Zheng Li waited on stage for the audience to quiet down.
The investors who can stand here are the elite among the elite, they can grasp the key point at once, endorphin combined with another drug can cure addiction and drug dependence, even if this treatment is targeted, Only effective against opioids.
But it is also a monopoly market.
Lei Jun was also full of emotions, investing in Zheng Li was the most profitable investment in his investment career over the years.
Young Guo felt helpless in his heart. He just missed a step and felt like he missed the world. Maybe he insisted at that time and could participate in the A-round venture capital of Kechuangbio.
The boiling lasted for a short time. 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 it is estimated that no more than five companies could participate in the B round of investment in the end.
After the scene became quiet again, Zheng Li said:
"Now I want to talk about the thing that everyone is most concerned about, which is the specific matters of the B-round investment of Kechuang Biology."
"First of all, I will sell 20% of our B-round investment ." These four institutions will share the 20% of the shares."
"The funds of the B-round investment are mainly used for clinical trials at home and abroad, and Endorphin has been approved for listing and officially sold. In addition, we We need to build a production base integrating R&D and production in Gusu, and plan to build a biomedical laboratory in Southeast Asia."
Many pharmaceutical giants will build their own laboratories around the world, such as Pfizer has a laboratory in South Africa, and Bayer has a laboratory in Lion City. own laboratory.
One is because these places have tax incentives for innovative enterprises, and the other is to use local resources to allocate resources.
"Representatives of the investment institutions present can write down your valuation of Kechuangbiology and the help they can provide for the future development of Kechuangbio, as well as the name of the investment institution you represent, and then submit it to the service staff."
"The service staff will summarize the documents written by everyone and hand them over to me."
"I will select the four institutions present to participate in the B-round investment of Kechuang Bio."
This is the form of blind auction in the auction. It is very disadvantageous for investors, because you don't know what price you have to estimate to participate in the B round of investment.
Zheng Li continued: "In the end, the valuation of the B-round investment of Kechuang Biotech will be the average of the valuations of the top four of you here."
"If any of the four companies I chose give 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 hesitant, he didn't know what conditions to write in order to win this competition. Judging from what Zheng Li asked them to write, valuation is not the most important thing.
Moreover, the valuation of Kechuang Bio by investment institutions is not bad, even if Zheng Li claims that endorphins can cure the addiction of opioids.
Because endorphin wants to replace morphine as an analgesic, its price cannot be much higher than morphine. If endorphin wants to be sold at a high price as a drug for treating addiction, then it cannot be used as an analgesic to sell.
All in all, the benefits of both positioning cannot be taken by you.
It has not yet been produced and the entire clinical trial process has not been completed, so it is difficult to accurately judge the valuation of Kechuang Bio.
According to the most optimistic calculation, endorphins can completely replace the position of opioids in the analgesic industry. The global market share of analgesics 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 endorphin is about 200 billion yuan. According to the market share of 30% of the market in the early stage after the launch of endorphin, that is, the sales of 60 billion yuan, and the profit rate of 100% Fifteen, that is, an annual net profit of 9 billion yuan.
Based on a PE of 20 times, the estimated valuation is around 200 billion.
In 2019, the general PE of domestic pharmaceutical companies is around 20, which is not as exaggerated as it was later.
200 billion is the previous price. If endorphins also have the effect of treating addiction, then this valuation is not easy to calculate.
Because this is a market that has never existed before, although intuition and experience judge that there are many addicts at home and abroad, the market is very huge, and it is still a monopoly market.
But how profitable a blue ocean market can be, and whether Zheng Li, as the helm of the company, has the talent and courage to pioneer in business, is unknown to Young.
Everyone here is in trouble.
"In the end, just these four, Goldman Sachs, IDG Capital, Bank of Communications 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 has a valuation of US$35 billion, which is obviously lower than the valuation of the three.
BOCOM International was allowed to enter the market in consideration of the need for a national capital.
Lei Jun nodded and said: "I don't think there is a problem. These four institutions have very rich experience, and the resources they can provide are also conducive to the development of the company."
Zheng Li asked: "At this price, do you want to pursue investment, brother?" ?"
Zheng Li sells 20% of the shares, if Lei Jun does not make additional investment according to the new valuation, then his equity will be diluted accordingly. Lei Jun said directly: "Of course, I don't invest in such a
good project. Why should I invest?"
"The more important thing is people. I believe you can develop better products and benefit more patients."
After an agreement was reached, Zheng Li arranged for Cheng Gang to deal with specific matters.
The valuation of the last two rounds of investment in Kechuangbio was US$47.1 billion. After Cheng Gang notified the news to the four institutions, Goldman Sachs, IDG and Temasek all replied on the same day: willing to invest.
BOCOM International also decided to participate in the investment after internal communication on the second day.
So far, Goldman Sachs, IDG Capital, Temasek and Bank of Communications International have participated in the second round of investment in Kechuangbio, and Shunwei Capital has followed suit.
Kechuangbio has received an investment of 14.1 billion yuan. After the money and resources are in place, Kechuangbio has entered the fast lane of development.
At the end of 2019, the Phase IV clinical trial of endorphin was completed, and the integrated production and R&D base was officially put into production in Gusu.
After the integrated base was put into production, Zheng Li started to reproduce the artificial magic brain. Without the help of magic, it is very difficult to cultivate a magic brain suitable for human beings. Whether it is gene editing or post-cultivation, many difficulties need to be overcome.
Zheng Li entered the state of in-depth research. Before entering the state of in-depth research, he appointed Li Miaomiao as the deputy general manager of Kechuang Biology, in charge of finance.
In February 2020, the Drug Evaluation Center of the State Food and Drug Administration accepted the marketing application of Kechuang Biological Endorphin and passed its marketing application.
After the endorphin was approved, Kechuang Bio announced an unconditional support of 100 million yuan worth of endorphin to Jiangcheng to fight the epidemic.