Chapter 61

At the beginning, when Grumman said they wanted the patent for the blue pill, Hu Wenhui was actually reluctant. You can't just give away the patent because they want it, right?

After all, besides the signing fee, the real profit from the blue pill is actually the patent usage fee. Compared to the expected patent usage fee of several billion dollars, a billion-dollar signing fee is nothing.

However, if the patent is given to Grumman, there is a concern: what if they reduce production after getting the patent? What if the profit doesn't meet expectations?

The core of this deal is the blue pill in exchange for the Tomcat. If China has payment issues later, what if Grumman proposes to exchange the patent for fighter jets? Hu Wenhui believes that if Grumman offers thirty F-14 Tomcats at once, the Air Force might even put a gun to his head to make him agree...

Therefore, the most ideal way in Hu Wenhui's plan is to find a third-party large biopharmaceutical company to acquire the patent rights, and then use the subsequent patent income to buy Tomcat fighters from Grumman.

This way, the pharmaceutical company and Hu Wenhui would be purely in a commercial transaction, making it much harder for any underhanded moves. If the pharmaceutical company reduces production, Hu Wenhui can simply revoke the patent license the next year and switch to another company to continue producing the blue pill. The Air Force can also temporarily endure.

Even if Grumman wants to exchange fighter jets for the patent, they still need the consent of the licensed pharmaceutical company. Even if both sides reach an agreement, the situation would be too ugly.

But as they say, plans can't keep up with changes. Hu Wenhui had his plans, but Grumman had no obligation to cooperate—moreover, he clearly underestimated Grumman's current situation.

Notice that in the 1990s, the world's third-largest defense conglomerate was called Northrop Grumman, not Grumman. What does this mean? It means that Grumman was acquired by the original Northrop, merging into a new Northrop Grumman.

Did Grumman just let Northrop acquire them? Of course not. In fact, Grumman's business difficulties were already evident at this time.

The most obvious point is that no matter how well the F-14 outperformed the F-15 in training, it was always the Eagle that was more popular in the export market. The F-15 Eagle fighter jet was equipped by the air forces of five countries outside the United States, while the F-14 had only one customer, Iran. Even the 342 Tomcats equipped by the U.S. military had been delivered many years ago.

This means that Grumman's F-14 production line had stopped. The F-15, F-16, and F-18 were still in continuous production to equip the U.S. or U.S.-supported countries.

Seeing their competitors making huge profits, how could Grumman not be anxious! Even the F-14's retirement from the U.S. Navy directly led to Grumman's acquisition by Northrop.

At this point, Grumman not only needed to open the Chinese market; their fundamental goal was to secure enough orders and cash flow to participate in the development of the next-generation U.S. fighter jet!

So when Grumman's current president, Norton, appeared, Hu Wenhui immediately realized he held a winning hand.

"Please authorize the patent for sildenafil to Grumman. We can agree to a billion-dollar signing fee and a 10% patent royalty on final sales..."

When Norton, as Grumman's president, personally said these words, the entire meeting room could only hear the sound of people gasping.

Not just the Grumman people, but the Chinese delegation led by Lin Qianjun was the one making the loudest gasps.

A billion dollars, what does that mean? China was in a trade deficit with the U.S. at the time, meaning imports exceeded exports. By the end of last year, after the New Year, the People's Bank of China found that it had only $2 billion in reserves.

In other words, the mighty China had only $2 billion in foreign exchange reserves.

By just signing a document, Hu Wenhui would immediately have an amount equivalent to half of China's national treasury in his hands—this money would be his personally!

Just after the reform and opening up, when there were no real private enterprises in China, this was a huge step.

Not to mention the 10% patent royalty, which no one in China had a clear idea of how much it would be. But no one doubted that Grumman would send a president to agree to a billion-dollar signing fee for just a billion-dollar business.

However, what was even more shocking was that no one expected Hu Wenhui to outright reject Norton's request!

"Sorry, Mr. President, I think Grumman lacks experience in the pharmaceutical industry. Producing and selling drugs should be left to professionals."

