14: Acquisition of pharmaceutical companies

Monday. A new week began, and in the early hours of the morning, the Death Warriors refreshed. Qin Yang gained another Third-level Death Soldier under his command.

Third-level Death Soldier: Ma Jun

Skill: Master Pharmacist (Master Level). Increases the success rate of drug research by 50%.

Qin Yang was now certain that the system truly treated him like its own son. He had just obtained the mechanical blueprints and medicinal formulas from the mall, and now, two experts in those respective fields had been sent to him. There was no such thing as a coincidence.

Previously, Qin Yang had been a bit hesitant about whether to develop the Genetic Defect Reagent right away, as the resistance would be quite significant. But seeing that the system had sent the talent over, he followed his heart. Fortune favors the bold, while the timid starve. If he acted timidly, wouldn't the system be for nothing? One word: do it!

So, Qin Yang spent the night researching which pharmaceutical factories in H City were on the verge of bankruptcy, intending to acquire one directly. This would make it easier to apply for documents like drug licenses.

In the current economic downturn, countless businesses in every industry were on the brink of collapse, and pharmaceutical factories were no exception. Qin Yang searched online and found several. He immediately passed on those that were too large or too small. He didn't have enough capital to take over the large ones, and he feared the small ones wouldn't be able to keep up with production capacity later on. Consequently, he set his sights on a medium-sized factory named the H City Third Pharmaceutical Factory. This factory used to be a state-owned enterprise but was later contracted to an individual and became a private enterprise. However, pharmaceutical R&D was a bottomless pit, and the factory lacked the necessary funds. From beginning to end, it had survived by producing a few old medicinal formulas. But drug iterations in the market were so rapid that the factory's formulas were gradually phased out. With no sales and no profits for the owner, the factory was destined to be eliminated by the market. It was now listed for sale, and the details would need to be discussed in a meeting with the owner.

Thus, early in the morning, Qin Yang contacted Teng Tao, the commercial lawyer who had assisted with the acquisition of the Security Company last time, to head to the Third Pharmaceutical Factory together.

Upon hearing there was business, Teng Tao arrived quickly. After meeting Qin Yang at Hongbin Tower, they drove straight to the Third Pharmaceutical Factory.

Now that Qin Yang had Death Warriors with driving skills under him, he had gradually stepped away from being the driver and sat in the Prado with Teng Tao.

"President Qin's business is growing bigger and bigger. You just acquired a Security Company a couple of days ago, and now you're buying a pharmaceutical factory. You're truly enjoying a streak of financial luck!" Inside the car, Teng Tao looked at Qin Yang with curiosity and then praised him.

"Not at all, I'm just trying to earn a living," Qin Yang waved his hand and replied modestly.

"President Qin, we've worked together once before. I'm not sure if I should say this or not?" Teng Tao continued.

"Lawyer Teng, if you have something to say, just say it. There's no need to be so polite."

"Very well, I'll be blunt. I wonder if President Qin will inject capital after acquiring the factory? As far as I know, the Third Pharmaceutical Factory has been in the red for several years. The current owner even owes a significant amount in back pay to the workers. Our law firm has experience helping the factory's workers sue for their wages. The owner was forced into a corner and had no choice but to sell. However, even if it's sold, the drugs the factory currently produces have no competitiveness in the market. Therefore, if President Qin wants to acquire it, you must be prepared to develop new drugs or obtain authorization from other pharmaceutical companies to become a contract manufacturer to survive. But developing new drugs is no easy task; even massive amounts of capital don't guarantee success. I'm saying this primarily because I want you to consider it seriously, President Qin. The pharmaceutical industry is not something you should jump into on an impulse," Teng Tao said.

Qin Yang hadn't expected Teng Tao to say all this, showing such concern for his client that he even disregarded his own commission. This Lawyer Teng was quite interesting.

Qin Yang then smiled and said, "Lawyer Teng, thank you for the reminder. However, I have given this move careful consideration. My family has an ancient heirloom formula that has excellent therapeutic effects on certain diseases. To prevent this hidden gem from being lost, I want to bring it out and give it a try. Medicine is meant to save people; keeping it to myself is not as good as bringing it out to save more lives. I'll make money and earn merit at the same time—it's a win-win!"

"Of course, if the medicine from the ancient formula doesn't sell well, I'll be quick to dispose of the factory."

