Chapter 623: Pricing of Imatinib Mesylate

Chairman, General Manager He wants you to go to the meeting room.

What's the matter?

Regarding the pricing of our company's leukemia drug Imatinib Mesylate, the board has differing opinions. General Manager He hopes you can go and oversee the situation.

Too high? Or too low?

Too low!

What's the reason?

Other companies sell it for 24,000, but we only sell it for 5,000; the board worries we'll offend peers.

Chen Yang frowned slightly. The company just started a chain pharmacy; if we offend peers and they cut off supply, that would be a big trouble.

But if the drug price is set too high, many people will risk going to India to buy counterfeit medicine. The money spent buying the patent will only see its payoff period increase endlessly.

However, Chen Yang suddenly realized something was off. He asked Zhang Lan, 'How many domestic pharmaceutical companies produce Imatinib Mesylate?'

Zhang Lan replied: 'Besides Novartis, only our company produces Imatinib Mesylate.'

Upon hearing that, Chen Yang said impatiently: 'Since we have the exclusive rights, whose peers are we offending? Tell General Manager He to first advertise our Imatinib Mesylate price on the official website and see the market response. If people think the price is high, we'll have to lower it further.'

Zhang Lan said worriedly: 'Chairman, if we lower it further, our payback period will only get longer.'

'First go do market research, we'll talk after we have results.' Chen Yang shook his head helplessly. It seems not just Zhang Lan; most board members are worried the company won't recoup the cost of purchasing the patent for Imatinib Mesylate.

Upon hearing that, Zhang Lan immediately went to the company meeting room to convey Chen Yang's instructions.

Half an hour later, Zhang Lan accompanied He Wanqiu over.

'Chairman, the pricing of Imatinib Mesylate has been approved. However, everyone still holds reservations about whether the company can break even before the patent expires.' He Wanqiu reported to Chen Yang with a heavy heart.

Chen Yang smiled and soothed: 'General Manager He, don't just look at this account. Our company holds the exclusive domestic production and sales rights to Imatinib Mesylate; in the coming years we will be the authority in leukemia treatment.'

'As long as we gain everyone's recognition, the company's stock price will rise steadily. Only when the stock price goes up will the company have more money to develop new drugs.'

He Wanqiu said with some worry: 'Chairman, our company's stock price has already multiplied several times. If it jumps again, won't we attract regulatory scrutiny?'

Chen Yang said calmly: 'What's there to fear? We haven't artificially manipulated the stock price. This is purely a market sentiment effect. Instead of worrying about this, we should spend more thought on developing new drugs. We can't rely on just Imatinib Mesylate for a lifetime!'

Upon hearing that, He Wanqiu deeply felt her responsibility was great and immediately said: 'Chairman, my colleagues in Beautiful Country are coming over soon. With their help, the company will surely achieve a breakthrough in new drugs.'

Chen Yang nodded in satisfaction. After He Wanqiu left, he deliberately opened the computer to check the company's official website. He found many people leaving comments under the drug pricing information for Imatinib Mesylate posted by Corporate Secretary Zhang. Besides a few who said they still couldn't afford it, most thought it was quite reasonable.

After all, compared to Novartis's selling price of 24,000, Heavenly Opening Pharmaceutical's price of 5,000 is downright conscientious.

Moreover, ST Heavenly Opening's stock quickly hit the limit up after the news was released.

Chen Yang checked ST Heavenly Opening's stock price trend; since purchasing the patent for Imatinib Mesylate, only five trading days have shown a pullback.

If this trend continues, the company can push the stock price above twenty without even needing to remove the star designation.

Two days later, Chen Yang was signing documents in the office when Zhang Lan suddenly ran in to report.

'Chairman, Miss Chu of the Commoners' Charity Foundation wants to see you!'

Upon hearing that name, Chen Yang gritted his teeth and said directly: 'No!'

'Yo, Chairman Chen, you're putting on such airs!' Chu Ning strode into Chen Yang's office, wearing a smug expression, and said: 'Even the governor didn't refuse me—does your face surpass the governor's?'

Chen Yang had Zhang Lan wait outside, then put on a stern face and said to Chu Ning: 'What do you want? Aren't you afraid I'll take revenge?'

'What's there to fear.' Chu Ning said dismissively: 'I'm here on the governor's orders. If something happens here, what do you think the consequences would be?'

Chen Yang didn't expect it was Liu Jianghua who sent her to find him, and he asked directly: 'What's the matter?'

Chu Ning said: 'Your company's leukemia drug Imatinib Mesylate is priced too high; the poor can't afford it at all! Can't you make it cheaper?'

Chen Yang said impatiently: 'Others sell it for 24,000, I only sell it for 5,000, and you still say it's expensive? This is an anticancer drug for leukemia, not a common cold medicine!'

Chu Ning said: 'I know you've already lowered the drug price a lot. But I've heard your production cost is actually low; even selling a box for a few hundred would still be profitable.'

Chen Yang gave her a glance and said: 'The company spent 1,655,000,000 to buy the patent technology, yet we only sell it for 500 per box—when will we ever break even? Don't forget, you're also a shareholder now.'

Chu Ning said earnestly: 'If you sell more, isn't the profit already in there?'

Chen Yang laughed helplessly: 'Miss Chu, at most there are only 200,000 to 300,000 leukemia patients in China, and our company only has domestic production and sales rights. Tell them how to buy more.'

Chu Ning lowered her head to do a quick mental calculation, then said: '300,000 people, each buying one box, that's 150,000,000. According to the information I've gathered, each patient consumes one box of Imatinib Mesylate per month. That means you could sell 1,800,000,000 per year—how could you not break even?'

Chen Yang countered: 'Does the company not pay taxes? Not pay employee salaries? Not need money for drug raw materials?'

Chu Ning calculated again and then said: 'Even at a 50% discount, you'd break even in two years.'

Seeing she wouldn't give up, Chen Yang said impatiently: 'If I sell it at 500 per box, affecting Novartis's overseas sales, aren't you afraid they'd sue our company?'

Chu Ning said, puzzled: 'Didn't you buy out their technology and sales rights? Why would you still need to look at their face to set the price?'

Chen Yang sighed and said: 'Miss, are you trying to get me into a lose‑lose business? This time we've screwed them over; there'll be no chance of cooperation later. Even foreign peers might collectively boycott us. Can you bear that consequence?'

'Alright, alright, as if I never said it!' Seeing Chen Yang absolutely refuse to lower the price, Chu Ning turned and left.