The success rate of innovative drug R&D is very low, but the cost is huge. The average R&D cost of a new drug is between US$1 billion and US$2 billion. This cost includes the average cost of failed R&D pipelines.
Drug development costs have risen dramatically over time. A systematic study in 2011 showed that the cost of new drug development rose from $92 million in the 1960s to $884 million in the early 2000s.
Among them, the number of new drugs developed by domestic pharmaceutical companies is relatively small. Hisun's Haize Mibu tablets cost 225 million yuan, Hengrui's pyrotinib cost 520 million yuan, PD-1 (reported production) 155 million yuan, and alisartan medoxomil was less than 225 million yuan. 300 million yuan, and the cumulative research and development costs of icotinib are around 150 million yuan. Moreover, the above-mentioned cost is only the cumulative investment cost of the project, and does not include the investment of other project R&D failures and the time cost of funds.
Although endorphin is not a new drug, it has a wider range of use and higher expected benefits in the future.
50 million rmb10% of the shares, the price is not low, but definitely not high.
Zheng Li continued: "Boss Lei, 50 million and 10% of the shares is my bottom line."
"The reason why I asked you for venture capital is because you, as a senior of Jiangcheng University, we have basic trust."
"I would like to The concession made is that before the endorphin clinical test results come out in the early stage, the company's finances can be assigned by you." The
finances are assigned by Lei Jun, which means that the company's cash cannot be used by Zheng Li at will, which is also a strong angel investment A condition that people generally raise.
Lei Jun took advantage of the situation and agreed: "Okay." The
two parties reached an agreement that Lei Jun contributed 50 million RMB to account for 10% of the company's shares, and Zheng Li invested 90% of the company's shares with technology.
Lei Jun: "The next words are not as investors, but as the seniors of entrepreneurship, the seniors of Jiangcheng University told you."
"Entrepreneurship is a very difficult thing, but it can also bring you the most extreme feedback. When you succeed in starting a business, the emotional feedback you get is unimaginable for ordinary office workers."
"How old are you?"
Zheng Li : "Eighteen years old."
Lei Jun said with emotion: "It's good to be young. When I see you, I think of my days in Jiangcheng University many years ago."
"I may not be as talented as you, but I can be considered a little talented "
When I graduated from university, I first worked for others and then started my own business. Later, when I founded Dami, I went everywhere to find investors. When people heard that you were going to make a smartphone, they asked you what to compete with Apple?"
"Almost all investors are not optimistic about rice. First of all, you can't compete with Apple. Where does the profit come from based on cost performance?"
"What I told investors at the time was that I would copy the success of Jobs. If there is no soil for innovation in the country, you cannot become Jobs."
"I have formed a team of more than 200 people, and more than half of the team members are from Motorola, Microsoft, Kingsoft and Google."
"I had four calls with Mr. Liu of Morningside Capital. Only after hours of phone calls did I get the investment."
"In the end, I got 41 million US dollars in financing and successfully listed rice on the Hong Kong stock market."
"What I want to tell you is that starting a business is very difficult. There are a lot of things that need to be overcome little by little."
19 was a very difficult year for Lei Jun. After the listing of Rice in Hong Kong in 2018, the stock price fell continuously, and by the middle of 2019, the stock price was almost cut in half.
What's more terrible is that Xiaomi signed a gambling agreement with early investors before listing. If the market value cannot exceed 75 billion US dollars before December 13, 2019, Xiaomi needs to add 8% accrued interest plus 8% to the issue price. Dividends have been declared but not paid.
At this time, the market value of rice was only 30 billion US dollars, which was 40% lower than the issue price at the time of listing.
Lei Jun is under enormous pressure at this time. High-end brands cannot break through. The high-end is occupied by Apple and Huawei.
Zheng Li nodded: "It's really not easy to start a business. There are too many variables that you can't control, and each variable may cause you to fail.
" Failure."
Lei Jun nodded and said: "Your understanding is still very deep. It is becoming more and more difficult for Huaguo to start a business."
"It is because you have technology. Technology is your moat. Others cannot easily break through. I don't care about medicine." I understand it too well."
"I still have the right to speak on the Internet, and I have been in this industry for too many years."
"The Internet is now more like a stock competition. The amount of services has been divided up."
"Now more people are sinking to the bottom, dismantling the previous organizational relationship to start a business, no matter Didi or Pinduoduo."
"Every track is crowded. Player."
Lei Jun recalled: "I invested in a company called Fancl before, and you may not have heard of it at the age of eighteen."
"What does Fancl do? Go to e-commerce."
"Fancl is a typical venture capital company, and completed four rounds of venture capital investment in just three years, investing in well-known institutions, such as IDG Capital, Softbank, Lianchuang, Tiger Asia Fund, etc. "
"In 2010, Fancl sold 30 million T-shirts, which shocked the clothing industry in Huaguo, because this sales volume exceeded five times the annual sales of the largest clothing brand at that time."
"Now in 2019, Fancl Where are the customers? Dead! Why? I can't figure out what I want to do. A company that started selling T-shirts and shirts has accumulated more than 190,000 categories of products in the back warehouse."
"I'm dragged down by inventory. Internet companies can be light or heavy, but they can't accept high inventory."
"I say this to tell you that I will invest in your company. Your early planning is very good, and endorphins are valuable. New drugs have a broad market prospect."
"Your company can live well just by relying on endorphins, and it is not uncommon for a drug to support a company."
"Endorphins are a steady stream of cash Cow."
"But you are too young, and being young means that you have a lot of things you want to do in your heart, and you have unlimited ideas."
"And you are a genius, and you have many ideas you want to realize, whether it is developing new drugs or Open up a business on another path."
"I want to say don't do too many things at the same time, but do limited things well."
"To develop new drugs, don't launch everything you want to do at once, but do it first. The plan for the research and development of the two new drugs should be done step by step."
"The most taboo of being an enterprise is that the main business is not clear, and there is no mature thinking plan."
Zheng Li nodded frequently, and put forward his own request: "I will remember what you said, In addition, I need your help."
"You also know that I am very young and have no connections. The early entrepreneurial team may need your help to set up, including the chief financial officer, vice president, human resources and legal affairs."
"Legal needs A lawyer who understands international patent law."