned to North America on January 15th.
After this period of weighing and thinking, Simon returned to North America and quickly began to lay out the Westeros system in the American medical industry.
The first is the simplest stock buying operation.
Simon discussed with James Raybould, James Raybould, James Raybould, Jennifer's father who is responsible for managing the Westeros company, and decided to use all the nearly 2 billion US dollars in funds obtained from selling Daenerys Entertainment shares to buy several major American companies such as Ruihui. Pharmaceutical giant stocks.
Not only that, Black Rock Asset Management, a subsidiary of Cersei Capital, will also quietly enter the market.
This time it is still the common 4.9% plan.
Just buying 4.9% of the stocks of companies such as Ruihui does not require filing, and you can cash out at any time if necessary in the future.
On the other hand, Apollo Management will form a mergers and acquisitions advisory team for pharmaceutical companies and launch specialized targeted fund financing, so that it can get a share of the wave of consolidation in the medical industry in the next few years.
At the same time, the political lobbying team of the Westeros family has also begun to pay close attention to the various policy trends of the Washington authorities related to the medical industry.
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 say.
This is also the plan that Simon finally finalized.
After reading a large amount of industry insider information that ordinary people could never see during his stay in Australia, Simon realized that in the medical industry, the Westerosi system was the wisest choice to stand behind the scenes. After all, this field was considered by ordinary people to be under control. There are really countless operations in hell.
Like the 'orphan drug' monopoly strategy.
The plan that Simon talked about with Janet when he was in Australia was actually what he remembered that the major pharmaceutical giants in the United States were doing later, and even formed a trend.
As a result, the price of many rare disease drugs with very little market demand has skyrocketed from a very humble few dollars per box to thousands or even tens of thousands of dollars per box in just a few years.
Before the 1990s, this would have been unlikely to happen.
Because at that time, there were still a lot of large pharmaceutical companies in the United States, and competition was very fierce. Moreover, after the United States introduced the Orphan Drug Act in 1983, traditional pharmaceutical giants did not pay attention to this field at first. Basically, they were dominated by many small companies trying to overtake in corners.
After small start-up companies develop corresponding drugs, due to constraints such as bargaining power, government regulations, and even their own ethics, the prices after they are initially introduced to the market are quite cheap.
After the 1990s, the integration of the U.S. medical industry was completed, and pharmaceutical oligarchs such as Ruihui emerged. At the same time, they finally noticed the orphan drug companies and patents scattered across the market like pearls, and began to cast a net for large-scale acquisitions. Then, based on their own industry The influence will quickly increase the price by hundreds, thousands or even tens of thousands of times.
Unlike those small businesses, the oligarchs in the pharmaceutical industry not only have strong bargaining power and monopoly power, but also have a very strong say in government authorities at all levels. They are completely emboldened to raise prices, and even excessive government intervention will affect pharmaceutical companies. The enthusiasm for research and development of rare diseases and other reasons require the authorities to enact a bill to relax price controls in this field.
As a result, the once booming orphan drug field not only quickly changed from affordable drugs to sky-high-priced drugs, but also under the monopoly of pharmaceutical oligarchs, the market threshold was greatly increased, and even deliberately pushed the US government to raise the orphan drug review threshold, so that in the 80s The state of a hundred flowers blooming when the Orphan Drug Act was first introduced in the 1990s soon ceased, and it just became a private land for the profit sharing of various pharmaceutical giants.
Later, many patients who could not afford the sky-high price of orphan drugs launched large-scale lawsuits against medical giants, and the results basically ended in failure.
As a result, in the process of arranging the Westeros system to enter the medical industry, the sentence in Marx's "Das Kapital" always appeared in Simon's mind.
Capital comes to the world with sin.
However, Simon did not stop getting involved in this field just because Janet said it was 'boring'.
In a world where the weak eat the strong, if you don't hunt for the fat that is easily available, you will only become weaker and weaker.
In addition to these general layouts, Simon also made some small-scale moves based on the materials he read during his time in Australia and sorting out the information in his memory.
For example, a company called Gilead in San Francisco.
Gilead, founded in 1987, had accomplished nothing until early 1996. Basically, it had accomplished nothing.
Based on the current situation and the information in his memory, Simon roughly pieced together the development trajectory of this company known as the 'Apple Company' of the pharmaceutical industry.
The key to Gilead's success is actually one person.
Donald Rumsfeld.
The politician, who served as the U.S. Secretary of Defense twice in 1975 and 2001, spanning more than two decades, is currently a member of Gilead's board of directors.
In memory, Rumsfeld will serve as chairman of Gilead in 1997 and take charge of the company.
Then, in 2001, Rumsfeld left office and began to serve as the Secretary of Defense in the George W. Bush administration. Gilead also began to take off, relying on a series of drugs to treat hepatitis C and becoming the 'Apple Company' of the pharmaceutical industry.
Ordinary people can probably only see four words through these connections: benefit transfer.
It’s just that the average person obviously has no way of knowing exactly how to litigate.
Simon knew it.
The most important step forward for Gilead was not the acquisition of a pharmaceutical company that developed a drug that can treat hepatitis C, but the fact that this product successfully broke through the U.S. medical insurance system at a high price!
If anyone knows about Gilead's series of hepatitis C drugs, they will find that a course of related drugs costs nearly US$80,000, and some of the drugs cost US$1,000 a piece. Such high prices cannot be afforded by ordinary Americans.
Under normal circumstances, if Gilead maintains such a high price, it will only become a niche drug, and its treatment targets are limited to the wealthy.
In this way, it is impossible to obtain too high revenue.
However, what is very unexpected is that while maintaining the high pricing of its series of hepatitis C drugs, Gilead has also miraculously successfully entered the US medical insurance system.
Now, the astronomical price of US$80,000 for a 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 need to spend much money. The US government and insurance companies foot the bill.
On the surface, Americans think that they will not suffer losses. However, where does the money from the U.S. government and insurance companies come from
It never falls from the sky.
This seems to be very beneficial to patients, but it is actually the root of the extremely high medical costs in the United States.
As for the interests involved, it is clear at a glance.
Now that the layout has been decided, Simon will certainly not let this company go, and plans to advance a former defense secretary who is only a member of the board of directors to the position of chairman.
In addition to Gilead, Simon has not forgotten China.
The layout there mainly focuses on two aspects, traditional Chinese medicine and health care products.
Simon plans to establish some start-up companies in China that specialize in studying the feasibility of mass production of traditional Chinese medicine. The accumulation of traditional Chinese medicine over thousands of years is actually a potential gold mine.
In addition, the most important thing is actually investment in the field of health care products.
It just so happens that there is a very good opportunity here.
A guy building a building in Zhuhai is about to go bankrupt because of a broken capital chain. This happens to be a very suitable target for support.