"Oh, that's exactly what I was going to say." Norton was not discouraged. He waved, and someone placed documents on the table: "Grumman is already acquiring a famous American pharmaceutical company. As of now, we have preliminarily agreed to acquire 15% of Pfizer's shares, becoming its largest shareholder, and expect to complete the acquisition within this year. Pfizer has extensive experience in drug production and sales, and can ensure the successful market launch of sildenafil."

"Alright, alright, I must say, President Norton's preparation is very thorough..."

Hu Wenhui was stunned. How did this project end up with Pfizer? Was this a coincidence or a convergence of timelines? Is the history of this world unchangeable?

What about his efforts to introduce the F-14 to China?

Hu Wenhui was in a daze. After thinking about these profound questions involving the structure of the world, he decided to give up and treat it as a necessary coincidence.

However, at least choosing Pfizer put Hu Wenhui at ease. Historically, Pfizer had made sildenafil a $200 billion business, proving they had the capability. Handing the market to them was reassuring.

But handing Pfizer to Grumman was another matter.

"But I still can't agree. Grumman being both the player and the referee in this cooperation will put us at a significant disadvantage."

Despite Hu Wenhui's subtle phrasing, everyone in the room, seasoned business veterans, understood his concerns. Falsifying sales or underperforming, then flooding the market after the patent holder is worn out, are basic business tactics in the capital world.

Norton was silent for a moment, then sighed deeply and nodded, "That's understandable. If the patent usage fee in the first year is less than a billion, Grumman can make up the difference with F-14s and spare parts."

"Damn."

The one who blurted out the national curse was the usually steady Lin Qianjun. Although he knew he shouldn't be ungrateful, Lin Qianjun really hoped the blue pill wouldn't sell a single unit after the contract was signed.

However, if the market didn't develop well in the first few years, this subsidy would be enough to equip a squadron of F-14s for the People's Air Force each year. Grumman might even prefer to use F-14s to offset the costs, as fighter jets are profitable and can avoid idle production lines, while patent usage fees are real cash outflows.

Hu Wenhui was truly surprised by Grumman's determination. Was Grumman going to be an American or a Chinese arms dealer from now on...

"To be honest, Mr. Norton, your determination has surprised me. It seems you are very optimistic about the prospects of sildenafil."

"Hehe, Mr. Hu, you are the same, otherwise you wouldn't have asked for a billion-dollar signing fee, right?"

Hu Wenhui blinked and suddenly smiled like a young man, "Actually, I think a billion dollars might be a bit low."

"As long as we get the patent for sildenafil—" Norton shrugged and smiled, "We are negotiating, after all. In negotiations, nothing is off the table."

...

One blow after another had left all the Chinese delegation members, including Lin Qianjun, in a state of shock.

"Alright, I admit Grumman is very sincere." Hu Wenhui nodded and actually pretended to think for a moment before suddenly saying, "One last condition. If Grumman agrees, the patent is yours. I want a major overhaul line."

"A major overhaul line?"

"A major overhaul line for the F-14."

This was the first time Norton fell into deep thought during today's negotiations. Lin Qianjun and Zhang Tianqiao exchanged glances, giving Hu Wenhui warning looks, indicating that this demand was too much.

What is an F-14 major overhaul line? While it is nominally for overhauling F-14s, it is essentially no different from an F-14 assembly line. Overhauls involve disassembling the fighter jet and inspecting and repairing all parts.

Many countries start by introducing fighter jet production capabilities through overhaul—assembly—self-production.

Selling such an overhaul line to China might mean that the Chinese could produce F-14s on their own in a few decades. Such a decision might require Grumman to use its lobbying power in Congress.

However, after a half-hour of deep thought, Norton placed his hands on the table and nodded, "An F-14 major overhaul line, no problem. However, the exclusive license for the sildenafil patent must be signed for ten years."

Hu Wenhui didn't think for long, almost without hesitation, he extended his hand, "Deal, Mr. Norton. I hope we have a pleasant cooperation."

"Mr. Hu, you are much more straightforward. I hope we have a pleasant cooperation." Norton actually sighed in relief and shook Hu Wenhui's hand tightly.

"Oh, by the way, do you have a name for the new pharmaceutical company?" Hu Wenhui asked, holding Norton's hand.

"Not yet, do you have any suggestions?"

"Hmm, how about calling it Umbrella?"

"Hehe, no problem."

OK! Show me the money!

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