The board of directors of Sihuan Pharmaceutical Holdings Group Ltd. announced that, the investigational new drug (IND) application of insulin degludec and liraglutide injection, developed by Huisheng Biopharmaceutical Co. Ltd. ("Huisheng Biopharmaceutical"), a non-wholly owned subsidiary of the Group, for the treatment of type 2 diabetes has been approved by the National Medical Products Administration (the " NMPA") of the People's Republic of China ("China"). Insulin degludec and lIRaglutide injection is the first marketed compound in the world composed of basic insulin analog and GLP-1 analog.

It combines the two-component advantages of insulin degludec & liraglutide, has a significant effect on blood glucose lowering and shows weight loss efficacy at the same time. It is used to treat type 2 diabetes. Insulin degludec & lIRaglutide injections is injected once a day, reducing the frequency of injections and improving medical adherence in patients.

When the dosage of insulin is same or lower, its blood glucose lowering effect is superior to basic insulin treatment alone, meanwhile reducing the risk of hypoglycemia and eliminating the side effects of insulin treatment on weight gain. Insulin degludEC and liraglutides injection is recommended in the China Guideline for Type 2 Diabetes (2020 Edition). It belongs to Category B drug under the National Reimbursement Drug List ("NRDL").

China has the largest number of diabetes patients in the world. The number of diabetes patients was about 140 million in 2021, and it is predicted that it will increase to 174.4 million in 2045. As a chronic disease, diabetes needs lifelong medication, so the diabetes market has a huge demand.

Insulin degludeca and liraglutIDE injection, currently only marketed by its developer Novo Nordisk in China, was approved for marketing in China in October 2021 and was included in the NRDL in 2022. It is currently in a rapid expansion period in China.