NOVEL NEXT WORLD 51
“M-Biogen went public through a backdoor listing by acquiring Insung Biotech, a KOSDAQ-listed company, two years ago.”
Dokyung had left his room and was now in the branch manager’s office.
Ryu Tae-hwa was listening intently to Dokyung’s briefing.
“It caused quite a stir at the time, as M-Biogen, only two years old, was acquiring a 30-year-old company.”
“I remember. Even though its technology had become outdated recently, it had been on KOSDAQ for 15 years.”
“But as you said, it was a declining company. Insung Biotech’s management chose to be acquired as their exit strategy.”
Ryu Tae-hwa nodded at Dokyung’s words.
Backdoor listings were quite common in the market.
“M-Biogen had some solid investors. As you know, the founder, Kim Changseon, had long led new drug development research at ID Bio, a global pharmaceutical giant.”
“Did ID Bio just sit back and watch? For someone to leave a pharmaceutical company to start another pharmaceutical company… for them…”
“ID Bio actually made the initial investment. It seems they felt it wasn’t a losing proposition from their perspective.”
In the pharmaceutical world, if a new company’s technology was proven, they were eager to acquire it. It seemed there had been some agreement between Kim Changseon and ID Bio.
“Did a lot of FIs (Financial Investors) join in?”
“Yes. With a story in place, investors probably thought they had nothing to lose. In fact, when the stock price rose after the backdoor listing, investors exited with more than double their investment.”
If someone who had been doing development research at a major semiconductor company for 20 years left to start their own semiconductor company, money would naturally start pouring in.
M-Biogen seemed to have benefited quite a bit from its founder’s reputation.
Dokyung turned to the next page of the document and looked at Ryu Tae-hwa.
“That’s the listing story. Now, M-Biogen, which had been quiet for a while after the backdoor listing, seems to be gaining word-of-mouth popularity among the upper class recently.”
“The upper class?”
Ryu Tae-hwa asked, sounding puzzled.
“Yes, the client who suggested I consider buying M-Biogen stock based on this information told me he heard about it at the Hansung Club.”
“The Hansung Club is indeed a gathering place for the upper class…”
“So, while I was investigating this, you also happened to mention it, Branch Manager…”
As Dokyung’s words suggested an explanation was needed, Ryu Tae-hwa pondered for a moment before speaking.
“I have the same reason as Yoon Dokyung-ssi. Though I didn’t know it came from the Hansung Club.”
“I see. Do you know about the rumors going around?”
At Dokyung’s question, Ryu Tae-hwa shook his head.
“I don’t. I was just asked how I viewed M-Biogen.”
“Recently, there’s a rumor among investors that M-Biogen has developed a new drug candidate for diabetes.”
“Diabetes?”
“Yes. As you know, Branch Manager, diabetes generally requires lifelong management.”
“That’s right. I know someone who struggles with diabetes.”
“That’s why major pharmaceutical companies are also racing to research and develop a cure for diabetes.”
In reality, pharmaceutical companies’ investments in kidney disease and diabetes-related research were enormous.
The future profits at stake were astronomical, to the point where they would acquire small companies just on the news of discovering a new drug candidate.
“So, do they have solid technological prowess?”
“Based on news articles and various reports I’ve reviewed, M-Biogen has continuously raised funds through new share issuances, and it appears they’ve invested almost all of it in research and development.”
“The founder seems sincere.”
“Yes, from the various interviews I’ve seen, he seems to be a person with a clear philosophy of his own.”
Ryu Tae-hwa looked surprised at Dokyung’s assessment. For Dokyung to speak like this was as good as praise.
“However, you know well that this is far from guaranteeing success in new drug development.”
Dokyung looked at Ryu Tae-hwa with a serious expression.
“New drug development is a battle of time, money, and technological prowess. Even companies with all of these struggle to guarantee success in new drug development, so if a company lacks even one of these…”
“What does M-Biogen lack?”
“They only have time.”
Dokyung evaluated coldly.
“Let’s talk about money. Of course, they’re currently securing research funds through new share issuances and stake sales after successfully backdoor listing with investments from various investors, but this can’t be done indefinitely.”
“That’s true.”
“They need a stable pipeline. However, M-Biogen currently has no pipeline at all.”
This was the biggest concern Dokyung had earlier.
Major pharmaceutical companies are well aware that their business requires a lot of capital investment.
To address this, they create pipelines that can generate steady revenue.
They start by building a pipeline, copying and selling painkillers or replicating and selling drugs with expired patents, before diving into new drug development.
