Viewing Future Stock Prices

Now give me some stock options 02

＜7＞

Lunch box for 16,000 won.

Professor Bae Sang-gi’s personal assistant brought two lunch boxes. It is not a bad lunch box with side dishes such as bulgogi, pancakes, anchovies, and seaweed soup.

“Professor Choi. Let’s talk while we eat.”

First, Professor Bae Sang-gi takes out his chopsticks.

Professor Bae Sang-gi has a full beard and thick glasses. Uncharacteristically for a professor, he has rather long curly hair and looks like a film director. There are dark circles under his eyes.

“professor. What are you doing? Thank you for contacting me suddenly. I came on time, but…”

Hyeon-jun asked insinuatingly as he peeled off the plastic bag. Professor Bae Sang-ki opened the disposable plastic lids one after another, then looked up at Hyeon-jun.

“There are things to ask for and opinions to seek. It’s lunchtime, so let’s eat some first.”

“Ah yes.”

Hyeonjun picked up a spoon and took a spoonful of seaweed soup and ate it. Salty, but not bad taste. Hyeon-jun, who was holding a piece of bulgogi to his mouth, looked at Professor Bae Sang-gi again.

Currently, the best professor in Daemyung University.

He is the founder and CEO of ‘New Drug NS Science’, whose market capitalization has reached 150 billion won, albeit on an off-the-counter basis.

Professor Bae Sang-gi was the one who had the envy and jealousy of the professors on campus.

“Professor Choi.”

“yes?”

“The other day, we submitted our clinical trial application and IND (Investigational New Drug) application. They say that the results can come out in early March at the earliest.”

“Oh yeah? That’s good.”

“Passing the IND is natural, so is there anything special? Now, it’s the beginning of phase 1 clinical trials. Our expectation is that since phase 1 clinical trials are safety evaluations, NSC-08382-T01 will easily pass until phase 1 clinical trials. The problem starts with phase 2 clinical trials.”

“yes. That’s right. Still, the animal efficacy test has shown great numbers, so won’t it work out in the future?”

“The other is like that. Well, Professor Choi is well aware, but the goal is not to launch a product after we dragged it to phase 3 clinical trials. We don’t have the resources to do that. Anyway, our role model is Gilead Sciences, after all, technology transfer.”

Hyunjoon nodded.

Gilead Sciences, which started as an American bio venture 30 years ago. Today, however, the company has grown into a global pharmaceutical company.

15 years of loss since founding. However, the technology transfer of Tamiflu to the Swiss multinational pharmaceutical company Roche took a big leap forward. 22% of Tamiflu sales. I signed a contract to receive this as a royalty.

In this way, the enormous proceeds obtained through Tamiflu royalties. In addition to company expansion, this was poured into research and development (R&D) investment, and eventually it was able to emerge as a global pharmaceutical company.

The same goes for the development strategy of New Drug NS Science.

The practical strategy is to verify the value of technology through technology transfer, expand the company’s R&D and expand development items through royalty supply and demand.

“This is an absolute secret, Professor Choi! You can never say it anywhere.”

So Professor Bae Sang-ki gave a warning and continued talking.

“Professor Choi has been involved in our company’s work for about a year now, so he must be familiar with the technical aspects and the circumstances of the company. Currently unofficial, there are two companies willing to transfer technology for NSC-08382-T01.”

At that moment, Hyeonjun’s eyes twinkled. Unexpected good news. Perhaps, if the president hears this news, isn’t it the kind of high-quality information that will make his eyes glow? Of course, Hyun-jun has no intention of leaking such secrets to the president.

Who else is trying to do something good.

“…First of all, in North America, a multinational pharmaceutical company called NovaCEM is very interested in our technology. I met with that technical staff at the last LA conference, and there are additional technical meetings scheduled. If negotiations go well in the future, there is no possibility of technology transfer.”

At this time, Hyun-joon made a surprised expression.

