Chapter 1403 - 1397: Crisis
Back when Xinhuan Pharmaceutical adopted an international pharmaceutical strategy for their new anticancer drug, although it was much cheaper by actual price comparison, this move made it so that other similar foreign drugs were no more expensive.
Logically, this is not too big of a problem. Xinhuan Pharmaceutical's new drug was not weaker in effectiveness, and thus, its price should be similar, since Xinhuan did not receive significant national subsidies.
But the reality is that domestic people have a blind faith in foreign drugs, naturally believing them to be superior, so maintaining the high pricing would inevitably lose a significant portion of the market!
If a price reduction strategy were adopted, it would significantly impact Xinhuan Pharmaceutical's profits, further affecting investor confidence in Sichuan University Group.
Two days later, United States Knight Pharmaceutical published its new research results, announcing an upcoming launch of an upgraded anticancer drug, claiming improved efficacy over previous versions.
Initially, these news weren't significant, but now Xinhuan Pharmaceutical's stock was being heavily suppressed. Rumors spread quickly in the market indicating this stock plunge was because major investors were already aware of these updates, losing faith in Xinhuan Pharmaceutical's fundamentals. Its most glorious time had passed, and it would soon be defeated by other top international pharmaceutical companies.
This diagnosis sounds very logical. The average person knows they can't compare with European and American firms in terms of R&D, while seasoned investors understand the immense scale of those American pharmaceutical companies.
If Xinhuan Pharmaceutical fails, can Sichuan University Group achieve its expected growth?
Lin Chuan sat in the office, gazing solemnly at the slew of reports on his desk.
During this plan, especially when everything was progressing smoothly initially, he never anticipated facing such a real crisis.
The abrupt release of policies has fundamentally shaken ordinary citizens' and investors' confidence in Xinhuan Group.
Although the impact was severe, given enough time, they could slowly digest it. After all, they could adopt strategies like price cuts and subsequent improvements to cope. The release of this new anticancer drug highlighted Xinhuan Pharmaceutical's independent development capacity. Future launches of better drugs would offer more profits for the company.
However, just two days later, local news from places like Beiling Province began criticizing Xinhuan Pharmaceutical for excessively high prices, quickly rallying other media to cooperate, creating massive momentum in a short period. It caused Xinhuan Pharmaceutical more negative impact.
Under their portrayal, Xinhuan Pharmaceutical became an evil force, harming domestic consumers.
This sort of report wasn't the first, but alongside the sudden national policy, it sparked more speculation. Lin Chuan's worries were soon validated — Xinhuan stock prices plummeted continuously from 29.4 yuan, losing a quarter!
Though stock repurchases temporarily steadied the situation, their limited funds couldn't resist the strong will of so many investors for long.
The office door opened, and Tang Yumeng and Liang Ruoyu entered.
Lin Chuan glanced up, seeing Liang Ruoyu somewhat tired, while Tang Yumeng was spirited and defiant, clearly undeterred despite recent setbacks.
Lin Chuan's heart stirred.
Technically, Liang Ruoyu was still above Tang Yumeng, but in terms of determination and drive, Tang Yumeng had surpassed Liang Ruoyu. Even if it's premature to say Tang Yumeng would surely overtake Liang Ruoyu in the future, when their strengths are equal, this factor could be decisive.
Of course, thinking about that future was too far off; they had urgent issues to deal with now.
"Mr. Lin, although Xinhuan Group's stock price is temporarily stabilized, the opponent is likely gathering strength. We can't be sure if we can withstand another attack," Liang Ruoyu reported the present situation.
"Hmm, I've seen the report on the current situation. It is indeed troublesome." Lin Chuan said with a bitter smile, "As investors, we focus too much on the investment angle of their tactics. But we forgot the opponent's strength lies not in investment brilliance, but their profound networks!"
"Especially this time, with real estate as the target. Even if their purpose is unclear now, suspicions will arise, and upper-level networks will certainly be mobilized to suppress their companies."
"Yes, and I reckon those old foxes have engaged other professionals to specifically handle the financial market fight. Their operations are now worlds apart from their initial approach."
"This is good, at least it forces us to reflect on past mistakes. Never underestimate any adversary; we must concentrate all our energy to confront them."
"Oh?" Liang Ruoyu's eyes brightened, "Mr. Lin, are you planning to draw back some real estate funds? If we can endure their attack, we can stalemate again, where our experience will prevail, better enabling our chance to topple them."
"Impossible, the real estate is also financially tight. We still need to reserve funds for the final strike."
"Then how do we withstand their counterattack now? Our verbal support can't change investor sentiment." Liang Ruoyu said, slightly disappointed.
Tang Yumeng unusually remained quiet, offering no proposals but also didn't second Liang Ruoyu.
"Ha, to hit a snake, you must strike its weak spot. Retrieving funds from real estate might only maintain a stalemate, but the opponent could easily abandon stock market battles and shift fully to real estate defense, bringing us back to square one and making future opportunities scarce."
Lin Chuan didn't disclose more, knowing failure would greatly impact upper-level decisions on real estate reform, triggering unpredictable chain reactions.
"Do we have other means to deal with them? Or is Xinhuan Group launching a new drug to regain investor confidence?" Liang Ruoyu's eyes suddenly lit up.
"As expected from Sister Liang, truly seasoned." He Shaodong laughed heartily, "Actually, a month ago, Mr. Lin handed me a report, and Minqing Yu already did preliminary verification. Their results are a diabetes drug significantly reducing adverse effects."
"Oh?"
Tang Yumeng and both realized diabetes's impact.
This disease can't be cured, only managed to prevent worsening. Once contracted, medication becomes a permanent aspect of life, accompanied by economic burdens and potential adverse effects from prolonged usage.
Though current drugs somewhat stabilize diabetes, they risk triggering other illnesses.
According to Lin Chuan, while Xinhuan's drug won't cure diabetes, reducing adverse effects marks significant progress, attracting patients and their families.
Despite sounding insensitive, diabetes medication demand spans decades. From a long-term perspective, its financial impact on the company outweighs that of anticancer drugs!
"Wow!" Liang Ruoyu and Tang Yumeng simultaneously gasped.
"A month earlier? Wait! Lin Chuan, you didn't prep to use this as your ace when initiating real estate moves, did you? You're getting more cunning."
"Come on! Do you praise your own like this? Mine's obviously smart and strategic, right?" Lin Chuan feigned annoyance: "You guessed partly right. When partnering with Sister Tianya to tackle real estate moguls, I anticipated facing their strongest counterattack, knowing Xinhuan and Sichuan would be their primary targets, for Sichuan itself isn't listed."
"So you reserved some tactics, thinking if they attacked Xinhuan, you'd stabilize the situation?"
