Chapter 595 - 278: If You Want to Challenge a Giant Dragon

"Evelyn, you’re a professional," Leo sneered. "When does playing by the book in finance ever make you the big bucks? I don’t believe for a second that every move you make with those funds you manage is one hundred percent above board."

"So, you came to me today to get me to do your dirty work?" Evelyn shot back.

"You need a ’white glove’ from the private sector—me—to complete the final step for you, all so you can sidestep the Federal Government’s restrictions that prohibit municipal authorities from directly negotiating drug prices."

Evelyn looked at Leo.

"Since you’ve calculated everything so clearly, you must already have a concrete plan, right?"

Leo took a business plan, which he had prepared long ago, from his briefcase and tossed it onto the round table in front of Evelyn.

SLAP.

Leo pointed at the document.

"I want you to set up a new company."

"I’ve even thought of a name. It’ll be called the Pennsylvania Pharmacy Benefit Management company, or Penn-PBM for short."

Evelyn raised an eyebrow.

"Are you saying you want the non-profit Mutual Aid Alliance to do this?" Evelyn asked.

"No."

Leo shook his head.

"The Mutual Aid Alliance must remain clean. It’s responsible for representing the will of the people, for standing on the moral high ground."

"The dirty work needs to be done by someone else."

Leo’s gaze locked onto Evelyn.

"This Penn-PBM I want you to establish will be a commercial enterprise, through and through."

"It will be for-profit."

"Extremely profitable, even."

Evelyn set down her wine glass and reached out to flip open the business plan.

She read quickly, her fingertips gliding across the paper.

"You mean..." Evelyn looked up, a flash of surprise in her eyes. "You plan to exclusively outsource the Mutual Aid Alliance’s annual multi-billion-dollar drug procurement rights to this new company?"

"Correct."

Leo nodded.

"The Mutual Aid Alliance has a massive member base and a huge pool of capital. But it doesn’t have the professional expertise to negotiate with pharmaceutical companies, no actuaries, no supply chain network."

"You do."

"The Saint Claude Family has connections on Wall Street and holds shares in the pharmaceutical industry. You know how to squeeze the profits out of those drug companies."

"The deal is simple."

Leo extended a finger and drew a line on the tabletop.

"I’ll give you the entire drug procurement gateway for Western Pennsylvania, and potentially the entire state in the future."

"In return."

"You will use your methods to drive drug prices into the ground."

"You will force those pharmaceutical giants to spit out all the rebates they give to other PBMs and turn them into discounts on our purchase price."

"As for the profits generated in the process..."

Leo smiled.

"They’re yours."

Evelyn closed the document.

This was a huge temptation.

If this plan came to fruition, this Penn-PBM would instantly become the largest drug purchaser in Pennsylvania.

It would control billions of dollars in cash flow and hold pricing power over countless drugs.

But the risks were just as enormous.

"Leo, you’re playing with fire."

Evelyn calmly pointed out the problem.

"CVS, United Health, Express Scripts—these three giants have long since formed a community of interest with insurance companies and pharmacy chains."

"If I rush in now, I’ll be snatching food from their mouths."

"They’ll declare war."

"They’ll cut off supply chains, unite with the drug manufacturers to boycott us, and use their Lobbying Groups in Washington to change the laws."

"I may be rich, but I don’t want to fight a business war I’m destined to lose just for the sake of your political ideals."

"Besides," Evelyn looked at Leo, her gaze sharp.

"You’re nurturing a tiger that will come back to bite you."

"If I monopolize the channel, if I squeeze out all the other PBMs..."

"What happens when I raise prices later?"

"What will you do when I turn around and use that leverage to threaten the Mutual Aid Alliance, just like the giants do?"

"Capital is profit-driven, Leo. What makes you think I’ll always listen to you?"

This was a pointed question, and the core deadlock of all public-private partnership projects.

Hearing this question, a smile actually played on Leo’s lips.

He knew the negotiation was halfway to success.

Evelyn was no longer questioning the plan’s feasibility. Instead, she was starting to think about how to maximize her own interests within it, even rehearsing a future betrayal.

This meant she had already projected herself into the plan.

She really wanted to do this deal.

Leo didn’t avoid the question.

He walked over to Evelyn’s side.

"I’ve never believed in the conscience of a capitalist," Leo said lightly.

"The only thing I believe in is the reins of power."

"Evelyn, do you think those three giants can beat us?"

"In a free market, perhaps they could."

"But this is Pennsylvania."

Leo’s voice grew deep, laced with a sense of absolute control.

"As long as William is still in the Governor’s seat, and as long as I still control the Industrial Revival Alliance..."

"We are the ones who make the rules."

"I will push the State Assembly to advance the ’Medicine Benefits Transparency and Fairness Bill’."

"The bill will stipulate that all drug procurement involving in-state public funds, mutual aid funds, and pension funds must go through a local procurement service provider certified by the State Government."

"I will set the certification standards extremely high."

"So high that only your Penn-PBM can pass."

Leo turned his head to look at Evelyn.

"This is a state-sanctioned monopoly."

"I will legally kick them out of the game."

"In this state, they won’t be able to sell a single aspirin to our members."

Evelyn had considered Leo’s methods, but hearing him say it out loud was still shocking.