A company called NovaCEM is a multinational company Hyun-joon knows well. If you transfer technology to a company like this, the word jackpot would be justified.

“And the other side is the Chinese side. It’s a company called China InoPharm Inc. It’s a great deal that goes into the top ten of China’s pharmaceutical rankings. Professor Choi, have you ever heard of it?”

“I am hearing it for the first time.”

“Ah, yes, it can be. Because exchanges with Chinese pharmaceuticals are still weak. There’s someone I know well in their management. Because we know each other. Fortunately, they are very active and offer very good conditions. Well, under that condition, China InoPharm is even better.”

This means that the two companies are in contact behind the scenes.

“professor. This is my personal opinion, but wouldn’t NovaCEM be better than China InoPharm? Doesn’t NovaCEM have a much better corporate image and market ripple power including marketing capabilities?”

“Well, that’s right. However, advance contract fees vary from company to company. The technical fee for success according to the milestone is completely different. NovaCEM pays a lot of royalties only when it goes through FDA approval and leads to sales, but China InoPharm has a fairly high milestone fee from the development stage. we need money now to do anything.”

“So, are you saying that China InoPharm is much better?”

“first.”

Hyunjoon smiled bitterly.

Although the Chinese market is said to be large, China InoPharm cannot yet be called a global pharmaceutical company. As the Chinese market is so large, the scale of sales naturally grew enormously.

For a company planning a technology listing on the KOSDAQ, it is much better to choose NovaCEM as a partner rather than China InoPharm.

“So I wanted Professor Choi to help me. It’s purely business now. Selling a license itself is a highly technical business. If Professor Choi could help, it would be of great help. Well, Professor Choi is not a stranger. Aren’t you a member of our company’s technical advisory committee?”

That is, ask for help.

Acting like a face madam when doing technical sales. Along with the practical role of defending various questions.

That’s why Professor Bae Sang-ki is trying to jump here and there himself, so he’s running out of energy. That said, I can’t leave that important task carelessly, so I’m asking Hyeon-jun.

“professor.”

“uh? So will you help me?”

“To say thank you, as you know, even if I am a technical advisor, there is nothing sharp yet. I’m sorry to say this, but shouldn’t there be something suitable for me to be more active?”

At that moment, Professor Bae Sang-ki noticed immediately. He is also a smart person.

But even so, he had been pretending not to know, and he was the kind of person who didn’t readily give anything.

“Um, you mean stock options?”

“I’m sorry to say it with my own mouth, but wouldn’t it be possible to connect something at least that way?”

“I should have helped Professor Choi some time ago in the form of an order for research funds.”

Professor Piljoong Kim of Korea University, a large-scale research project he planned. In that research project, Hyun-Jun intervened as a co-researcher, and then Professor Bae Sang-ki provided some help. As he became a co-researcher of the research project, Hyun-joon is receiving research funds of 50 million won every year for 3 years.

But what a big deal.

It’s not money that goes into the professor’s pocket from national research funds.

Miscellaneous expenses such as student labor costs (scholarships), material costs, research facility utilization costs, analysis fees, industrial complex overhead costs, etc., are constantly being spent.

It’s not like I’m just writing it. You have to submit research reports, and you have to publish SCI papers.

At this time, there are a lot more chores, such as handling research fund receipts. When a professor is like this, he will be doing a job that is no different from managing the finance team of a general company.

“professor. that···.”

When Hyeon-jun immediately made an embarrassing expression, Professor Bae Sang-gi changed his expression again and opened his mouth.

“Well, the size of the work is different from that time. Then specially… I’ll give you some stock options. How about it? help me out.”

Are you really desperate?

So, he must be saying that Professor Bae Sang-gi, a miser, gives out stock options.

“Then what level is it?”

At this time, when Hyeon-jun did not immediately agree to his proposal and asked again, Professor Bae Sang-gi, who immediately frowned, answered in a rather dull voice.

