As a mage, I just want to pursue the truth

Chapter 16 Lei Jun's Advice

The success rate of innovative drug research and development is very low, and the cost investment is huge. The average research and development cost of a new drug is between 10 billion and 20 billion US dollars.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 $60 million in the 9200s to $8.84 million in the early [-]s.

Among them, the number of new drugs developed by domestic pharmaceutical companies is relatively small. Hisun’s Haize Mibu tablets cost 2.25 million yuan, Hengrui’s pyrotinib cost 5.2 million yuan, PD-1 (reported production) 1.55 million yuan, and alisartan medoxomil was less than 3 million yuan. 1.5 million yuan, and the cumulative research and development costs of icotinib are around [-] 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.

5000 million rmb10% of the shares, the price is not low, but definitely not high.

Zheng Li continued: "Boss Lei, 5000 million ten percent of the shares is my bottom line."

"The reason why we asked you for venture capital is because you, as a senior of Jiangcheng University, we have basic trust."

"The concession I'm willing to make is that before the results of the endorphin clinical test come out, the company's finances can be assigned by you."

The finance is assigned by Lei Jun, which means that the company's cash cannot be used by Zheng Li at will, which is also a condition that strong angel investors generally raise.

Lei Jun took advantage of the situation and agreed: "Okay."

The two parties reached an agreement that Lei Jun will invest 5000 million RMB to account for 90.00% of the company's shares, and Zheng Li will invest [-]% 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 beyond the imagination of ordinary office workers."

"How old are you?"

Zheng Li: "."

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 if you rely entirely on cost performance?"

"What I told investors at the time was that I would copy Jobs' success. The problem is that others don't believe it. They think that Huaguo has no soil for innovation, and you can't become Jobs."

"I formed a team of more than 200 people, and more than half of the team members are from Motorola, Microsoft, Kingsoft and Google."

"It took me four hours to get the investment from Mr. Liu of Morningside Capital."

"In the end, I obtained a financing of 4100 million US dollars, and successfully listed rice on the Hong Kong stock market."

"What I want to tell you is that starting a business is a very difficult thing, and there will be many things that need to be overcome little by little."

19 was a very difficult year for Lei Jun. After Rice was listed on the Hong Kong stock market in 18, the stock price continued to fall. By the middle of 19, the stock price had almost halved.

更要命的是大米在上市前跟前期的投资人签订了对赌协议，如果在19年12月13号之前市值不能突破750亿美元的话，小米需要按照发行价加上8%的应计利息加上已宣派但未支付股息。

At this time, the market value of rice was only 300 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. Every variable may cause you to fail."

"No matter whether many entrepreneurs fail or succeed in the end, he doesn't know why he succeeds or fails."

Lei Jun nodded and said: "Your understanding is still very deep. It is becoming more and more difficult for Huaguo to start a business."

"You have technology. Technology is your moat. Others cannot easily break through. I don't know much about medicine."

"I still have the right to speak on the Internet. I have been in this industry for too many years."

"The Internet is now more like stock competition. The Internet has almost been divided up through the high-frequency flow of information for the society to empower enterprises and individuals. Incremental services."

"Now it's more about sinking to the bottom and dismantling the previous organizational relationship to start a business, no matter Didi or Pinduoduo."

"Every track is packed with players."

Lei Jun recalled: "I invested in a company called Fancl before, so you may not have heard of it."

"What does Fancl do? Founded in 2007, Fancl specializes in selling clothing online."

"Fancl is a typical venture capital company. It has completed four rounds of venture capital investment in just three years. Its investments are all well-known institutions, such as IDG Capital, Softbank, Lianchuang, Tiger Asia Fund, etc."

"In 2010, Fancl sold 3000 million T-shirts, which shocked the clothing industry in Huaguo, because this sales volume exceeded five times the annual sales volume of the largest clothing brand at that time."

"Where is Fancl now in 2019? 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 19 categories of products in the back warehouse."

"I was dragged to death by inventory. Internet companies can be light or heavy, but they cannot accept high inventory."

"I say this to tell you that I will invest in your company. Your early planning is very good. Endorphin is a valuable new drug with broad market prospects."

"Your company can live well on endorphins alone. It is not uncommon for a drug to support a company."

"Endorphins are the cash cow that keeps coming."

"But you are too young. Being young means that there are many things in your heart that you want to do, and you have unlimited ideas."

"Besides, you are a genius, and you have many ideas that you want to realize, whether it is to develop new drugs or start a career on other paths."

"I would say don't do too many things at once, but do a limited number of things well."

"If an enterprise wants to develop new drugs, don't put everything they want to do online at once, but make one or two new drug development plans first, step by step."

"The most taboo of being an enterprise is that the main business is not clear, and there is no mature thinking and planning."

Zheng Li nodded frequently and put forward his own request: "I will remember what you said, and I still need your help."

"You also know that I am very young and have no connections. You may need your help to build the early entrepreneurial team, including the chief financial officer, vice president, human resources and legal affairs."

"Legal affairs need lawyers who understand international patent law."

(End of this chapter)