However, M-Biogen seemed to be rushing into new drug development as if being chased.
“In my personal opinion, M-Biogen seems to be dressing itself up to look like very attractive prey for major global pharmaceutical companies.”
“The business is weak… Then what about their technology? Shouldn’t we consider that they have technological prowess?”
“Of course, Kim Changseon, the founder and head of development, surely has know-how in new drug development. However, the infrastructure of a major pharmaceutical company and that of M-Biogen are different.”
Kim Changseon was like a flower in a greenhouse. Unlike when he only had to worry about new drug development, he was now the CEO of a company.
“If I had the decision-making power, I wouldn’t invest a penny of my money in such a company.”
At Dokyung’s confident words, Ryu Tae-hwa nodded.
Based on the report he had heard so far, Dokyung’s words were absolutely correct.
“What if the new drug development is real?”
“Then it wouldn’t be too late to buy when they’re preparing to launch the drug after completing phase 3 clinical trials.”
If one were aiming for over 1,000 times return, they might enter now, but Dokyung thought it was better to enter when there was substance.
The stock market wasn’t a gambling den, after all.
“Not just me, but many experts would predict the same. Stocks are ultimately about realizing profits, and if you enter now, it would be difficult to time the profit-taking.”
“Good. May I keep this report to review further?”
“Yes, I brought a copy for you to keep.”
“You’ve worked hard. You must be busy, let’s talk more later.”
At Ryu Tae-hwa’s words, Dokyung stood up, bowed, and left the branch manager’s office.
Ryu Tae-hwa, who had been absentmindedly staring at the door Dokyung had exited while tapping the armrest of the sofa, stood up and made a phone call.
“Vice President, I’d like to come to the headquarters now.”
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“They say we should invest because they have technological prowess…”
Sim Ju-won, Vice President of Yuseong Investment Securities’ WM Division, massaged his temples as if he had a throbbing headache.
All the reports that had come in unanimously viewed M-Biogen as an attractive investment.
Of course, from their perspective, not knowing the inside story, they would say it looks good just based on the company alone, but this wasn’t the answer Sim Ju-won wanted.
Knock knock-
Just then, the door opened with a knock, and his secretary entered.
“Oh, what is it?”
“Branch Manager Ryu Tae-hwa from the Seongnam Branch is here.”
“Is that so? Show him in.”
Sim Ju-won said this and got up from his seat, moving to the sofa in the center of the vice president’s office.
“Vice President, it’s been a while.”
“Ah, come in.”
Sim Ju-won gestured for Ryu Tae-hwa to sit down at his greeting, and Ryu Tae-hwa sat where Sim Ju-won indicated.
“You look much better.”
“As I mentioned on the phone last time, it’s interesting. Actually dealing with customers, I’m learning about various difficulties that can’t be felt here.”
“Are you feeling sorry for the branch managers you used to grill?”
As Sim Ju-won asked amusedly, Ryu Tae-hwa pondered for a moment before shaking his head.
“No, not really. They were clearly in a situation where they weren’t doing their job.”
Of course, he did feel sorry, but his actions at that time were justified.
“Hahaha, this is why I like you, Ryu Tae-hwa.”
Ryu Tae-hwa didn’t make choices he would regret. That’s why Sim Ju-won liked him.
When everyone around was praising Sim Ju-won’s judgments as correct, Ryu Tae-hwa was someone who could tell him when something was wrong.
“Here’s the report on M-Biogen that you asked about.”
Ryu Tae-hwa quickly changed the subject, as if uncomfortable with being praised.
“Let’s see…”
Sim Ju-won picked up the report with a serious expression and began reading.
As he read the first page, Sim Ju-won’s eyebrows changed moment by moment, and he quickly moved his gaze to the conclusion section.
“Investment grade F?”
“Yes, the conclusion is that it’s better not to invest.”
“I understand the reasons well, they’re written in the report. But if news of M-Biogen entering clinical trials comes out tomorrow, the stock price will rise. You’re still against it?”
“Yes, because what you’re saying is also hypothetical. I don’t want to gamble.”
Sim Ju-won chuckled at Ryu Tae-hwa’s words.
Ryu Tae-hwa was the only one who had brought the answer he wanted.
“Now I’d like you to tell me.”
“Tell you what?”
“You’re not someone who asks employees about specific stocks. I’d like to know why you suddenly asked, if I may.”
Sim Ju-won knew well that Ryu Tae-hwa’s style was to unconditionally carry out orders from above first, and then ask about the reasons related to that task.
