The board of directors of Sihuan Pharmaceutical Holdings Group Ltd. announced that, Huisheng a peripheral neuropathy drug developed by Huisheng Biologicals Co. Ltd., a non-wholly owned subsidiary of the Group, has been approved for clinical trials from the National Medical Products Administration (the "NMPA") of the People's Republic of China ("China") of Semaglutide Injection for the treatment of type 2 diabetes. In addition, Thioctic Acid Injection, a peripheral neuropathy (PN) drug developed by Huisheng Biopharmaceutical, has recently obtained the drug registration approval from NMPA, which is deemed to have passed the consistency evaluation on quality and efficacy of generic drugs.

Semaglutide is a long-acting GLP-1 receptor agonist (GLP-1RA) injected once a week, which not only has the potential to potently lower glucose, but also to significantly reduce weight, lower blood pressure, improve lipid profiles and reduce the risk of major cardiovascular adverse events, thereby increasing patient compliance and improving quality of life over the classic GLP-1 receptor agonist drug liraglutide. It is recommended for use in patients with type 2 diabetes mellitus (T2DM), cardiovascular disease or patients at very high cardiovascular risk.