In fact, stock options mean that there is no immediate effect on the company right now, but eventually the stock passes into someone else’s hands. In other words, a stock option is a right to buy treasury stock after a certain period of time, a kind of call option.

“Um, suddenly, I’m having a hard time too…. Jung Then I have to make a decision too. Professor Choi! Event price 5,000 won, 10,000 shares! Is this good enough? Hold the exercise of the option for about three years.”

The right to purchase 10,000 shares in the future at 5,000 won per share?

but i don’t like it

“professor. Could you please give me a little more?”

Then, Professor Bae Sang-ki glared at Hyun-joon with a frown.

The eyes are slightly sharpened.

“Professor Choi was secretly greedy. I didn’t know.”

However, Hyun-joon laughs.

Can a person not be greedy? It’s all about eating well and living well.

“Hmm, then this is the last suggestion, so listen carefully. Strike price 5,000 won, 20,000 shares. It’s never more difficult than this. They’re scrambling to buy each other now. You know that you can’t buy unlisted stocks like ours with money, right?”

However, Hyun-joon is still not satisfied. 20,000 shares at 5,000 won. It’s an investment of 100 million won at most. No matter how well you catch it, the profit is only a few hundred million won? Now, the scale of Hyun-joon has no choice but to change.

“professor. Can I suggest something else instead?”

“proposal?”

“yes. In the end, NovaCEM is… isn’t it saying that the technology fee for each milestone is insufficient?”

“···therefore?”

“I’d rather be on the NovaCEM side. Isn’t it natural to consider NovaCEM as a strategic partner if we can match the technology fee for each milestone to almost the same level as China InoPharm?”

“Well, that’s it, but.”

“The event is 3,000 won, 500,000 shares, and the deadline is 1 year! However, technology transfer to NovaCEM is confirmed. I will make this a condition of my contract, and if I do not reach this condition, I will immediately return all of my stock options. This is my proposal.”

At that moment, Professor Bae Sang-gi’s expression visibly distorted.

The strike price is half the current unlisted market price, and the number of option stocks is 500,000 shares, something Professor Sang-ki Bae never thought about.

Absolutely unacceptable conditions.

But the clever Professor Bae Sang-gi immediately had a different count.

If the technology transfer to NovaCEM fails, the stock option contract will be rendered useless. In the end, if you think about it, it’s only good for yourself.

An offer from NovaCEM that looks a little bit like a gimmick. If he leaves that to Professor Hyun-Jun Choi and actively negotiates with China InoPharm, the existence of NovaCEM itself can be of great help in negotiating with China InoPharm.

“Hmm. Give me 500,000… But even if I want to buy this later, does Professor Choi have the money?”

In other words, even if it is a stock option, you have to buy 500,000 shares directly at 3,000 won per share. The purchase cost alone is 1.5 billion won.

“That is my problem.”

Hyeon-jun cuts with a single knife.

Prof. Bae Sang-ki immediately closed his mouth and thought for a moment. However, soon after, Professor Bae Sang-gi’s eyes brightened.

“I thought Professor Choi was just a sincere person, but he also had negotiating skills. saw it again Then do it.”

That’s how the lunchbox meeting came to an end.

After a while, a smile spread across Hyeon-jun’s lips as he walked out of Professor Bae Sang-gi’s office.

I forgot all the future stock price data in the regression process, but that doesn’t mean I missed the regressor’s benefit.

A pharmaceutical venture from the College of Pharmacy at Daemyung University.

This means that I clearly remember the transfer of technology to a global pharmaceutical company.

At the time of listing, it was a great hit and made a fuss in the newspaper. The name of the company is also vague, but logically, Prof. Bae Sang-ki’s New Drug NS Science would be right.

Assasa! Oh yeah!

Why are you so lucky today?

Should I at least dance?

and after a while

Hyun-joon, who returned to his professor’s office, opened the stock trading app for the first time at 2:00 pm and took a look at the current market situation.