“It might be better not to talk about this elsewhere.”
“I never discuss conversations I have with you with anyone else, Vice President.”
Sim Ju-won nodded at Ryu Tae-hwa’s words.
“TO is interested in M-Biogen.”
At Sim Ju-won’s words, Ryu Tae-hwa’s lips quivered.
There was only one person in Yuseong Investment Securities whose name was referred to by initials.
“You mean the Group Chairman?”
Sim Ju-won nodded slightly.
“Why would the Chairman suddenly…”
“You know well. TO’s personality is quite bold.”
More accurately, he was someone who wanted to appear bold.
The Yuseong Group had suffered numerous times due to the Chairman’s personality.
Whenever he came back from outside boasting that he would invest in technology, caught up in the atmosphere, every affiliate had to analyze and prepare resources for investment.
“Where did the Chairman get this information…”
“Seo Gihwan of Gwangjin Group.”
As Seo Gihwan’s name came out of Sim Ju-won’s mouth, Ryu Tae-hwa found it difficult to control his expression for a moment.
Anyone deeply involved in the stock market couldn’t help but know Seo Gihwan.
“Chairman Seo has started playing with money again, I see.”
“Well, it’s that man’s hobby.”
Seo Gihwan had made significant gains by investing his personal funds in various stocks.
He was someone more passionate about stocks than management, to the extent of writing books about stock investment under his own name.
The problem was that this passion wasn’t about proper methods.
“He must have heard rumors related to M-Biogen.”
“Rumors?”
“Yes, Chairman Seo is known for moving money based on rumors rather than study, isn’t he?”
“No, not that. What rumors are going around?”
“I heard that within the Hansung Club, there’s a rumor that M-Biogen has developed a new drug for diabetes treatment.”
Sim Ju-won furrowed his brow.
“Then…”
“Chairman Seo, being on good terms with our Chairman and fond of boasting, probably dressed up this tabloid-level rumor as premium information and spread it among the chairmen.”
“Right, that’s exactly what that man would do.”
“But I find it a bit strange that our Chairman was swayed by Chairman Seo’s words.”
The Chairman of Yuseong Group, while a bit of a goofball and wanting to appear bold in front of others, wasn’t a fool.
Even the investments mentioned earlier, in retrospect, turned out to be investments that allowed the company to take the lead in the industry.
The reason he wanted to be number one in every business Yuseong Group engaged in was because he had done well in business.
From his time as a successor, he managed every business he touched with tenacity until it succeeded, and as a result, some media outlets still gave him the title of a business genius for his significant achievements.
“I find that strange too. It’s as if… he’s being chased by something.”
At those words, Ryu Tae-hwa pondered for a moment before looking at Sim Ju-won.
“Vice President, this report was written by Yoon Dokyung-ssi.”
“What? You didn’t…”
“No, I didn’t say anything. I just asked the employees for their opinions on M-Biogen, and it happened that Yoon Dokyung-ssi was investigating M-Biogen.”
“Why was Yoon Dokyung looking into it?”
“He said a client brought information about M-Biogen.”
Sim Ju-won furrowed his brow at Ryu Tae-hwa’s words.
“Don’t you see the pattern? Chairman Seo lured our Chairman with tabloid-level information that even ordinary clients know about.”
Sim Ju-won also didn’t trust Seo Gihwan. Most of his stock performance results were inflated, and even reading the books he published about stocks, he was just repeating what others had said.
“I know. That’s why I’m going to submit the report you brought to the Chairman.”
Sim Ju-won held the report in his hand and looked at Ryu Tae-hwa.
“For now, it’s better not to mention Yoon Dokyung’s existence.”
“Yes. I think that would be better for you too, Vice President.”
Of course, both Sim Ju-won and Ryu Tae-hwa believed in Dokyung’s skills and abilities.
However, presenting a report written by a PB who had just passed his first year to address an issue directly ordered by the Chairman could offend him.
“I’m heading to the group headquarters now. How about we leave together?”
“…I think it’s not yet appropriate for the employees to see. I’ll sit here a bit longer and leave later.”
Ryu Tae-hwa thought that if employees saw him together with Sim Ju-won, they would surely gossip behind Sim Ju-won’s back.
“I think you can have more confidence after all this time, but I won’t force you if that’s how you feel. Take care on your way back.”
Sim Ju-won patted Ryu Tae-hwa’s shoulder and left the room, and Ryu Tae-hwa stood up and bowed to Sim Ju-won.