"Haha, that's good then. President Qin, I didn't mean anything else; I just feel you're a good person and we have a foundation for cooperation. Since you've planned everything out, I wish you great success and wealth from all directions!" Teng Tao smiled apologetically upon hearing this.

"Then I thank you for your kind words."

While they were chatting, the Prado drove into a desolate factory compound. There was no guard at the gate, and the grounds were very quiet.

Qin Yang picked up his phone and dialed a number. After hanging up, a figure on an electric bike soon moved toward Qin Yang's car from inside the factory area.

Shortly after, the electric bike stopped in front of the Prado. The person on it quickly parked and hopped off, approaching the Prado with a face full of smiles.

Qin Yang opened the car door and stepped out, followed by Teng Tao.

"Hello, you must be President Qin? I am Duan Yulin, the director of the Third Pharmaceutical Factory." Seeing Qin Yang, Duan Yulin hurriedly extended both hands toward him.

Qin Yang shook his hand politely and introduced Teng Tao.

Following that, Duan Yulin eagerly began to introduce the factory's situation to Qin Yang.

The Third Pharmaceutical Factory was quite large, covering a total area of four hectares, with six production workshops, two office buildings, and four warehouses. At its peak, the factory had nearly a thousand workers.

Qin Yang walked around with Duan Yulin, and the conditions were generally consistent with the description. However, the machinery in the workshops was somewhat dated, though still functional. As for the office buildings, all the valuable items were gone. According to Duan Yulin, they had been taken and sold by the workers who were owed back pay.

Perhaps knowing that Qin Yang was coming, Duan Yulin had specially prepared several plastic stools so that the group wouldn't have to stand during the negotiations.

"Director Duan, how many workers are still at the factory?" Once the negotiations began, Teng Tao stepped into his role and took the lead in asking.

"Uh, there are no workers at the factory now. I can't pay their wages, so naturally, they won't work for me," Duan Yulin replied somewhat awkwardly.

"Then, by selling the factory, do you intend to use the money to compensate the workers for their wages?" Teng Tao continued.

"Yes. I was once an employee of the factory myself. Later, when it became possible for individuals to contract the factory, I gritted my teeth and took it over. But my ability was insufficient, and after struggling to support it all these years, the factory finally fell into ruin. I've known those workers for decades; the first thing I'll do when I have money is pay them back. Otherwise, my own conscience won't let me rest. Many old employees even worked for me for quite a while without pay. I've failed them," Duan Yulin replied.

Hearing this, Qin Yang took a serious look at Duan Yulin. This man was a good person; it was just that the times had changed too quickly for him to keep up, and he had been eliminated.

Qin Yang gave Teng Tao a subtle signal.

Teng Tao understood and asked, "Then how much are you planning to sell it for?"

"Five million... or four and a half million would also work. Although the machinery in the factory isn't worth much, the thirty-year land-use rights are worth that price," Duan Yulin said somewhat weakly.

The Third Pharmaceutical Factory was located in the West City Industrial Park. The land ownership belonged to the West City District Government, and the factory only had land-use rights. Duan Yulin said there were still thirty years of usage rights left, so the asking price of four and a half million was actually quite fair.

Thus, Qin Yang asked curiously, "Four and a half million is a fair price, Director Duan. But why hasn't it been sold for so long?"

At this, Duan Yulin's face darkened, and he replied, "Many bosses have come, but they were all trying to take advantage of my misfortune. The highest offer was only three million. With three million, I wouldn't even have enough to pay back the owed wages."

"Oh, I see. Fine, then, at the price you stated—four and a half million—I'll take this factory. But you must guarantee that no workers will come to cause trouble in the future," Qin Yang replied.

Duan Yulin was a good man. Although Qin Yang could certainly have bargained the price down by several hundred thousand, he didn't want to do that. With his current strength, he could afford to be a little willful with a few hundred thousand. Good people should have good rewards.

"President Qin, are you serious?" Hearing this, Duan Yulin's eyes widened. He had been waiting for Qin Yang to haggle, but he hadn't expected Qin Yang to give him such a surprise!

"Yes. This money should be enough for you to pay back the workers' wages with some left over. Live your life well from now on!" Qin Yang patted Duan Yulin's arm and didn't say much else.

Duan Yulin quickly grabbed Qin Yang's hand, thanking him repeatedly. God knows how much he had sacrificed for this factory. He hadn't expected to have such a dignified conclusion today.