Chapter 754: 50 Million

That afternoon, Robert Swanson arrived at Genentech and found Professor Herb Boyle in the lab, absorbed in his research.

Robert Swanson said sorry in his heart, then smiled and knocked on the door, waking Professor Herb Boyle.

'Robert, you're here?'

Professor Herbert Boyle stopped what he was doing, looked back, removed his mask and smiled.

He then put the test tube in the rack and moved it into the fume hood.

'Professor Herbert Boyle, aren't you taking a nap again?' Robert Swanson asked with concern.

Professor Herbert Boyle smiled and said, 'You know, I'm used to it. For me, sleeping is less important than doing experiments.'

'Well, I have always respected your scientific spirit, and I salute you!'

After saying this, Robert Swanson fell silent, pursing his lips as he thought of how to say what was on his mind.

Professor Herb Boyle was, after all, a man of exceptional intelligence, and immediately noticed Robert Swanson's unusual behaviour. He thought for a moment, and asked, 'Robert, what's wrong? Do you want to tell me something? Do you need to go back to the office to talk about it?'

Robert Swanson nodded slightly, pursed his lips, did not dare to look into Professor Herb Boyle's eyes, and said slowly, 'Let's talk in the office.'

'Okay, just a moment!'

After saying that, Professor Herb Boyle tidied up the experimental equipment, took off his gloves, took off his lab coat and cap, hung them up, and walked towards the office.

After sitting down, Professor Herb Boyle looked Robert Swanson in the eye and asked straight to the point: 'Robert, come on, what's the problem? We're friends, if you need my help, I'll do my best.'

Professor Herb Boyle's words made Robert Swanson feel even more guilty, but he had already discussed it with Harry Morrison and others in the morning, and there was no way he could go back on his word.

So he gritted his teeth and apologetically said, 'Professor Herb Boyer, I'm sorry, we have done something to offend you?'

Professor Herb Boyer frowned and asked calmly, "What is going on? Is there a problem with the listing process?'

Robert Swanson hesitated for a moment and nodded, "You could say that. This is what happened: this morning a company called Polaris Capital approached us, wanting to buy all the shares of Genentech that our company holds.'

Having said that, Robert Swanson looked at Professor Herb Boyle with a guilty conscience.

The latter's moody mood had subsided and he continued his questioning with an expressionless face: 'And then? I want to know what you decided afterwards.'

Robert Swanson thought for a moment and continued: 'At first I strongly opposed it, but you know, I'm just a senior partner, I have the right to make suggestions, but the decision is not in my hands. Polaris Capital offered a very high price, so the company wants to cash out early and leave.'

'But Professor Herb Boyle, you can rest assured that Polaris Capital is much stronger than us, and we can sign an agreement with them to continue supporting you.'

Professor Herb Boyle nodded understandingly and said, 'Robert, I know you are also in a difficult position. I understand you, and I also understand your company's choice.'

'But please also consider my feelings. I don't care whether or not I go public. I just want to be able to continue my research smoothly, produce my research results, and bring hope of life to patients all over the world. You said that going public would raise more funds, so I let the company apply for listing. Your withdrawal may affect this goal.'

'I just have one request. I hope that no matter what, there will be enough funds to ensure the continuation of my research and production.'

Robert Swanson nodded in understanding: 'Professor Herb Boyle, I have always been clear about your thoughts. Don't worry, Polaris Capital will come back this afternoon. I will mention your request to them and include it in the agreement.'

Professor Herb Boyle's face softened and he said, 'In that case, I have no problem. Just let me know the price later. I need to know how much my company is worth.'

'Of course!' Robert Swanson replied quickly.

'By the way, if Polaris Capital agrees to your request, please let them know that I would like to meet with them,' Professor Herb Boyle added after a moment's thought.

'No problem!'

'That's it, I'll go back to the lab first. That data is crucial, and it's been bothering me for five days. I have a hunch that I'll be able to solve it in the next two days!'

'Okay, then I won't bother you anymore! I wish you all the best!'

...

Half an hour after starting work in the afternoon, Xia Yu arrived at the Coller Perkins company on time and met the three people from Harry Morrison in the same place.

Xia Yu quickly glanced around and took in the expressions of the three people, immediately understanding the situation.

It must have been a success!

But there was still a tough battle ahead, and the price would have to be driven down as much as possible.

If the news got out, it would affect the work of the other two acquisition teams and make the acquisition more difficult.

Fortunately, Xia Yu had considered this point beforehand, so he decided to launch the acquisition at the same time to catch them off guard.

'Mr. Morrison, how about you tell us what you've considered?'

Xia Yu looked directly at the three men and asked with a smile.

Harry Morrison's gaze was like a knife, and his whole body seemed full of aggression. He said in a deep voice, 'We have already considered it. We can sell you the shares, but only if you offer an appropriate price. The price you offered this morning is seriously not in line with Genentech's value!'

