Chapter 123: Chapter 123 Investment Opportunities in Pharmaceutical Companies
The second, third, and fourth days of the Lunar New Year were spent making New Year’s visits.
On the fifth day, a high school classmate came to visit.
“Xu Yang, you’ve really made it big now, owning a live streaming company, as well as Fengcai Guild, and even investing in movies. I’m truly envious,” the classmate said.
The classmate’s name was Gao Zimo, and they had a relatively good relationship.
It was only slightly less close than his relationship with Han Yanghui.
Gao Zimo had learned about Xu Yang’s situation from Han Yanghui.
His visit today also had a purpose; he had something he needed to discuss with Xu Yang.
“It’s been alright,” Xu Yang modestly smiled. In front of his classmates, he naturally couldn’t show off.
In fact, one should never show off in front of anyone.
Humility and keeping a low profile were essential, otherwise it would only attract resentment.
“What are you working on these days? Did you end up in a hospital?” Xu Yang inquired, knowing that Gao Zimo had made it into a local medical university, but not where he was working.
“No, I’m working at a pharmaceutical company,” Gao Zimo replied.
“A pharmaceutical company?” Xu Yang was slightly surprised, “Couldn’t you work in a hospital? Hospitals are more stable, aren’t they?”
“It’s hard to get into big hospitals, and I didn’t want to settle for a hospital in the county, so I went to Guangcheng and joined Hui’an Pharmaceuticals as a researcher,” Gao Zimo explained.
“Hui’an Pharmaceuticals? That’s a listed company, not bad,” Xu Yang was aware of Hui’an Pharmaceuticals, having looked at quite a few stocks recently and knowing it was a rising star in the pharmaceutical industry.
However, over the past year, Hui’an Pharmaceuticals’ stock had been on the decline.
“It’s okay, but the company is currently facing some difficulties in its operations. I came to you to see if you’d be interested in investing in Hui’an Pharmaceuticals,” Gao Zimo said.
“Invest in Hui’an Pharmaceuticals? I don’t know much about it,” Xu Yang admitted with a wry smile.
He hadn’t expected Gao Zimo to, like Han Yanghui, try to draw him into making an investment.
Yet his knowledge of Hui’an Pharmaceuticals was indeed very limited, just a superficial understanding.
Investing as a shareholder was different from buying stocks on the stock market.
Buying stocks on the stock market sometimes only required a quick look at the K-line chart to make a purchase.
But investing as a shareholder in a company required a thorough understanding of that company.
One would need to comprehensively evaluate the company’s scale, finances, operational status, core competitiveness, and future prospects.
In this respect, Xu Yang really wasn’t capable.
His investments in acquiring Fengcai Guild and Yu Huo Ren Jia, which he then renamed to Fengcai Guild, were entirely guided by the system.
Without the system, he wouldn’t have invested at all.
Investing in “War Panther” was the same. If the system hadn’t indicated that “War Panther” had good box office returns and that “War Panther 2” would do even better, he would never have invested.
“Then let me tell you about it. You can decide whether to invest or not. How does that sound?” Gao Zimo also wanted to do his part for the company. Firstly, he worked at Hui’an Pharmaceuticals, where the salary was good, and he did not want the company to go under.
Secondly, if he could bring in investment through his connections, the company’s boss would reward him.
As for whether Xu Yang invested or not, he felt that it was enough to have made the effort.
If Xu Yang declined, it was no issue—they could simply catch up as old classmates.
But if Xu Yang decided to invest, the boss’s reward could save him decades of hard work, something that might not even be achievable in regular circumstances.
“Alright, tell me about it, and I’ll see if I can make an investment,” Xu Yang said.
“Our company is currently developing a drug to treat stomach cancer. Most of our capital has been invested in the research and development of this drug.”
“The research for the medication has entered the final stage. If the development is successful, you can imagine the potential,” Gao Zimo shared.
“Of course, such things can’t be guaranteed, and if the development fails, the company might very well go under.”
“It’s precisely because of this uncertainty and the unknown timeframe for development that the previous investors aren’t willing to continue funding it.”
“Since it would require a substantial amount of additional funding with an uncertain period, those investors decided they would rather cut their losses than continue investing.”
“The boss was out of options and told the company executives and us researchers to see if anyone could bring in investment. If anyone could secure funding, the company would definitely reward them with a promotion to a critical position, and he even mentioned a one percent stake in the company.”
“It was a huge temptation, but I originally didn’t think much of it because I don’t know any wealthy people.”
“Before the New Year, I got in touch with Han Yanghui, and he told me about your situation, so I wanted to ask if you were interested.”
Gao Zimo briefly explained the situation.
“A drug for treating stomach cancer? If such a drug were to be successfully developed, it could indeed make a fortune. Since you’re a researcher at your company, do you think it can be developed successfully?” Xu Yang asked.
“I can only say that there is an eighty percent chance of success,” Gao Zimo replied.
“That high?” Xu Yang expressed his surprise.
An eighty percent success rate was indeed very high.
Especially since this was a drug for treating cancer.
“Yes, but it’s that uncertain twenty percent that depends on whether or not there’s a wealthy person willing to take a gamble. If I had money, I would invest, but unfortunately, I don’t,” Gao Zimo said with a wry smile.
Xu Yang couldn’t make a judgment.
And he didn’t know if what Gao Zimo was saying was true.
Such things could only be confirmed by going to Hui’an Pharmaceuticals and conducting an in-depth investigation to discern the truth of Gao Zimo’s claims.
Just as he was about to politely decline with the excuse of “I’ll think about it,” a system alert sounded in his mind.
[Ding! Hui’an Pharmaceuticals is in the process of developing a breakthrough stomach cancer drug, which will be successfully developed in a month. With this drug, Hui’an Pharmaceuticals will grow into a pharmaceutical giant with a market value of over a hundred billion in the next five years!]
Xu Yang’s eyes lit up.
A market value of a hundred billion in the next five years.
This was like fishing for a windfall from the depths of a river.
And even more promising than that.
He must invest!
Xu Yang’s gaze flickered, “Based on what you’re saying, your company indeed seems worth investing in. How much are you looking to raise?”
Gao Zimo’s eyes brightened, and he quickly replied, “Our boss said that five hundred million should be about right.”
This also showed the confidence of Hui’an Pharmaceuticals’ owner.
Xu Yang asked, “For five hundred million in funding, how much share is he willing to offer?”
Gao Zimo answered, “Our company’s market value is twenty-six billion; five hundred million in funds would get you twenty percent shares.”
Xu Yang pondered for a moment and then said, “I’m interested in investing, but I still need to visit your company first to see for myself whether it’s as you described, and to also check out other aspects of the company.”
Gao Zimo nodded repeatedly, “Of course, five hundred million isn’t a small sum, so a comprehensive examination is naturally required. It would be the same for anyone.”
Xu Yang said, “Alright, after the Spring Festival holiday, when I return to Jiangcheng, I’ll distribute the new year bonuses to my employees and arrange some work, then I’ll get in touch with you, and we’ll arrange a time to visit your company.”
“Good, I’ll wait for your call,” Gao Zimo said cheerfully.
If Xu Yang indeed invested, he would receive a one percent stake.
It was a reward that didn’t cost him anything.
If the company really could develop the cancer drug, just with that one percent stake, he could become a multimillionaire.
After chatting a bit more, Gao Zimo took his leave and departed.