We know we all are on the path of the global recession. The questions remain how worse the economy will be and how soon we together could work out. The Chinese market is recovering but still waiting for the lights of hope of Europe and the North American market, which we all are struggling to reach the peak of COVID19, respectively. The meeting of G20 this month discussed many things in a very political way, which are significant, sounds good, but none is practical to save lives. We have to protect ourselves. We have to survive during this historical human and economic crisis, here are my thoughts:        

Check working capital

Today is the end of the first quarter of 2020. You need to review the 2020 budget with your chief financial officer and. Whatever you are burning investors’ money, or it is a mixture of the investment and the revenue, you need to carefully look at your monthly paid out and paid in, 12 months working capital is minim.You need to discuss with investors and bankers on possible continuing investment and loans and actively engage with the current economic stimulus plan. Please also re-examine Inventory “turns,” customer credit policy, administrative expenses carefully.  

Plan for market changes

If you already have operations outside your home, do not lose control during the period; what is happening here does happen there. We should believe that the outbreak of coronavirus and incoming recession change national governance, market, business environment fundamentally. Therefore, we have to stick with the changes mentioned above. For instance, after China released the aggressive healthcare reform plan in February, the US and Canada are planning the same thing as well. 

Stay focus on R&D

Do not cut R&D expenses; stay focus on the core technologies, outsource non-core R&D activities. One possible and welcome change would be a reversal in the decline of government-led investments in critically essential sectors of the economy. The decrease in spending on healthcare and biotech R&D as a percent of GDP put the US at a noticeable disadvantage to the competitors globally. New programs should be funded to increase preparedness for future disease outbreaks.  

Re-examine supply chain

Joe Zidle, Chief Investment Strategist from Blackstone, notes that the US-China trade dispute started to pressure companies might be forced to choose between efficiency and supply chain security. The decision could result in higher-paying manufacturing jobs, but at the expense of lower profit margins or higher prices. We will see what’s going on very shortly. However, the urgency is that make sure the supply chain is still working, changes in component price and transportation costs, whether the cost structure affects price and quality. The alternative should be prepared. 

Eventually, scientists will produce a breakthrough vaccine, and the frozen global economy will thaw out. However, meantime, stay safe, wash hands, wear mask and glove, reduce costs, stick on changes, be well prepared.

Gene Seq -200 – Open to Collaboration in US and Canada Market

TMFOX is happy to partner with GenePlus Technology(Gene+), a Beijing based biotech company, with its 30 million USD fundraising and business development to the US and Canada market. Gene+ was founded by the ex-chief operation officer of BGI, a leading life science and genomics company in the world.

Gene+Seq 200 sequencer  is designed for tumor-related applications, which featured as accurate, fast, and safe detection. Gene+Seq 200 sequencer has over 30 hospitals and lab installations in Asia and is now looking for partnerships in the US and Canada. Please contact me directly if you have any interests.