Xia Yu smiled faintly and asked, 'So how much do you think is appropriate?'

Xia Yu would ask this question, as they had already made an estimate in the morning, so Harry Morrison immediately said, 'I think 70 million US dollars is the only way to match its value!'

70 million US dollars, which is twice Xia Yu's morning bid!

Good guy, Harry Morrison and the others are also asking for a lot! Capitalists can be as thick-skinned as city walls for the sake of profit!

The price is negotiable. Xia Yu glared at him and said with an exaggerated expression, 'Mr. Morrison, you should know that Genentech's total assets are only a little over two million US dollars, and its profits are even negative. You are estimating its value at 280 million US dollars, which is outrageous. The valuation is a hundred times lower than the assets. Throughout the existence of capitalism, I have never seen such an exaggeration. Even in the semiconductor industry, which is highly sought after nowadays, there is no such a big gap!'

This is not the Internet era yet. The pharmaceutical industry is a high-tech industry, but it is also a traditional industry. There is no such thing as a valuation that is more than 100 times the asset value!

In other words, in the future Internet era, there will be an excess of capital, and high-quality unicorn companies will seem scarce relative to capital, so they will be repeatedly bid up.

But now, the venture capital industry has only just emerged for 20 years, and it has not experienced the craziness of the Internet era. Traditional capital will not accept this situation!

Harry Morrison was a little embarrassed, but on the surface he appeared calm and collected. Xia Yu did not counteroffer, of course he had to stick to his bottom line, and said with a gritting of his teeth, 'No, I think the price of 70 million US dollars is very appropriate. Genentech is different from an ordinary company, everyone has confidence in it. As soon as the technology patent goes into production, it will expand as if it were a blown-up balloon.'

As he spoke, Harry Morrison even drew a balloon with his hand to illustrate the process of inflation.

Xia Yu shook his head and argued, 'Mr. Morrison, we are sincere about buying, and we hope you are sincere too. Genentech is worth a maximum of 150 million US dollars! I think even when it goes public, it will only be worth that at most!'

A valuation of 150 million US dollars means that the value of their equity is 37.5 million US dollars. Xia Yu has increased the price by 2.5 million US dollars in one go, which is a pretty big concession!

The bargaining officially began. Harry Morrison also backed down a step and said with great difficulty, 'Okay, we are not unreasonable. We will back down a step and offer 67 million US dollars!'

Xia Yu retorted fiercely, 'Mr. Morrison, this price is very unrealistic...'

...

At first, it was Xia Yu and Harry Morrison against each other, but later everyone from both sides got involved. The negotiations became increasingly fierce, with spittle flying.

During the process, both sides kept testing and backing down.

In the end, Harry Morrison held fast to the price of 50 million US dollars, and no matter how much effort Xia Yu and the others put in, he refused to budge.

Xia Yu realised that this price was their bottom line, and Genentech's valuation of 200 million US dollars was also within his acceptable range.

Therefore, Xia Yu let go and agreed to the price.

With a reluctant expression on his face, Xia Yu sighed and said, 'Okay, Mr Morrison, you win!'

Harry Morrison smiled and shook Xia Yu's hand. 'Mr Xia, according to you, it's a win-win situation, isn't it?'

Since a deal had been reached, it was only normal to say something nice. Xia Yu shook his head and smiled. 'Maybe so, but the price is too high. Fortunately, it was me who came here, if it was someone else, they definitely wouldn't dare to make this decision! You guys are really good at talking!'

'Haha...'

After that, the two parties sat down again, and Harry Morrison once again made an unexpected request that surprised Xia Yu: 'Mr Xia, we have already agreed on the price, but we have one more request. This is a precondition set by Professor Herb Boyle. After you take over our equity, regardless of whether you continue to support the company's listing, you must guarantee Professor Herb Boyle's research funding and ensure that the company has sufficient funds for experiments and the production and research and development of drugs.'

This request was exactly what Xia Yu had in mind, and he readily agreed, 'Of course there is no problem. The fundamental goal is to develop the company well, and the research funding for Professor Herb Boyle can definitely be guaranteed!'

Harry Morrison nodded and smiled, 'Then there is no problem. By the way, Professor Herb Boyle asked us to convey a message on his behalf, and hopes to meet with you.'

'When?'

'The time is up to you, but hopefully as soon as possible!'

'No problem, after signing the agreement today, we will go and see him tomorrow, as a minimum of respect!'

'...'

After the discussion, the two sides began to sign the agreement with great efficiency.

Xia Yu had already prepared everything, and the agreement was completed that day. They arrived at the nearby Bank of America and transferred 50 million US dollars to the account of the Coller Perkins Company on the spot.

At this point, 25% of Genentech's equity was in hand!