Zheng Li waited on the stage for everyone in the audience to quiet down.

The investors who can stand here are the elite of the elite. They can grasp the key point immediately. Endorphins combined with another drug can cure addiction and drug dependence, even if the treatment is targeted.

Only effective against opioids.

But it is also a monopolized market.

Lei Jun was also filled with emotions. Investing in Zheng Li was the most profitable investment in his investment career in so many years.

Young Guo felt extremely helpless. He felt like he had missed the world just by missing a step. Maybe if he had persisted a little longer, he could have participated in the A-round venture capital investment of Science and Technology Biotechnology.

The excitement did not last long. Investors looked at others as if they were enemies. There were only so many investment shares. There were more than 30 investment institutions present, but in the end it was estimated that no more than five companies would participate in Series B investment.

Zheng Li said after the scene became quiet again:

"Now I want to talk about the thing that everyone is most concerned about, which is the specific matters of Kechuang Biotechnology's Series B investment."

"First of all, for our Series B investment, I will transfer 20% of the shares to introduce four institutions, and these four institutions will divide the 20% of the shares."

“The funds from Series B investment are mainly used for clinical trials at home and abroad. Endorphin has been approved for official sale. In addition, we need to build an integrated R&D and production production base in Suzhou and plan to build a biomedical laboratory in Southeast Asia.

"

Many pharmaceutical giants will build their own laboratories around the world, such as Pfizer, which has a laboratory in South Africa, and Bayer, which has its own laboratory in the Lion City.

One is because these places provide tax incentives for innovative enterprises, and the other is to use local resources to allocate resources.

"Representatives of investment institutions present can write down your valuation of Kechuang Biotech and the help it can provide for Kechuang Biotech's future development on paper, as well as the name of the investment institution you represent, and then submit it to the service staff."

"The service staff gave me a summary of the documents everyone wrote."

"I will choose the four institutions here to participate in the B-round investment of Science and Technology Biotechnology."

This is a form of blind bidding in the auction. Blind bidding is very disadvantageous for investors because you don’t know what price you need to estimate to participate in Series B investment.

Zheng Li continued: "In the end, Kechuang Biotechnology's Series B investment valuation will be based on the average of the top four valuations of everyone here."

"If anyone from the four companies I selected gives up this opportunity, then it will be postponed later."

After Zheng Li finished speaking, the waiter handed paper and pens to the investors in the audience.

Young Guo was very hesitant. He didn't know what conditions to write to win in this competition. Judging from what Zheng Li asked them to write, valuation was not the most important thing.

Moreover, the valuation of Kechuang Biotech by investment institutions is quite different, even after Zheng Li claimed that endorphins can cure opioid addiction.

Because endorphins want to replace morphine as an analgesic, then its price cannot be much higher than morphine. If endorphins want to be sold at a high price as a drug to treat addiction, then it cannot be used as an analgesic.

Come and sell.

All in all, you cannot take advantage of both positions.

It has not yet been produced and has not completed the entire clinical trial process, so it is difficult to accurately judge the valuation of Kechuang Biotech.

According to the most optimistic calculation, endorphins can completely replace opioids in the analgesic industry. The market share of the global analgesic market in 2018 is about 200 billion yuan.

The market is huge, but the compound annual growth rate is very low, less than 1%.

From this point of view, the value of endorphins is about 200 billion yuan. Based on the fact that endorphins can capture 30% of the market in the early stage after it is launched, which is 60 billion yuan in sales, and then based on the profit margin of 10%

Fifteen, which is an annual net profit of 9 billion yuan.

Calculated based on a PE of 20 times, the approximate valuation is about 200 billion.

In 2019, the general PE of domestic pharmaceutical companies was around 20, which was not as exaggerated as it was later.

200 billion is the previous price. If endorphins can also treat addiction, then this valuation will not be easy to calculate.

Because this is a market that has never existed before. Although intuition and experience determine that there are many drug addicts at home and abroad, the market is very huge and it is still a monopoly market.

But it is unknown to Young how profitable a blue ocean market can be, and whether Zheng Li, as the leader of the company, has the talent and courage to pioneer in business.

Everyone here is having trouble.

...

"In the end, these are the four companies, Goldman Sachs, IDG Capital, BoCom International and Temasek Investment Fund?" Zheng Li asked.

The prices of Goldman Sachs, IDG Capital and Temasek Investment Fund are all around US$50 billion. Only BoCom International's valuation is US$35 billion, which is significantly lower than the valuation of the other three.

It was because of the need for a national capital to allow BOCOM International to enter the market.

Lei Jun nodded and said: "I think there is no problem. These four institutions have very rich experience, and the resources they can provide are also conducive to the development of the enterprise."

Zheng Li asked: "At this price, senior brother, do you want to pursue the investment?"

Zheng Li sold 20% of his shares. If Lei Jun does not make additional investment according to the new valuation, his equity will be diluted accordingly.

Lei Jun said directly: "Of course, if I don't invest in such a good project, why should I invest?"

"What's more important is people. I believe you can develop better products and benefit more patients."

After the shareholders of Kechuang Biotech reached an agreement, Zheng Li arranged for Cheng Gang to handle specific matters.

The valuation of the last two rounds of investment in Kechuang Biotech was US$47.1 billion. After Cheng Gang notified the four institutions of the news, Goldman Sachs, IDG and Temasek all responded on the same day: they were willing to invest.

BOCOM International also decided to participate in the investment after internal communication the next day.

So far, the second round of investment in Kechuang Biotech has been participated by Goldman Sachs, IDG Capital, Temasek and BOCOM International, with Shunwei Capital also participating.

Kechuang Biotech has received an investment of 14.1 billion yuan. After the money and resources are in place, Kechuang Biotech has entered the fast lane of development.

At the end of 2019, the fourth phase clinical trial of endorphin was completed, and the integrated production and R&D base was officially put into operation in Suzhou.

After the integrated base was put into production, Zheng Li began to reproduce the artificial magic brain. Without the help of magic, it was very difficult to cultivate a magic brain suitable for humans. Whether it was gene editing or later cultivation, many difficulties needed to be overcome.

Zheng Li entered the in-depth research state. Before entering the in-depth research state, he appointed Li Miaomiao as the deputy general manager of Kechuang Biotechnology, in charge of finance.

In February 2020, the Drug Evaluation Center of the State Food and Drug Administration accepted the marketing application of Kechuang Bio-Endorphins and approved its marketing application.
Chapter completed!