Jianghai Securities: The first prescription of the new diabetes drug Yinoqing was issued nationwide. It is recommended to pay attention to related enterprises in the GLP-1 class drug industry chain.

Jianghai Securities released a research report stating that Shanghai Yinnuo Medical Technology Co., Ltd.'s self-developed new diabetes drug, Yinoqing (exenatide alpha), has been officially approved for marketing and the first prescription in the country has been issued. Yinoqing, as the first domestically produced original long-acting GLP-1 receptor agonist product, has significant advantages and is expected to benefit many diabetes patients. With the increasing number of diabetes patients in China and strong policy support, the potential of the related innovative drug market is huge. It is recommended to pay attention to enterprises involved in the research and development of GLP-1 drugs and other related companies. With the continuous enhancement of domestic policies and the active response of Chinese innovative pharmaceutical enterprises, the continuous marketing of innovative drugs by Chinese pharmaceutical companies will challenge the global position of semaglutide products. The main views of Jianghai Securities are as follows: Yinoqing is the first domestically produced original long-acting GLP-1 receptor agonist product in China, benefiting more diabetes patients. Yinoqing, the first domestically produced original long-acting GLP-1 receptor agonist product, was approved for marketing by the China National Medical Products Administration in January 2025, bringing a revolutionary breakthrough to the field of diabetes treatment and benefitting a large group of diabetes patients. This product not only showcases the strength of domestic innovation in the biopharmaceutical field but also indicates its significant impact globally. In addition, Yinnuo Medical is actively exploring the potential of exenatide alpha (Yinoqing) in the indication of obesity and metabolic disorders related to fatty liver disease to meet urgent clinical demands. On February 11th, Yinoqing successfully issued the first prescription nationwide at the Sixth People's Hospital of Shanghai and Gulou Hospital in Nanjing. With a half-life of 204 hours, it outperforms similar drugs like semaglutide and achieves a 2.2% decrease in glycated hemoglobin levels after 24 weeks of monotherapy, leading to a significant weight loss of 4 kilograms within 4 weeks. This series of data marks a moment of "DeepSeek" innovation breakthrough for the Chinese biopharmaceutical industry, which can lead global trends in biopharmaceutical innovation and have a profound impact on them. China has the highest number of diabetes patients in the world. China has become the country with the highest number of diabetes patients globally, a serious situation reflected in the latest global diabetes map released by the International Diabetes Federation (IDF). According to the Global Diabetes Map (IDF Diabetes Atlas) (9th edition) in 2019, China has a staggering 116.4 million diabetes patients aged 20-79, surpassing India's 77 million and the USA's 31 million. More concerning is that this number continues to grow rapidly, with an expected increase to 578.4 million global patients by 2030, with China remaining at the forefront. According to the latest data released at the EASD annual meeting by IDF (Global Diabetes Map 2022 version) on September 19, 2022, over the past decade (from 2011 to 2021), the number of diabetes patients in China has surged from 90 million to 140 million. At the same time, around 170 million adults are in a prediabetic state, with impaired glucose tolerance (IGT) increasing sixfold compared to 2011. The prevalence of diabetes and prediabetes in China continues to rise significantly, forecasting a total of 164 million patients by 2030 and a further increase to 175 million by 2045. This trend is mainly attributed to lifestyle changes brought about by urbanization and population aging. Although the Chinese anti-diabetes drug market is currently dominated by traditional drugs, it is estimated that by 2030, the market size of anti-diabetes drugs in China will reach 259.2 billion RMB, with the improvement of patients' ability to pay, the improvement of the medical insurance system, and the development of innovative drugs. Continuous government support, policy guidance, and technological promotion are evident in policy documents. Internally, a series of continuous policy supports have provided strong policy guidance and technical promotion for diabetes prevention and control work. From the "Healthy China 2030 Planning Outline" to the "Healthy China Action (2019-2030)" and other policy documents, the prevention and control of diabetes have been raised to the level of national strategic importance. The "Healthy China Action - Implementation Plan for Diabetes Prevention and Control (2024-2030)" specifically calls for the establishment of an integrated diabetes prevention and control system that is linked vertically and horizontally, aiming to significantly improve the effectiveness of prevention and control. The plan also emphasizes promoting the application of research achievements in diabetes prevention and control and actively supports the on-the-ground application of new technologies and products in the field of diabetes prevention and control. As an integral part of the "Healthy China 2030" special action, diabetes prevention and control work has received significant attention, and new drug development has also received strong support from the "Major New Drug Creation" special project. Yinnuo Medical's exenatide alpha has benefited from accelerated approval due to policies. Investment recommendation: With continuous government support and the development of innovative pharmaceutical companies, Chinese pharmaceutical companies' innovative drugs are expected to challenge the global position of semaglutide. It is recommended to pay attention to enterprises engaged in the research and development of GLP-1 drugs, such as Huadong Medicine (000963.SZ), Shanghai Fosun Pharmaceutical (02196,600196.SH), INNOVENT BIO (01801), Tonghua Dongbao Pharmaceutical (600867.SH), Gan & Lee Pharmaceuticals (603087.SH); chronic disease management and equipment companies, such as Sinocare Inc. (300298.SZ), Jiangsu Yuyue Medical Equipment & Supply (002223.SZ); companies in the upstream and downstream of the GLP-1 drug industry chain, such as Jiangsu Sinopep-Allsino Biopharmaceutical (688076.SH), ChengDu Sheng Nuo Biotec (688117.SH). Risk warning: Risks of R&D falling below expectations, intensified market competition, policy changes. changing risk.Traduzir para o ingls: